BREXIT: What now for UK manufacturing?
Now that the dust is beginning to settle following the UK voting to leave the EU, it is clear that it will take some time to determine what the economic infrastructure will be once we do finally reach the point of exit. One immediate effect, however, is the initial fall in value of the Pound. This is potentially good news for exporters and it coincides with the current ‘exporting is GREAT’ campaign by UK Trade and Industry aimed at encouraging UK businesses to export their products. If you have not already explored the opportunities that exporting could bring, or discovered what assistance UKTI can provide, then now is a good time to do so.
The flip side of a weak pound is that imports are more expensive. Unless you are fortunate enough to have limited your exposure to currency fluctuations with fixed exchange contracts, or holding spare cash in euro accounts, then perhaps this could be an additional factor that makes ‘on-shoring’ more attractive for bought-in components and materials.