Labor Shortage and Lack of Supplies from Asia Are Disrupting the UK Supply Chain
Many industries in the UK are unable to reopen as a result of Brexit and COVID-19 lockdowns, as employers struggle to find staff to reopen their businesses. Even worse, limited supply from Asia has made the national market more vulnerable than ever. Come view our article to learn more about this issue.
The UK is facing a severe labor shortage, causing one of the most severe supply chain crises since the 70s in many industries, from food production and retail to hospitality. As if that’s not bad enough, the lack of supplies from Asia is making the situation even worse for the manufacturing and construction sectors.
Many Sectors Are Suffering Worker Shortage
As a consequence of Brexit, up to 1.3 million overseas nationals had to leave the UK over the past year, with almost 700,000 non-UK-born workers leaving London alone. The COVID delta variant and ongoing border restrictions have caused negative impacts, especially becoming more severe on many industries.
In the food production sector, fruits are left rotten on the farm, slaughterhouses struggle to process meats, and milk delivery suffers delays because of the shortage of workers to select, process, and transport goods.
A shortage of truck drivers also prevents commodities from reaching supermarket shelves, not to mention insufficient staff before the pandemic has worsened as migrant drivers left the country during the crisis, mainly because new employee training and licenses slipped.
As for hospitality, pub and restaurant reservations may have boomed in the summer after lockdown eases, but many venues are operating under limited opening hours due to staff shortages. Employers are struggling to find chefs, kitchen porters, cleaners, and companies.
Inadequate Supplies Are Imminent
Construction companies are also struggling to hire workers, preventing migrant workers from the EU from leaving the UK, forcing employers to boost their starting salaries.
The situation has gotten worse when builders reported that supplies are difficult to obtain. Materials from cement to gypsum board are lacking, and timber prices have recently reached record highs. As a result, construction projects are lagging, from home construction to commercial and civil engineering.
Furthermore, rising COVID-19 infections in Southeast Asia are causing a shortage of microchips, affecting the production of the entire manufacturing sector in the UK, especially car production and a variety of consumer products. Most experts predict that it will take at least six months and possibly more than a year for the national markets to stabilize.
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