Ready For Brexit?
As Brexit approaches, the question of whether businesses are ready for its impact is front of mind for British industry.
In the face of this Brexit whose shape remains undetermined, like the vast majority of UK businesses, Robinson Manufacturing (RML) is preparing for all eventualities.
“No-one knows for sure what Brexit will look like, and neither politicians nor economists have proven able to forecast its impact with any certainty,” explained Simon Kidney, RML’s Chief Operating Officer. “However, our reputation for unrivalled service, quality and integrity is underpinned by substantial experience, sensible planning and consistent attention to detail. We have applied this same approach to mitigating post-Brexit supply chain risk. So while no-one in the sector can offer absolute guarantees in the face of uncertainty, we believe we are protecting our customers from supply chain risk at least as well as anyone in the industry.”
Customers can be reassured that:
- As one of the top four truss and joist fabricators in the UK, Robinson Manufacturing carries significant weight with our TR26 suppliers.
- We already take a sensible and pragmatic approach to sourcing, spreading risk around Sodra, Vida, Taylor Maxwell and one or two other players. We have also negotiated a separate deal, rather like the Taylor Maxwell deal, where we import directly from the Swedish timber mill. This gives the business a sensible mix of suppliers and no more than 25% saturation from one supplier.
- We also supply JJI Joists; with a large proportion of raw materials grown and processed in Scotland. This provides better mitigation of supply chain risk than our competition who, on the whole, import ijoists from parts of mainland Europe.
- The stock that we carry in our yard as standard will cover our manufacturing requirements for two weeks and our suppliers have stock on the ground at their storage facilities based around the country which would last a further couple of months.
The devaluation of Sterling against the Euro since the Brexit vote, added to the increase in global demand for timber, has caused timber prices to rise from circa £170 per metre cube to over £250 per metre cube. While we expect upward price pressure to continue, as long as lorries are not being turned away at Calais come March, everyone should remain sufficiently stocked on timber.
We believe our ability to command volume across a diversified supplier pool puts RML in a slightly better position to maintain supply than many other truss manufacturers, so we will not be stockpiling additional raw materials beyond what we consider a sensible level dependent on our order book.
So are we ready for Brexit? With so many uncertainties around Brexit, we believe we have taken all possible sensible measures to protect our customers from the impact of supply chain risk.
If you are a customer and would like a written statement for your own Brexit preparation strategy, please contact us.