No Deal Brexit: How a No-Deal Brexit could impact the UK Glove Market:
Almost 100% of disposable examination gloves are manufactured outside the UK, meaning every single disposable glove that enters the UK, comes via UK ports or by rail from Europe.
Disposable gloves are an essential consumable item across a wide range of industries from healthcare to the automotive industry. Careful management of the global supply chain and stockholding is required to keep a balance to ensure users are never forced to go without stock of gloves.
Analysing key potential impacts of a no-deal Brexit for your business is essential, the following gives an insight into just some of the many challenges that may face us ahead and how this may affect your supply of examination gloves
The recent release of the Yellowhammer document says between 50-85% of UK Lorries travelling to the EU may not be ready for French customs. Lack of readiness and limited space in French ports could cut HGV traffic by 40-60% and lead to disruption lasting three months.
The Port of Dover in Kent handles approximately 10,500 lorries a day. To prevent nearby roads from clogging up, the government has a traffic management plan codenamed Operation Brock.
If further capacity was still required, a "last resort" would be to turn the 10-mile M26 motorway into a temporary lorry park.If the plan is activated, up to 2,000 lorries will be held in a queue leading to the port. Other traffic will be kept flowing around the queued-up lorries, in what is known as a contraflow system.
What does this mean for you?
Stock shortages in the UK and increased demands on UK Importers
October and November are notoriously busy times every year due to the pre-Christmas rush, a ‘No deal Brexit’ and a change in the port systems delaying the freight could prohibit stocks arriving on time.
As a large stockist of disposable examination gloves, we know that when there are delays or rumours of delays, our customers buy ahead of time and buy more stock than usual. We urge all our valued customers and prospective customers to invest ahead of time to secure additional reserve stocks to keep you ahead of the game when the delays start.
Ensuring you are equipped with stock will add value to your business from a client perspective. However, panic buying by end users as a result of national media reporting about delays is likely to spark end users into purchasing additional stock which could put pressure on their finances. Take time to calculate your needs carefully and bear in mind a few of the possible outcomes.
What can you do?
- Increase stockholding sufficiently before and after the 31st October Brexit day to safeguard your stock
- Make it known to your clients about the risks and helping them make their own plans.
- Re-check your stock forecasting bearing in mind the potential for increased demand should other distributors run low.
What have we done?
Worked closely with respected financial institutions to manage our exposure to the risk of currency depreciation following a no-deal Brexit hereby limiting price fluctuations.
Increased our own stock holding to ensure our customers’ demands are covered.
Peace of mind
Gloves4u are committed to working carefully with our partners to ensure that whatever happens on 31st October, our distributors are not caught short. We have large stocks for you.