According to Santander around 30% of UK firms plan to find closer (‘friendly’) supply sources as a result of recent increased international tensions. It claims that one in four companies, with Chinese suppliers, also intend to find alternative sources of the parts they need. The obvious purpose is to reduce the risk of supply chain disruption in the event of conflicts or trade wars. One concern this raises, however, is that of increased production costs and the effect on the level of international trade.

BFS Comment:

In light of recent international events, this would appear to be a wise move for many UK companies. The ideal result would be for a significant percentage of these goods, currently source from China or other ‘less friendly’ suppliers, to be sourced from UK based suppliers in future. This would increase our GDP and improve the currently poor trade balance.

If you need a business loan or cash flow injection to grow your production capability, but are struggling to raise it, come and talk to us at BFS.

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