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PRIVACY
Manufacturing

Manufacturing regions will get "double-whammy" hit from Brexit

Report from Make º£½ÇÊÓÆµ says regions with high dependence on exports to the EU are already suffering losses

An engineer working on a vehicle production line(Image: PA)

Some of the º£½ÇÊÓÆµ's most deprived regions are at risk of a "double-whammy hit" to their economies in the event of a no-deal Brexit, a new report warns.

An analysis of regional manufacturing performance by manufacturing group Make º£½ÇÊÓÆµ and business advisory firm BDO LLP highlights the exposure of those regions with a high dependence on exports to the EU.

They are already suffering losses, but are likely to be most at risk from leaving the EU without a deal, said the report.

Wales, the North East and Yorkshire and Humber have a very high exposure to trade with the EU, so the risks of no-deal are likely to be felt disproportionately by these areas, it warned.

The East Midlands is also at risk, with manufacturing accounting for almost a fifth of its economy and the EU being its biggest market, accounting for just over half its exports.

According to Make º£½ÇÊÓÆµ, given Wales and the North East both contain some of the most economically disadvantaged areas of the º£½ÇÊÓÆµ, a hard Brexit is likely to prove especially damaging for these areas.

Ongoing difficulties in the automotive sector are having an "ominous" impact on manufacturing and those regions most closely linked to the industry, such as the West Midlands and the North East, said the report.

Stephen Phipson, chief executive of Make º£½ÇÊÓÆµ, said: "Although Brexit stockpiling put manufacturing on steroids for a little while, the industry has since gone almost cold turkey and the overall picture over the last year now shows Brexit, global trade wars and the economic downturn in major markets are menacing º£½ÇÊÓÆµ manufacturers.