PA Consulting Group’s Tim Lawrence, head of manufacturing, is interviewed on Radio 4’s PM show. Following the UK’s vote to leave the European Union, the presenter explains that the more international a company is, the more the single market tends to matter. Looking at car manufactures in the UK in particular, Tim talks about how some export most of their production to the EU and buy many of their components there as well.
Tim comments: “If you look at manufacture in the UK, only 40 per cent of the components are made here in the UK and the rest are imported primarily from Europe.”
UK car factories face uncertain future – post Brexit research on the carmakers most likely to leave the UK
Tim continues: “If you have tariffs both ways then this is restrictive. You may get some benefits but you clearly get some losses. This has a significant impact on the ease of doing business for UK manufacturers.”