J and J Ormerod (JJO) has warned that the constant uncertainty surrounding Brexit is having a massive impact on companies stifling investment and forcing stockpiling.
The kitchen, bedroom and bathroom manufacturer has filled its warehouses with £1million worth of extra materials and components, many of which it sources from Europe, to ensure it has the capacity to continue to fulfil orders.
However, that stockpiling, which has been going on for more than six months, reportedly hampers the company’s ability to make capital investment in new machinery to improve manufacture.
Joint Managing Director, Stephen Greenhalgh, who is also director of the East Lancashire Chamber of Commerce, said the political stalemate and impasse needed to end.
He was quoted in a Sunday Times article outlining the effect the Brexit deal wait is having on business. Stephen said: “We are in no-man’s land where Brexit could occur at any time. We have had no choice but to maintain this stockpile of reserves while we wait for a Brexit deal to be agreed and implemented.
“Without the necessary components and materials we would not be able to meet our customers’ needs and that is uppermost for any business to survive. Some of our products are on 12-week lead times and so we have to be one step ahead of the game because there is uncertainty about what impact a deal or no deal may have on the importation of items from Europe and JJO is far from just the only business to be affected.
“At Chamber meetings, the Brexit uncertainty is a constant subject for debate. Politicians need to sort this out expediently.”
