Brexit already having an impact on Midlands aerospace industry
The impact of Brexit on the Midland’s crucial aerospace industry has come into sharp focus after Airbus warned it could quit Britain in the event of no deal between the UK government and the EU.
Andrew Mair, chief executive of the region’s biggest aviation industry body, the Midlands Aerospace Alliance, said Brexit was already having an impact on aerospace businesses in the Midlands.
“It is contributing to a skilled labour shortage and there are companies already planning to invest within the single market. Our industry is already less competitive and there are already multi-national companies looking at factors like political stability in making investment decisions.”
Dr Mair said Airbus was attempting to have a sensible business discussion with the Government by raising in public the issues it had and the risks in Brexit.
“Many big companies I have spoken to agree privately. The politics of Brexit at Westminster is driving policy making and business is concerned that the real implications for business are not being considered.
“A company like Airbus is making real decisions about what it is doing in a couple of year’s time.”
He said they had to decide whether to build up stocks and plan for higher costs working in the UK because of problems of international trade.
“They are really saying something which a lot of other companies would also be thinking.
“We really need to have serious thought and discussion on this and get beyond Westminster politics.
“I’m not surprised they have done this and it is not the only company which has this kind of view.”
Dr Mair said if Airbus went ahead with pulling out of the UK it would have extremely serious implications for aerospace in the Midlands, where companies such as Moog and UTAS in Wolverhampton are major Airbus suppliers. “If it pulls out there is very little aerospace industry left. Other large companies could do the same,” said Dr Mair.
He said Airbus had been investing in its sites in Bristol and North Wales until fairly recently.
It would not pull put over night and there would be a gradual winding down as new investment was made in other countries instead.
He said companies in the supply chain would be in the same position of deciding if the UK was the best place to operate and would find another gateway to the single market.
He said Airbus had made its announcement carefully.
“It is a business saying lets be realistic and understands that real business decisions are being made about jobs and incomes for the future and practical solutions are needed.
“There is a camp politically that used to be remainers that are now Brexit realists and are saying lets be realistic about it and not ideological,”
