Displaying items by tag: CBM

Thousands of manufacturing jobs and tens of companies could still be lost in the domestic supply chain if the Government does not reconsider its approach to steel safeguarding.

The stark warning comes from The Confederation of British Metalforming (CBM), which has seen its 200+ members severely impacted from tariffs designed to protect parts of the UK steel production sector that are currently ill equipped to meet actual domestic demand.

This means tier1s and sub-contractors to automotive, aerospace, construction and general engineering have been paying hundreds of thousands of pounds to import their ‘Category 12’ steel - including critical quality and performance bar and section - from European mills, as the quarterly tariff-free quotas are running out within a month.

Recent pleas from the CBM to remove engineering metals under the 7228 code has seen the Government act, almost doubling the available quotas for this category before the 25% tariff kicks in.

Whilst this move is welcomed as a small sign of progress, it does not go far enough to remove the unnecessary financial cost and injury being felt down the supply chain and raises the very real prospect of lost orders and production being moved away from the UK.

“We acknowledge the substantive increase in the Category 12A quota and welcome the motivation to rebalance an unfair and severely damaging position that has led to it,” explained Steve Morley, President of the CBM.

“However, during this quarter the Category 12A quota on imports from Europe exhausted within one month. Doubling that quota will not, therefore, prevent exhaustion, it just pushes it a month further down the line.”

He continued: “That means CBM members will continue to have to operate with a high level of uncertainty and jeopardy. A continuation of that jeopardy over a further two years, will mean continued questions from overseas holding companies about the viability of manufacturing in the UK. Even at reduced levels, tariff costs will continue to injure these businesses unjustifiably.”

The Confederation of British Metalforming is keen to support a vibrant UK steel industry that delivers world class performance and quality at a cost that is competitive.

Recent investment by British Steel in Scunthorpe is a shot in the arm for the sector, but there is a need for other major players in the industry to show the same level of commitment to producing steel in the volumes and specifications required by UK manufacturing.

Steve went on to add: “British steel mills have not been able to supply the Cat 12a materials our members need to support critical domestic and export supply chains, nor are they likely to be able to do so in the near future. So, what exactly are the Government looking to protect? It certainly isn’t UK jobs in downstream metal manufacturing!

“The increase in quotas need to go further and we are therefore requesting that Anne-Marie Trevelyan, the Secretary of State for International Trade, adjusts the level of the Category 12A quota for imports from Europe to 33,000 tonnes per quarter.

“This is the only solution that will have virtually no effect on UK steelmakers, but, at the same time, will allow our members to import materials when required without the risk of incurring 25% additional costs.

“It will also alleviate damage to downstream British manufacturers, already facing the threats of losing critical contracts, of shedding jobs, or finding their manufacturing operations relocated to the EU or other parts of the world.” 

He concluded: “The Government must listen to us. If they do, this will remove the current unnecessary burden that carries a very real threat to thousands of downstream manufacturing jobs, whilst leaving safeguarding categories in place to protect UK Steel members."

For further information, please visit www.thecbm.co.uk

Manufacturers of sheet metal components, forgings, fasteners and cold rolled sections can get vital support to help them cope with soaring energy costs according to a leading trade body for the sector.

The Confederation of British Metalforming (CBM) has received notification from the Environment Agency that the Climate Change Agreement scheme has reopened to new entrants, but firms only have until March 31st to stake their claim.

This means thousands of businesses - already struggling with supply chain disruption and the aftermath of the pandemic - could be eligible for a discount of up to 100% of the tax they will be paying on their gas and electricity bills.

Bosses at the CBM made the rallying call today in a bid to raise awareness amongst companies who did not know the change of rules could see them benefit from the discount on the Climate Change Levy whilst the replacement scheme is being consulted on.

“Over the past two years, industry seems to have hurtled from one problem to the next, with our 200-strong membership base struggling with debt carried over from the pandemic, reduced sales due to supply issues and rising costs in all areas,” explained Stephen Morley, President of the CBM.

“The last thing they need now is soaring energy prices, where, in some cases, we’ve seen increases of over 100% - how can any business cope with that? It’s an issue that will be top of my list when l meet with Kwasi Kwarteng MP, Secretary of State for Business, Energy and Industrial Strategy, this week.”

The CBM has administered Climate Change Levy agreements since 2001 and its members have so far benefitted from annual savings of £4m in Climate Change Levy Tax.

Specialists at the organisation work with eligible members to complete all the administration by reviewing bills and completing the application before ongoing annual management with submissions to the Environment Agency.

Geraldine Bolton, CEO of CBM and lead on Energy Services, went on to add: “Industry is recovering and recovering well, but there are plenty of challenges - a lot of which are out of its control.

“Energy costs are at the top of everyone’s agenda at the moment, but outside of fixed price contacts there are few avenues for companies to turn. The Climate Change Agreement Scheme being reopened is an unexpected bonus, yet not many management teams know about it or understand what to do.

“After this window of entry is closed, there will be no more opportunities until March 2025, when we should eventually know what the new scheme will look like.”

She concluded: “By becoming a member and tapping into our offer, manufacturers can also avoid ‘consultants’ who, in some cases, take 50% of the potential savings. Our route is far more cost effective, plus it will also give them access to our other services, including extensive networking and lobbying capabilities.”

For further information, please visit www.thecbm.co.uk