SupplierInsight Exclusive: Assessing Brexit’s impact on the UK’s supply chain

The UK’s decision to exit the European Union following the June 23rd 2016 referendum could have some far reaching implications on the long-term viability of UK manufacturing, given the significant supplier-customer interdependency between the UK and the other 27 countries of the European Union.

The prospect of the UK pursuing a “hard Brexit” approach, meaning leaving the single market and reverting to WTO tariff schemes, raises questions on the competitiveness of UK auto manufacturing in the long run given the inter-twined nature of both the outbound and inbound logistics supporting the UK automotive industry. With the UK poised to trigger Article 50 on March 29, IHS Markit Supplier Solutions team has completed an assessment of the impact on OEM sourcing strategies and possible trade policies that the UK government would need to implement in order to retain the competitiveness of UK manufacturing.