Welcome to Forbes’ quarterly Manufacturing & Engineering Sector eNews. 

Supply chain issues ... Supply chain issues don’t appear to be going away and with latest inflation figures up to 9.4% and a predicted rise to 12% by October, the outlook is much the same if not worse.

The overwhelmingly common theme for the assistance which we are providing our manufacturing clients at present surrounds the safeguarding of the supply chain and in our latest edition of this eNews we have focussed on how this has been achieved.  From a Corporate standpoint, we have seen clients bringing supply in-hours through the acquisition of suppliers, or taking options over the shares of suppliers.  Commercial work continues to be see in a rise in cost plus pricing mechanisms and open book policies becoming ever more commonplace.  These are just a few examples.  We’re seeing that suppliers are more prepared to discuss alternatives to the norm with purchasers less loyal in their time of need. 

With the rise of energy prices much more out of your control, now is a good opportunity to approach suppliers and discuss the innovative ways in which you can work together to safeguard supply and tie in business to the mutual benefit of both parties.

We continue to be impressed by the resilience of the manufacturing businesses which we serve and have no doubt that this is just another bump in the road.  Please don’t hesitate to get in touch if you’re in a position where you’d like to discuss options available to your business.

  John Pickervance
  Partner, Head of Commercial
  T: 07976 257777
  E: John.pickervance@forbessolicitors.co.uk

Mergers and Acquisitions - The Solution to Your Supply Chain

The Pandemic, Brexit and war in Europe have wreaked havoc on our supply chains. Outsourcing used to be the ultimate business model, outsourcing ancillary activities at an arm's length so that businesses could focus on what they do best. It was efficient and it was affordable. However, all of that changed when the rules on everything from the supply of goods to human contact and international travel began to fluctuate. From the very top of national and international governance, the rules have chopped and changed and are yet to settle. Outsourced services (in particular, cross border services) have experienced delays and even cancellation, causing knock on disruption to their customers. The cost has increased when efficiency has decreased.

Could agency workers resolve the disruption caused by Industrial Action?

The current legal position surrounding business disruption caused by industrial action is that if your business faces industrial action, employers are unable to recruit agencies to supply workers specifically to cover work that is not being done by lawful industrial action, however, that could soon be set to change.

Product safety... are you complying with the law and are you protected?

If you make, import,   distribute or sell consumer products in the UK, you are responsible for making sure that they are safe for consumers to use and to follow any legal requirements required in relation to ensuring the product is safe. If you do not comply with these legal obligations and products are found to be unsafe or cause harm to consumers, you could face legal action.

Navigating fixed price or long-term supply contracts within the manufacturing sector

With the manufacturing sector experiencing ongoing supply issues with labour shortages and the never-ending price increases across fuel and raw materials, many businesses are finding themselves in difficult circumstances and are struggling to keep up with supply and demand.

Time for a Change - Tenant's Alterations in Commercial Leases

It is common for tenants of commercial properties to wish to make physical alterations to a property during the term of their lease, to adapt the property to fit the tenant's way of working and to ensure that the property continues to meet the operational needs of their business.