UK
UPDATED 4 AUGUST:
The UK-India Free Trade agreement could help to lower costs for linen rental businesses servicing healthcare and hospitality, but one supplier warns that shipping, compliance, exchange rates and sourcing complexities also play major roles so it may take a while to see the benefits.
According to the Department for Business and Trade and The Rt Hon Jonathan Reynolds MP, Business and Trade Secretary, business leaders have strongly welcomed the signing of the UK-India Free Trade Agreement. The £4.8bn trade deal will unlock economic growth for each region and nation of the UK and is widely backed by large and small businesses across aerospace, financial and professional services, food and drink, and the automotive sector. Hopefully, it is also good news for linen procurement and textile services businesses in general – and, of course, the NHS.
LCNi caught up with the Society of Hospital Linen Services and Laundry Managers (SHLSLM) for its take on the agreement and what it means for the NHS. Sam McKay, PR officer for SHLSLM and customer liaison and group sustainability manager for Salisbury Linen Services, said: “I haven’t done a deep dive into the new agreement yet but on the surface the new trade deal with India could make a positive difference to how we source our products, especially when it comes to cost. Removing tariffs on textiles means we may be able to get high-quality sheets, gowns, and towels at lower prices, which is always helpful when we’re working with such tight NHS budgets.
“That said, cheaper isn’t always better. We have strict specification and procurement requirement standards, so any supplier, whether in India or anywhere else still has to meet those before anything reaches our customers.
“What’s also encouraging is that more Indian textile companies are now offering sustainable and certified products. If we can get greener materials without compromising quality, that’s a win all around. How long that will actually take, is another story.”
Meanwhile, Aaron Sautter, European product and marketing manager at MIP UK, another supplier to the NHS, said: “In regards, to the new UK/India trade deal, MIP don’t have any current suppliers or partners in India, however whether there is a knock-on effect for our textile suppliers in the rest of Asia is yet to be seen. We imagine it would put more pressure on our current suppliers to be more price competitive.
“For textile distributors importing from India, this is great news, seeing as the geo-political state of the world over the last couple years has presented many uncertainties for global textile suppliers, from a distribution and cost standpoint.”
Catherine Morris, managing director of Tielle by Trade Linens said: “After years of negotiation, it’s encouraging to see the UK and India moving closer to a trade agreement that includes meaningful tariff reductions on textiles. As importers, we’re cautiously optimistic this deal will support more competitive pricing and strengthen long-term trade flows between our countries.
“That said, the full impact will take time to materialise. Tariffs are only one part of the cost of importing — shipping, compliance, exchange rates, and sourcing complexities also play major roles. So while this deal should be good news for the industry, it’ll take time to see the full positive impact at retail level.”
