Brexit: Irish Sea border 'still causing difficulties'

A fifth of NI manufacturers said suppliers are unwilling to engage with the new Brexit requirements

Brexit and the Irish Sea border are still causing difficulties for Northern Ireland manufacturers who buy materials and parts from Great Britain, an industry survey has suggested.

Manufacturing NI surveyed 190 companies between 2 April and 23 April.

It found that Great Britain suppliers' unpreparedness or unwillingness to adopt Brexit regulations are the largest issues firms currently face.

Most companies believe the NI Protocol is here to stay, but needs improved.

The protocol keeps Northern Ireland in the EU's single market for goods and EU customs rules continue to be enforced at its ports.

That means significant new paperwork and processes when importing materials and equipment from Great Britain.

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'Unwilling to engage'

Lack of preparation or awareness among suppliers in Great Britain was an acute issue in the early weeks of this year and that has persisted.

A fifth of businesses surveyed said that suppliers are unwilling to engage with the new requirements, which is up from 15% in February's survey.

In some cases that means businesses from Great Britain no longer supplying the Northern Ireland market.

The NI Protocol means significant new paperwork, processes and checks when importing materials and equipment from Great Britain

It was a mixed picture for how businesses in Northern Ireland are coping with the new processes.

Almost a third of businesses said they are now on top of issues after initial disturbance, up from 20% in February.

But the share of businesses that said they were struggling with issues which are likely to persist also increased, up from 23% to 36%.

Businesses also reported wider supply chain issues and material cost increases, which are unrelated to Brexit.

Manufacturing businesses around the world are reporting a variety of supply chain bottlenecks, largely related to the rapid economic bounce back from the pandemic.

Optimism in sector

Overall, Northern Ireland manufacturers are much more optimistic than they were at the start of the year.

Almost half of firms surveyed are currently experiencing rapid or moderate growth compared to just 23% during the summer of last year.

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Manufacturing NI chief Stephen Kelly said the resilience and optimism of Northern Ireland firms is helping to build confidence.

Mr Kelly said: "While 77% said they have experienced a negative impact on their business since the Brexit transition period ended, a growing number are saying they are on top of issues.

"A sizeable number, 36%, believe the difficulties are likely to persist, however.

"What almost half of the businesses surveyed are telling us is that the Northern Ireland Executive must identify and secure new opportunities to support them."