Fastbox Brexit update October 2018
There continues to be uncertainty over the impact of the UK’s impending exit from The European Union despite fervent negotiation and pressure from business for definitive answers. It is increasingly likely that there will be a “no-deal” and the Industry subsequently has to review the implications of working to WTO terms. As a convertor of cardboard we have assessed the following points and how it may affect Fastbox and our manufacturing process.
Continuity and Supply of boxes
Although some papers are imported from Europe, especially Kraft virgin fibre papers, which may be affected by border controls and delays in the supply chain, a proportion of Paper is sourced from UK Mills, or non-European countries. Therefore our key UK Board suppliers are confident that the effects of supply of paper and board into the UK will be limited and they are looking at increasing the stock pile of papers in their UK plants to ensure there are sufficient stocks.
Although there are no definitive answers forthcoming, the Price of Paper and Cardboard is likely to increase due to the possible introduction of trade tariffs, increased input costs on commodities related to paper and board making, foreign currency movements and effects to the supply chain.
The effect on lead-time should be minimal due to the contingency plans of our key board suppliers. Fastbox will, as always, carry a range of stock boards for any urgent requirements.
Whilst negotiations continue and uncertainty remains there can be no conclusive answers on the specifics at this stage. Our key material suppliers are members of the Confederation of Paper Industries (CPI) who are proactive in lobbying government to quantify the negotiation progress and obtain the best deal for the interests of our Industry. We will update the situation as and when we have a better picture of the actual final outcome.