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IHS Markit Analysis and Commentary Assessing Brexit's impact on the UK's supply chain

29 March 2017 Matteo Fini

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 triggering Article 50 today, 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.

View infographic on Assessing Brexit's impact on the UK's supply chain from IHS Markit.

About this Article
For a more complete analysis, IHS Markit solutions experts review the reliance on imports, support for UK exports, supply chain weaknesses, developing a local supply base and a scenarios impact. This full report is available to subscribers of our "SupplierInsight News and Analysis" solution. For more information on this article, please click here.


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