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Report: Impact of Brexit and COVID-19 on the UK Fashion and Textiles Technology Ecosystem

10/07/2023

A new report has been published examining the impact of Brexit and COVID-19 on the fashion, textile and technology ecosystem in the UK and offering five key recommendations to support future growth.

Impact of Brexit and Covid-19

The report has been jointly published by the Business of Fashion, Textiles and Technology (BFTT) led by the University of the Arts London and the Future Fashion Factory (FFF) led by the University of Leeds with UKFT’s Adam Mansell as chair of the project.

REPORT: Impact of Brexit and COVID-19 on the UK FTT Ecosystem

UKFT’s CEO Adam Mansell said: The UK’s departure from the EU was the biggest change in the global trading environment in decades. With the EU accounting for 75% of the UK’s fashion and textile exports and over 30% of the sectors’ imports, the implications of the change in relationship were always going to be hugely significant.

“Despite the rhetoric, the UK EU Trade Continuity Agreement was not the simplest trade deal ever negotiated. The reality is (and was always going to be) a new trading relationship with significant administrative burdens, with a large increase in costs and with more limited movement of people and product.

“Confidence in the UK as a supply base has fallen sharply with many European companies declining to do business with UK brands due to the new trading difficulties. These difficulties are likely to increase with development of theEU’s ambitious and comprehensive textile sustainability strategy. The strategy will see a dramatic increase in legislation requiring better monitoring and reporting for all fashion and textiles sold in the EU and will apply to UK suppliers.

“This report highlights many of the ongoing issues faced by the UK fashion and textile industry, particularly those SMEs and micro businesses who make up over 80% of the industry. However, the report also highlights the resilience and adaptability of UK fashion and textile companies when faced with challenges such as Brexit and COVID-19.

“Innovation, a highly skilled workforce and a relentless focus on sustainability will be the key drivers for any successful industry and the UK fashion and textile sector has all of those. Through projects such as the BFTT and the FFF the industry also benefits from increased support and investment from UKRI. So, despite the considerable challenges the industry faces it is also a time of great optimism with significant opportunities for sustainable growth.”

The report proposes five key recommendations to support the growth and prosperity of the UK Fashion, Textile and Technology industry in the UK: 

  • Reduce cost and complexity of trade post-Brexit, to increase access to global markets and improve competitiveness, particularly for start-ups and SMEs, e.g. through tax breaks, transparency, and clear guidelines.
  • Grow capacity and competency of the UK FTT sector, to reduce carbon footprint and create employment opportunities, e.g. through business development support, government subsidies, grants and incentives, training, and visa programmes for skilled workers.
  • Build resilience post-COVID-19 through agility, flexibility and diversification to protect financial sustainability of FTT businesses, e.g. through business guidance, mentorship and training.
  • Drive digital innovation in the FTT sector, to increase capacity, efficiency and sustainability e.g. through increased access to digital tools and training, particularly for start-ups and SMEs.
  • Prioritise sustainable and ethical practices to address the climate crisis, improve health and equity for all, e.g. through legislation, government incentives and grants, investment in infrastructure, accreditation and business guidance.

REPORT: Impact of Brexit and COVID-19 on the UK FTT Ecosystem

 

For more research and statistics on the UK fashion and textile industry, please click here

BFTT and FFF are both part of the Creative Industries Clusters Programme (CICP), an £80million initiative funded by the Industrial Strategy Challenge Fund, delivered by the Arts and Humanities Research Council (AHRC) on behalf of UK Research and Innovation (UKRI).

The Business of Fashion, Textiles and Technology (BFTT) is a £5.8m research and development (R&D) programme, focusing on tackling the climate emergency through innovative R&D industry partnerships. Led by the University of the Arts London (UAL) in collaboration with Loughborough University, University College London, the University of Leeds, Queen Mary University of London, the University of Cambridge, and the Victoria and Albert Museum, the programme aims to change the shape of the fashion, textiles and technology industry. Key industry partners include leading Fashion, Textiles and Technology (FTT) brands, online retailers, emergent design companies, FTT business trade associations, including UKFT (the UK Fashion & Textile Association), the British Fashion Council, and Local Enterprise Partnerships. BFTT is part of UAL’s Fashion, Textiles and Technology Institute (FTTI), bringing together design, STEM, cultural anthropology and business practices to deliver sustainable innovation across the entire fashion, textiles and technology (FTT) value chain. Visit Business of Fashion, Textiles and Technology and FTTI.

The Future Fashion Factory (FFF) is a £5.6M industry-led collaborative R&D programme. It brings together designers, manufacturers and retailers, to co-develop and implement new advanced textile and industrial digital technologies (IDTs) to create new products and enable shorter lead times, increased global competitiveness and sustainability. Led by the University of Leeds in partnership with the University of Huddersfield, the Royal College of Art and Manchester Metropolitan University, industry partners include the UK Fashion and Textile Association, the Textile Centre of Excellence, and over 500 businesses. Future Fashion Factory is part of the Leeds Institute of Textiles and Colour (LITAC), a collaborative, multi-disciplinary research institute addressing global challenges in textiles, fashion and colour through research and innovation, as well as teaching. Find out more about Future Fashion Factory  and LITAC by clicking the links.

This research was a collaborative project made possible with support and funding from AHRC, BFTT, FFF, ESRC Impact Acceleration Account (ESRC IAA), Leeds University Business School (LUBS), UAL LCF Fashion Business School, UKFT and UKRI.