Visit from Paul Williams, Stockton South MP
Paul Williams, Labour MP for Stockton South paid MI a visit this week, to understand further the challenges companies are facing with the current political uncertainty.
Paul's comments were:
I am often asked about Brexit.
Some people support Theresa May's deal, some want to leave with no deal, some want the people to have the final say.
It's somethi...ng that seems to dominate our news every day and means a lot to people - and rightly so. There is much at stake.
It's important I continue to listen to as many people as possible, so today I went to meet Alex Ingham at his business, MI Supplies, in Thornaby.
MI Supplies sell safety equipment and clothing all over the UK and the world. In the 13 years since they started, they have invested in their business, hired local people, contributed to our economy and have been steadily growing.
They expect to grow their turnover from £2.3m to £2.9m this year. However, last year, they posted their first ever loss.
One of the reasons for this was that immediately after the 2016 EU referendum, they saw the cost of buying products increase by £400,000 within year because of the fall in the value of the £. By next year, this increase will be £750,000.
Alex's team and business model has been highly efficient. They've created a logistics network which can get products to anywhere in the UK or Europe in 24-48 hours. This gives them the edge in many countries over domestic competition.
But in a future where we're no longer a part of a Customs Union, MI Supplies would face delays in receiving stock. They currently operate a just- in-time system. They will need to increase stock and then pay for more storage space. Most critically, they don't want to lose the ability to get their product in front of their customers as quickly as competing businesses in the (mainly EU) countries that they serve.
When a business takes a chance on investing to grow, then creates lots of good jobs for local people, pays into our economy and continues to offer a good service and product to customers, they should not have to have their hands tied behind their back when competing on the world stage.
If we want to see businesses in our area grow, compete and win more work, bringing more jobs back to Teesside, then we have to listen to what they're telling us. Alex has told me that any form of Brexit is bad for his business, and particularly one that keeps the UK out of the Single Market and Customs Union. There just aren't the opportunities for trade in the US and other markets to replace the threat of lost trade within the EU.