Manufacturers in the UK have been stockpiling materials and resources in an attempt to protect them from the negative effects of Brexit.

The latest Industrial Trends Survey from the Confederation of British Industry (CBI) noted that stocks of finished goods among the country’s manufacturers reached their highest level since the financial crisis in May this year.

According to the organisation, output growth also remained “broadly steady” in the three months to May. This was driven by the chemicals, mechanical engineering, food and drink, and tobacco sub-sectors. However, total orders hit their lowest level since October 2016.

CBI deputy chief economist Anna Leach commented: “With investment down, stockpiling up and the threat of no-deal ever present, we desperately need parliament to thrash out a viable deal in the national interest.”

Group director of INEOS and chair of the CBI manufacturing council Tom Crotty agreed, stressing that the sector is being “held back” by the Brexit uncertainty and is therefore unable to focus on solving other problems, such as the growing skills shortage or increasing productivity.

“Manufacturers are being forced into putting huge amounts of money and resources into contingency planning that could have been spent on creating jobs or making investments in new technology,” he asserted.

This all comes as British Steel has been placed in compulsory liquidation, after failing to get additional funding from the UK’s government.

The company’s owner, Greybull Capital, is now seeking a potential buyer for the business. 25,000 jobs at the company are currently at risk following the announcement of the liquidation.

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