Connect with us

Published

3 years ago

on

Empty shelves that usually stock bottled water at Sainsbury’s supermarket, Greenwich Peninsular, on September 19, 2021 in London, England.
Chris J Ratcliffe | Getty Images

The U.K. has emerged from the Covid-19 pandemic to find itself faced with an onslaught of new economic crises that have left the country in “a precarious position,” experts have warned.

A perfect storm of labor shortages, skyrocketing natural gas prices and global supply chain constraints have put the country in prime position for a difficult winter. Rising demand as economies reopen has created similar problems all over the world, but economists argue that Brexit has exacerbated these issues for Britain.

Labor shortages

A lack of workers is affecting a slew of industries across the country.

Britain has an estimated shortage of 100,000 truck drivers, which haulage organizations have largely attributed to a post-Brexit exodus of EU nationals. The lack of truck drivers has disrupted deliveries, leading to empty store shelves, backlogs at ports and dry gas stations, which sparked a panic buying frenzy in September that lasted weeks.

Other sectors have also warned of deepening labor shortages that are expected to damage the availability and price of goods in the runup to Christmas.

Britain’s National Pig Association has warned that up to 120,000 pigs face being culled within weeks because of a lack of butchers and abattoir workers.

In a statement on Friday, the vice president of the U.K.’s National Union of Farmers said labor shortages across the food supply chain remained acute, while the CEO of the U.K. Warehousing Association said in September that industries including warehousing, engineering and transport were all experiencing severe worker shortages.

At the end of September, the Confederation of British Industry — which represents 190,000 businesses — said its latest data showed 70% of companies were planning pay rises in a bid to tackle labor shortages.

The U.K. government has issued thousands of temporary visas for truck drivers, butchers and agricultural workers, but some critics have argued that this is insufficient to lure foreign workers.

Risk to future growth

Riccardo Crescenzi, a professor of economic geography at the London School of Economics, expressed some skepticism about the solutions being offered by the government.

“Offering three-month [visas] might not work while the rest of the EU is booming because of the injection of resources allowed for its recovery plan,” he told CNBC in a phone call. “And there is not really an unemployment problem in the U.K., so I struggle to see where drivers would come from in the domestic economy.”

Crescenzi said it was hard to know if the issues were temporary. “Some of these shortages could become structural, and this is a problem that can seriously constrain future growth.”

Sam Roscoe, senior associate professor in operations and supply chain management at the University of Sussex, warned that shortages would persist in the U.K. unless there were fundamental changes to the country’s immigration system.

“Brexit was sold as a vote on immigration independence, the U.K. labor market and making sure that everybody in the U.K. had jobs to go to, but the issue is we have 5% unemployment,” he said via telephone. “We’ve lost access to 27 member countries and the labor pool that was once available there, especially in terms of so-called low-skilled labor. I think that definitely puts us in a precarious position.”

Roscoe said it would take years to get enough Brits trained and licensed to drive heavy goods vehicles. “In the meantime, the reality is we’re going to have labor shortages unless the visa rules change.”

Spending power threatened

In a note on Thursday, Credit Suisse economists warned that U.K. consumers “face headwinds in the next few months,” including elevated inflation, supply shortages and the tightening of monetary policy.

“We think real disposable incomes for the U.K. consumer can fall by about 1.5% in 2022, the biggest fall since 2011,” the note’s authors predicted.

Helen Dickinson, head of the British Retail Consortium, told ITV News Thursday that three in five CEOs said they would have to raise prices by the end of the year due to supply chain problems. Some 10% said they had already done so.

Charalambos Pissouros, head of research at JFD Group, said he believed panic buying and supply shortages in the U.K. might also impact spending power by damaging sterling’s value.

“I see the risk surrounding the future of the British pound as tilted to the downside,” he told CNBC. “How severe any further tumble may be depends on how long the situation stays unresolved. Quick responses like the involvement of the British military could restore economic performance sooner than thought and halt sterling’s fall, and this could also allow the Bank of England to proceed freely with its tightening plans.”

Government response to crises ‘alarming’

It comes as Britain also faces an energy crisis. Several U.K. energy suppliers have collapsed since September as wholesale gas prices climbed to record highs. While the problem has affected markets worldwide, the U.K. is particularly vulnerable because of its reliance on gas; more than 22 million households are connected to the British gas grid.

Meanwhile in Europe — which is also battling rising prices — the European Commission on Wednesday published a “toolbox” that member states could use “to address the immediate impact of current [gas] price increases, and further strengthen resilience against future shocks.”

