As plans for Brexit are underway, firms across Britain are pondering their futures and the implications that await in coming months and years. Although the change is likely to affect all businesses that trade within the EU, we can’t help but wonder what impact Brexit will have on the manufacturing sector.
The EU is currently Britain’s biggest trading partner, accounting for more than 50% of the UK’s exports. Although, there was a recent fall in inflation a few months ago, there are now signs that a rise in inflation could be on the way. This primarily will be a knock on affect resulting from the fall in the value of the pound and an increase in the cost of goods leaving British factories.
Narrinder Sandu, Managing Director of Djinn Ltd (Leicester based luxury clothing manufacturer) speaks to ITN news about this further:
“…whether it’s the lace we use which comes from France, or even the sewing thread we import from Germany – when you put all these things together, they are costing us roughly 20% more. Although we have not increased our prices, we have had to delay investment in areas of the business.”
All in all, the whole issue of Brexit is surrounded in uncertainty and complexity, but when the UK finally does leave the EU, it will be a very slow process, meaning any impacts will hopefully be limited. It is however recommened that smaller UK manufacturing companies prepare for changes to come by putting together well thought out contingency plans.