Michael Thornton

Written by:

Mike Thornton

Partner, Head of Manufacturing

Another burden for UK manufacturers should they be faced with a 'no deal' Brexit scenario

  • February 2019
  • 2 minutes
  • Brexit

Although the unassuming, some might say uninspiring, design for the new UKCA safety marking might look straightforward, there lies a troubling underbelly of compliance for middle market businesses. 

Currently a range of products, such as toys, machinery and electrical equipment, need to hold a pan European quality manufacturing standard known as the CE marking, to be able to trade in the EU. If the UK leaves the EU without a deal, UK manufacturers will then need to comply with the UKCA safety mark for domestic trading, and the CE marking for exporting to the EU – highlighting an increased burden on UK manufacturers. 

This is a good example of unintended consequences of the practicalities and burden for middle market manufacturers in a ‘no-deal’ Brexit scenario. However, there is no guarantee that the introduction of this regulatory hurdle will not apply as part of any Brexit deal – so this stealth burden may happen regardless of the Brexit outcome. 

Ultimately, large manufacturers with comprehensive regulatory teams will easily manage this extra compliance; but it is the middle market manufacturers that will be hit harder – adding greater complexity and pressure to limited resources.

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Selling products overseas offers big benefits to UK manufacturers but it can also carry significant risks. Download our latest report on the cross border challenges that manufacturers may face. 

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