Pharma and tech firms stockpiling for hard Brexit

Best in class modern management uses precise just-in-time logistics to minimise inventory and maximise return on assets, but manufacturers in the UK facing uncertainty over Brexit (Britain’s withdrawal from the EU trading bloc) will begin stockpiling goods on the continent and replicating some production facilities to avoid business disruptions.

Pharma giant AstraZeneca is working on duplicating labs between its UK and European manufacturing facilities, moving technology and methods between countries, shifting key members of staff. Aircraft engine supplier Rolls-Royce and Airbus are also making contingency plans. Highly complex industries like pharmaceuticals and aerospace have highly detailed regulatory approvals attached to specific manufacturing addresses.

The worst-case post-Brexit trade scenario could be supply interruption. Even with eight months of planning to the March 29, 2019 deadline might challenge some supply chains due to new customs paperwork.

Read more: BBC / Reuters (1) / Reuters (2)

Image: katicaj/Pixabay CC0

This story is taken from the 20 July 2018 edition of The Warren Centre’s Prototype newsletter. Sign up for the Prototype here.