As the Brexit deadline approaches (although no one’s quite sure anymore just when that deadline will be), industries of all shapes and sizes are getting ready for our withdrawal from the EU… and the manufacturing sector is clearly no different, with new analysis showing that activity reached a 13-month high of 55.1 in March – up from the revised reading of 52.1 seen the month before.

The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index shows that attempts to stockpile and build up a safety net resulted in survey-record hikes in inventories of both purchases and finished products.

Companies stepped up their production efforts to build inventories ahead of Brexit, as well as meeting increasing inflows of new work. New business was seen to improve from both domestic and export markets, which had a positive effect on staff hiring. Jobs growth was recorded after consecutive reductions seen at the beginning of the year.

The rate of increase in stocks of purchase reached a record high for the survey for the third month in a row in March, with capital, consumer and intermediate goods all seeing inventories increase at series high rates.

Brexit, inflationary pressure and shortages of raw materials were all seen as being factors underlying an additional rise in average purchase prices for the month, with manufacturers reporting that part of this increase in costs was passed onto clients in the form of higher selling prices.

Increased pressure was also placed on supply chains for manufacturers, revealed in the form of a marked deterioration in average vendor performance. Lead times were extended for the 42nd month in a row, put down to ongoing capacity pressures at vendors, strong demand for raw materials, lack of freight availability and strikes and delays at the Calais-Channel crossing.

Discussing Brexit and the reasons for this rise in stock building, group director at the Chartered Institute of Procurement and Supply Duncan Brock said: “Firms attempted to guarantee certainty of supply, lock in good price deals and protect their operations from withering under the pressures of uncertainty as new orders from domestic and export markets such as mainland Europe rose at their fastest rate this year.

“Supply chains paid a heavy price for this spike in activity as delivery times increased again and suppliers under the cosh for raw materials and finished goods struggled with demand and transportation issues.

“This panic-buying had a marginally positive effect on job creation however, as increased Brexit preparations required more hands on deck and some businesses were carrying on regardless launching new products and markets.”

He went on to add that the worry is that if this “threat of uncertainty” goes away, companies will have to turn to heavy discounts on stocks to free up operating expenses if typical order levels do not restore themselves in the near future.

Higher price inflation will continue to eat away at margins, while paying more for raw materials and energy could see economic burdens exacerbated for businesses, which will result in the re-examination of job hiring strategies.

Last month (March), the latest CBI Industrial Trends Survey found that output volume growth had weakened slightly in the three months leading up to March, but the pace of growth was weak in comparison with the strong growth rates for output seen over 2017/2018.

The survey also questioned manufacturers over whether Brexit uncertainty was having an impact on their activity, with a quarter reporting stock-building and others making mention of depressed investment and demand, as well as difficulties in obtaining export orders.

Chair of the CBI Manufacturing Council Tom Crotty noted that manufacturers are now despairing at the failure of the government to bring an end to the Brexit impasse. As each day passes with no clear resolution in place, more businesses are being put off investing and stockpiling products to help cushion the blow of a no-deal Brexit scenario, which could have serious ramifications.

Mr Crotty went on to say that it’s essential this uncertainty over Brexit is lifted “as a matter of urgency” as this will then mean that those in the manufacturing industry can move forward and refocus attention on resolving long-term challenges such as raising productivity and solving the skills shortage.

The BBC reports that MPs have just voted by a majority of one to force Theresa May’s hand and ask for an extension to the process so as to avoid a no-deal Brexit. The bill is set to be considered by the Lords and its approval is required in order for this to be passed into law, but the EU has the deciding power over whether or not to grant an extension.

The proposed legislation would force the prime minister to request for an extension to Article 50 beyond April 12th, giving Parliament the power to decide the length of the delay due to be requested.

Stephen Barclay, Brexit secretary, told MPs that he hops the Lords will really scrutinise the bill, adding that there is no guarantee that the UK won’t be participating in the European elections next month and to take part would be a “betrayal” and “inflict untold damage”.

Chancellor Philip Hammond, meanwhile, has said that he believes Brussels will insist on a lengthy delay to the Brexit process, describing the possibility of a public vote to approve a final deal as a “perfectly credible proposition”.

Some MPs have expressed frustration at the fact that this backbench bill cleared all stages in the Commons in a couple of hours, instead of the usual months, with Mark Francois describing it as a “constitutional outrage”.

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