HVAC manufacturers says they are spending ‘hundreds of thousands’ of pounds on building stock reserves as contingency in the event of a No Deal Brexit.
Manufacturers in the HVAC sector said they have had to invest heavily in warehousing and logistics arrangements in the event that they need to either import components or export finished product after exiting the EU with no deal in place.
The claims have been made as the government announces it is ramping up preparations in the event of the UK crashing out of Europe – ranging from a £2 billion support fund to a 100-page HMRC advice pack to putting 3500 troops on standby.
Radiator specialist Stelrad said the company was looking to provide warehousing for an extra 100,000 units – adding to its existing 300,000 stockholding – to defend against anticipated Brexit tariffs.
Similarly, heating giant Baxi group said it was making considerable investment in stockholding. Marketing director Andrew Keating said: “We are now essentially planning for a No Deal Brexit and spending a lot of money in stock and warehousing.”
Whilst there is still every hope for a political resolution, Mr Keating said, it was now crucial to plan for the worst scenario. He said: With such a level of uncertainty, the most important thing is that we are consistent with our customers and our staff.”