Crescenzi told CNBC that the EU can count on the strength of its single market, “which means global shocks like the gas price crisis can be dealt with more effectively with significantly more room for manoeuvre.”

“Following Brexit, the U.K. could still coordinate its response to the crisis with its most important trade and investment partner to ensure the best possible protection for its firms and citizens,” he added. “However, measures put out by the U.K. government remain unclear, let alone a strategy to coordinate with external partners. This is alarming.”

EU-U.K. relations have been under strain in recent weeks amid disputes over the Northern Ireland protocol, a special trade deal introduced to avoid a hard border between Northern Ireland and the Republic of Ireland. Officials have publicly argued on Twitter over the proposals — dubbed the “biggest source of mistrust” between both sides by U.K. Brexit Minister David Frost — and met to discuss proposed changes in Brussels on Friday.

Related Topics:
Continue Reading

Environment

Destroyed Cybertruck used in Vegas bombing is for sale, Musk said Tesla would rebuild it

Published

1 hour ago

on

March 10, 2025

By

Destroyed Cybertruck used in Vegas bombing is for sale, Musk said Tesla would rebuild it

The Tesla Cybertruck used in the Las Vegas bombing appears to have landed in an auction for sale as salvaged, still destroyed. CEO Elon Musk said Tesla would put it back on the road.

Good luck with that.

In January, a Tesla Cybertruck exploded at the Trump Tower in Las Vegas.

The driver is believed to have shot himself in the head right before the vehicle exploded. Evidence proved that some firework mortars and gas canisters were inside the Cybertruck’s bed.

Advertisement – scroll for more content

After the explosion, Tesla CEO Elon Musk praised the Cybertruck for “containing” the explosion and reducing the damage.

He even went as far as claiming that the powertrain was still working and that Tesla would rebuild the Cybertruck and bring it back on the road:

“Once we get this Cybertruck back to Tesla, we’ll buff out the scratches and get it back on the road.”

When questioned about the seriousness of this statement, he affirmed, “No, I mean it.”

They clearly haven’t yet because the Cybertruck has now shown up as a salvaged vehicle for auction on IAA’s site:

It’s not clear if Tesla had an opportunity to get the truck until now, but they certainly could buy it now.

Electrek’s Take

Good luck rebuilding the truck. Maybe they can salvage the battery pack and motors in a new truck, but there’s no way or point to salvage the chassis.

Elon has already confirmed that Tesla engineers have looked at the car. I’m sure that they had the opportunity to get it from the insurance company.

I bet that Tesla doesn’t want the car, and it won’t be back on the road as Elon claimed. You can add it to the list of lies he told this year. Are we in the hundreds already? And we are only in March.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Spacruzzi opens 2025 reservations for limited builds of its all-electric hot tub boats

Published

2 hours ago

on

March 10, 2025

By

Spacruzzi opens 2025 reservations for limited builds of its all-electric hot tub boats

What’s better than an all-electric boat? An all-electric boat with a hot tub in it. Niche boatbuilder Spacruzzi made waves (but limited wake) last year with an electric hot tub boat model showcased around the US, including Lake Tahoe and even on the Chicago River. For 2025, Spacruzzi has introduced a sleeker and more refined version of its electric boat and opened its waiting list for a limited number of builds scheduled for this year.

Spacruzzi is a marine vessel developer whose flagship product shares the same name and looks to stand out as a luxury option for both private owners and rental operators. Per the company website:

While there have been other versions of hot tub boats on the market over the years, nothing comes close to matching the experience of a Spacruzzi. From the attention to detail, luxury finishes and patent pending features to the outstanding build quality and ease of ownership – we have set out to create the most sought after experience on the water. We built Spacruzzi to provide an unforgettable experience to the end user while giving rental operators and entrepeneuers an exciting new offering to build and grow their business and it is our mission to enable this industry to thrive.

Each electric boat is designed, fabricated, and assembled by hand at Spacruzzi’s facilities in Polson, Montana. They arrive fully compliant for anyone and everyone to operate and deliver mobility technology that exceeds environmental regulations.

A previous version of the Spacruzzi electric hot tub boat appeared on the FOX game show Snake Oil, and several were put into rental operations on the Chicago River—available even during some of the colder months.

Advertisement – scroll for more content

Recently, Spacruzzi introduced an updated version of its electric hot-tub boat featuring a more luxurious look and feel. Additionally, a select few can put a deposit down to secure one for themselves this year.

