Despite the initial nervousness around the UK’s divorce from the European Union, according to the society of Motor Manufacturers and traders (SMMT) British manufacturers achieved their highest output in 17 years last month. However, while automotive manufacturers seem to be thriving, businesses operating in the aftermarket could be faced with hefty cost increases. But what can be done to safeguard businesses in the aftermarket?
Given that as much as 80% of all components and parts are sourced from abroad, any tariff imposed as part of Brexit negotiations could have a huge impact on the aftermarket industry as prices soar. Quite simply, Consumers will not accept these higher prices when it comes to repairing and serving their vehicles. Thus, to remain competitive, businesses across the aftermarket must take steps today to maximise the efficiency of their operations as well as to eradicate any unnecessary supply chain costs.
Brexit could force businesses to place far more scrutiny on their operations. However, through putting in place the tools, processes and knowledge required to succeed now, businesses can ensure they have the visibility, insight and control required to prevent costly mistakes in the future.
The SMMT had previously warned that Brexit could present the UK automotive industry with a double-edged sword and it seems there is still plenty of uncertainty when it comes to the potential impact of Brexit. With this in mind, how will your business manage the risks that are associated with Brexit?