The shortage of materials, parts and finished goods isn't due to the border controls. The well-known company I work for which makes agricultural machinery has huge problems getting parts and materials we have over 80 million pounds of part finished machines waiting for parts, constant daily shortages resulting in production delays.
The border controls have added a day to the logistic pipeline which means adding a day to the lead time before the part is needed on the production line which hasn’t been a big problem. Finished goods into EU and parts out of EU has settled down to almost normal. We have registered as an AEO which allows unrestricted import of parts to us, which effectively makes us the border point for our parts.
The problem is getting parts and materials due to the months of backlog in supplier’s inventory due to Covid, this is around the world not just EU or UK. The whole pipeline from raw material to finished parts emptied out and have yet to fill, manufacturers have been reluctant step up production not knowing if more disruption is on the way, who wants to hold expensive stock if the market collapses as it did last year.
We stopped early on in the pandemic last March for 5 weeks, restarting at the beginning of May ’20 and haven’t stopped since, our order books are full, and production speed is up, the only thing holding us back is parts & material supply, and believe me we are prepared to pay the increased cost to secure supply.
This is a big business problem the plant I work in, which is one of 69 around the world, turns over nearly £1 Billion per year on its own, so the price we are prepared to pay to keep producing drives up the prices across the board.
To the argumentative bunch I know what I'm talking about, I’ve spent the last 15 months trying to keep a major UK factory going and in profit, you would not believe the amount spent in this effort.
Edited By Juddy on 11/06/2021 10:12:57
Edited By Juddy on 11/06/2021 10:13:23