Spacruzzi introduces upgrades to its 2025 hot tub boat

The images above show the updated version of Spacruzzi’s electric hot tub boat. This model is 15.6 feet long and 8.2 feet wide, with a draft of only 2.75 feet, enabling it to navigate shallow waters. When on the water, the Spacruzzi electric hot tub boat offers room for 6 passengers and weighs about 4,500 pounds at max capacity, alongside 400 gallons of water in the tub itself, which can be heated to up to 104℉.

The hot tub boat is propelled by a 3.0 Torqeedo electric motor pod that delivers approximately 3-5 horsepower, translating to 4-5 mph speeds on the water. A USCG-compliant propane heater supports the vessel’s hot tub operations, and two compartments aft of the vessel offer room for up to four lithium battery packs capable of powering the motor, heater, and internal water treatment system for up to 16 hours.

Each boat includes one battery pack that can deliver between four and five hours of running time on a single charge. Each boat also has AC charging capabilities, but Spacruzzi can add fast charging for an additional fee. Speaking of fees, Spacruzzi shared that it has opened its waitlist for its 2025 hot tub boat production schedule.

Interested individuals or businesses can secure an electric hot tub boat build with a $2,500 non-refundable deposit. When Spacruzzi is ready to assemble your vessel, it requires a 50% deposit minus the $2,500 waitlist deposit. The final 50% payment is due when the order is complete; it will be shipped to your specified destination. Spacruzzi says builds take about 90-100 days after receiving the 50% production deposit. Per Spacruzzi, the base price of its updated boat is $68,500.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Ford is plowing billions into Europe to fend off the surge of low-cost Chinese EVs

Published

2 hours ago

on

March 10, 2025

By

Ford is plowing billions into Europe to fend off the surge of low-cost Chinese EVs

Ford-Europe-Chinese-EVs

Ford is investing billions in Europe as it struggles to keep pace with the wave of Chinese and other low-cost EVs hitting the market. With another 4.4 billion euros ($4.8 billion) in funding, Ford looks to turn things around, but it’s also calling on lawmakers to do more.

Ford injects billions in Europe to fight Chinese EVs

With “significant losses” over the past few years, Ford is restructuring its business in Europe as it aims to cut costs and simplify operations.

Back in November, the American automaker said it planned to cut another 4,000 jobs in Europe by 2027, blaming “lower-than-expected” demand and mounting pressure from new EVs entering the market, including Chinese brands like BYD and SAIC’s MG.

Ford announced plans to invest another 4.4 billion euros ($4.8 billion) on Monday to support its transformation. The funds will be used to reduce the growing debt at its German subsidiary, Ford-werke GmbH.

Advertisement – scroll for more content

In a statement, the company said the new capital injection will help reduce debt at Ford plants in Germany and fund a multi-year business plan. Ford’s German unit has about 5.8 billion euros ($6.3 billion) of debt.

Ford-Europe-Chinese-EVs
Ford Explorer EV production in Cologne (Source: Ford)

Ford Motor Company’s vice chairman, John Lawler, explained, “With the new capital for our German subsidiary, we are driving the transformation of our business in Europe and strengthening our competitiveness with a new product range.”

Lawler stressed the need to “simplify our structures, reduce costs and increase efficiency” if it wants to compete. He added that Europe needs “a clear political agenda” to promote EV adoption that aligns with consumer demand.

Ford-Europe-Chinese-EVs
Ford’s electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)

Over the past few years, Ford has invested heavily in Europe to better compete, including $2 billion to upgrade its Cologne manufacturing plant to produce EVs.

The plant builds two models, Ford’s electric Explorer and Capri. Although Ford revealed its fourth EV for Europe (including the Mustang Mach-E) in December, the Puma Gen-E is being built in Romania.

Electrek’s Take

Can Ford spark life back into its European business? It’s not the only one struggling to keep up with new competition, Volkswagen is also cutting jobs in its home market and is even considering closing plants.

Chinese-brands-market-share-Europe
Chinese auto brands market share in Europe (Source: JATO Dynamics)

Legacy automakers, like Ford and Volkswagen, have been caught off guard by Chinese EV leaders like BYD’s aggressive expansion overseas to drive growth.

According to Jato Dynamics, Chinese brands are quickly gaining traction in Europe. In January 2025, 37,134 Chinese vehicles were registered, a 52% increase from the previous year. During the same time, Chinese brands’ market share grew from 2.4% to 3.7%. Combined, it would now put them ahead of Ford.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending