In the Brexit special edition of ‘Manufacturing on the hop’ Lee focuses on what the vote to Brexit means for UK manufacturing.
Looking at the results of our recent EU referendum survey, Lee explains how, so far, there hasn’t yet been an impact on the manufacturing sector, apart from a confidence hit.
Podcast guest Troy Barratt, MD of Contracts Engineering Ltd, gave his views:
Another issue concerning manufactures have been swings in the exchange rate, which Lee explains is a double edged sword. This was echoed by Alan Purvis, MD at Mettler Toledo:
“The majority of our sales are in foreign currencies (and this) converts into an increase in sales revenue. On the other hand, our manufacturing cost is significant and we probably face approximately a 5% increase in material costs.”
Manufacturers are also wary of the cloud of political uncertainty that followed the referendum, and what happens next is a concern that was also voiced by Andrew Churchill, MD of JJ Churchill:
“The downside of the Brexit that is immediately felt is the turmoil and uncertainty. But we’re not seeing customers make any changes in their investment decisions yet. The sense I’m getting is that my customers are waiting to see how successful our government is at negotiating continued access to the single market.”