Chain reaction

17 May 2021

A number of factors are making hirers and manufacturers re-evaluate their supply chains. 

One is obviously the pandemic, which has caused factory shutdowns across the globe and created logistical difficulties in transporting equipment, components and spares over long distances. 

And compounding this situation is the fact that successive waves of the virus affect various parts of the world at different times.

Another reason for the disruption is Brexit, as increased bureaucracy and confusion at the border led to extra paperwork and higher costs, as well as delays. 

“Every component we buy from one manufacturer that is based on the Continent costs us more now because of import duties and courier charges,” one hirer told me recently. “It actually used to be faster to buy spares directly from them overseas, with next-day delivery, than to get them from our local approved dealer, but that’s not the case now. 

“That’s one reason why, if there’s a comparable alternative machine available, I am buying more British-made equipment,” he said. 

Recent figures from the Office for National Statistics suggest that British exports to the European Union have now rallied to just below pre-Brexit levels, but they also add that imports coming from the EU have been slower to recover.

So for some time to come, businesses who need products and parts quickly will be looking at the most reliable, cost-effective and quickest way of procuring them. Will that mean seeking new supply chain partners who are closer to home? 

Picture: Tumisu/Pixabay