The International Trade & Investment All-Party Parliamentary Group (APPG) has launched an inquiry into the support needed for businesses looking to futureproof their supply chains.
Designed to feed back to government on challenges around supply chain resiliency, the inquiry is designed to produce “practical recommendations” on reducing vulnerabilities in the case of “sudden short-term incidents” like the recent power outages in Spain and Portugal.
The Chartered Institute of Export & International Trade jointly acts as the APPG's secretariat, alongside NorthPoint Strategy.
It also seeks to address the impact of longer-term challenges such as the Covid-19 pandemic, and comes at a time when UK businesses are facing increased uncertainty due to the global trade war initiated by the Trump administration and rising geopolitical instability.
Those interested in responding to the call for evidence can do so through a short survey.
Launch event
At a launch event for the inquiry held yesterday (6 May), industry figures noted that smaller firms in particular may struggle with supply chain shocks – especially as they often come in quick succession. It can also be made more challenging by changing compliance requirements, particularly for firms exporting to mainland Europe.
The growth of e-commerce platforms has made weathering these storms a little easier, others suggested, while others noted that diversifying supply chains away from China was another way of preparing for geopolitical turbulence.
‘Reset’ importance
The event was opened by Mike Reader, MP for Northampton South, who chairs the APPG.
Reader said that the UK-EU relationship ‘reset’ being pursued by the government would be of increasing relevance for achieving supply chain resilience, and provided an update on the new trade deal agreed with India.
Noting that there have been “some real shocks to supply chains” in recent times, he namechecked the recent ship collision in the North Sea, the continuing effects of the UK’s EU exit and the tariff policy of the current US administration. Conflicts in Ukraine and the Middle East were also having an effect, he added.
“Innovation and ambition is not enough for businesses,” he said, explaining the thinking behind launching the inquiry.
“We need some government intervention and assistance” in a time of “global competition for investment”, he added, arguing that the UK needs to be “as attractive as possible to the private sector”.
