With Brexit negotiations hanging in the balance, CECE today held an online workshop to inform members and interested parties of what is at stake for the construction equipment industry in the future EU-UK relations.
During the workshop, CECE reminded that the end of the transition period in January 2021 represents the proverbial cliff edge, where the no-deal scenario would be the worst of all outcomes. Speakers at the workshop agreed that industry should expect increased costs from compliance to a double marking system, additional customs procedures, disruptions in component sourcing and even the possible departure from the UK by some global OEMs, which now make an estimated 22% of their production volume in UK-based factories.
Kicking off today’s event, CECE secretary-general Riccardo Viaggi said: “We will all be worse off in January 2021. Complex industrial value-chains need frictionless trade, absence of tariffs and mutual recognition of markings. The expected regulatory divergence will create administrative and financial burdens that are not even imaginable in some cases, considering the depth of integration provided by the EU Single Market. Therefore, the negotiators must ensure that all efforts are made to reach a last-minute deal and prevent the worst-case scenario of no-deal. This is what we have been calling for since the beginning of the negotiations.”
In a poll held during the workshop, attendees pointed at significant cost increase and supply chain disruptions as the worst economic impacts of the no-deal scenario. However, 75% of respondents reported having addressed the situation of a challenging scenario in January 2021. Half of those considering the negative impacts on their business responded, having made plans for a no-deal scenario.
CECE represents the interests of national construction equipment manufacturer associations in Europe. The sector counts around 1200 companies that employ about 300,000 people directly and indirectly. The European construction industry’s annual revenues amount to around €40 billion. The industry’s durable and innovative machinery are working tools to help to build the houses, offices, factories, roads, railways and bridges that serve citizens across the globe.
