Est . 1990

November / December 2016

Tank Containers • Flexitanks • IBCs • Drums • FIBCs • Bulk Liners • Road Tankers • Loading / Bagging • Bulk Logistics • Cleaning & Repair Depots • Components

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In September , Professor John Manners-Bell , chief executive of consultancy Members of the Chemical Business Association ( CBA ), representing the key Transport Intelligence ( Ti ) was asked to testify to the House of Lords ’ EU players in the UK ’ s chemical supply chain , have responded negatively to the External Affairs and Internal Market Sub-Committees ’ inquiry into UK ’ s trade Brexit decision in a survey of members . in goods and services post-Brexit . CBA ’ s chief executive Peter Newport said : “ As far as our member companies The UK ’ s supply chain and logistics industry faces an uncertain future . A are concerned , the continuing uncertainty resulting from the Brexit vote is long period of negotiation will mean that it will be several years before the unwelcome . Our survey shows that the main impact of the decision has been country ’ s relationship with its largest single trading partner , becomes clear . to weaken business optimism and damage investment intentions .

Manners-Bell gave his views on which sectors he believed would be most “ CBA members do not believe that Brexit will deliver any significant changes affected by leaving the Single European Market ; the merits of the future trade to the industry ’ s regulatory framework and they are convinced that the costs models which could be adopted and highlighted the potential opportunities . of regulatory compliance will continue to rise ,” he added .

He referenced other successful trade agreements which the EU had developed Some 66 responses were received to CBA ’ s Brexit Survey , representing more in recent years and called on the UK Government to be assertive and than half of the association ’ s membership . confident in negotiations . The main findings of the Brexit Survey were that 56 percent of member Following on from this , Manners-Bell wrote a whitepaper : What will Brexit companies were less optimistic about the prospects for their businesses post- mean for the UK Supply Chain and Logistics Industry . The paper examines Brexit - only 9 percent of respondents were more optimistic . future trade scenarios and supply chains within logistics markets and

A significant minority of companies ( 29 percent ) have reduced their industries . investment plans as the result of the Brexit referendum result – just 12

One of the insights shared in the whitepaper focuses on future trade percent of respondents planned to increase their investment plans over the scenarios and their potential impact on supply chains , highlighting the effects next three years . of different types of trade regulations and their relative significance in supply More than three-quarters of companies ( 79 percent ) did not expect the chain planning . industry ’ s regulatory framework to change significantly as the result of Brexit , Manners-Bell commented : “ When addressing the issue of the UK ’ s future while some 95 percent of respondents expected the cost of regulatory role in global supply chains it would be easy to become pre-occupied by trade compliance to increase or remain the same during the next three years . relations . This would be ill-judged as in many respects supply chains have Some 36 percent of companies expected their employment levels to rise already left trade policy a long way behind . When supply chain managers over the next three years , consistent with the pre-Brexit findings of the CBA ’ s make decisions , tariffs and non-tariff barriers are not at the forefront of their Supply Chain Trends Survey . minds . Inventory levels , risk , product quality , transport availability and even As for the benefits of being in the EU , more than half of all respondents ( 58 ethical and environmental factors these days are significantly more percent ) believed the EU has made a positive commercial contribution to the important ,” he stated .

The Brexit vote is weakening business optimism and damaging investment intentions in the UK ’ s chemical supply chain

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