As Brexit looms closer it seemed the uncertainty has continued to affect huge swaths of the Uk economy. As we all know our Newsfeeds have been full of Brexit talk over the past couple of months and this seems set to continue. Primarily due to no
As the date of departure looms closer it seems many industries have begun to take stock of its impending impact. Various companies and industries have been slowing down or stalling altogether throughout the UK.
There has of course been announcements from global companies such as Toyota and BMW and the governments of neighbouring
In this piece, we are going to look at just a few announcements in the past few days all of which are related to Brexit and its wider impact.
UK construction takes Brexit hit
This was the headline in the Guardian on 04/03/2019. With the uncertainty of Brexit, both commercial and private building plans have slowed down over the past couple of months. That coupled with manufacturers stockpiling supplies means builders cannot get their hands on material quick enough.
This was noted as the first decline in 11 months for the construction industry as recorded by Markit. Builders placed the blame on decision makers among commercial builds and supplier performance. This slow down has had the added effect of fewer job offerings in the construction sector.
BMW and Toyota announcement
Meanwhile, both BMW and Toyota announced that no deal Brexit could impact future investment in their factories within the country and that they may even consider moving some manufacturing to other EU states.
Speaking to Sky News, BMW board member Peter Schwarzenbauer said if a “worst case” no-deal scenario happened, “we would need to consider what it exactly means for us in the long run”.
Mini is the main concern for BMW at the moment. The compact car is currently manufactured just outside of Coventry. As with the construction industry, both materials and the logistics in transportation are two key areas that must be considered in the event of a no deal Brexit.
Many spokespeople for the car industry cited the difficulties in remaining competitive should a no-deal Brexit emerge. With production costs and tariff increase, a likely scenario maintaining big presences within the UK may not be feasible.
Investment has already seen a decline and Japanese giants Nissan has recently reversed a new manufacturing plan although they said this was not related to Brexit.
Meanwhile, this leads us
In an interview with Sky News, Koji Tsuruoka said Japanese companies had been cutting back on investment in the UK amid the uncertainty.
He stated that although many of these companies are looking to expanda they are being cautious due to the uncertainity of the market.
“Many of those possible potential investments are being put on hold right now because they can’t really convince investors that these are the right investments today” he continued in his interview.
With over 1000 Japanese companies in the UK, the ambassador warned that many are looking at alternatives to a no-deal Brexit withdrawal.
With no formal trade agreement between Japan and the UK finalised at the moment, it
Some good news
There was a small bit of good news during the week. For those in the car industry, it was welcome. Vehicles sales rose for the first time in six months. It was by a small margin but very welcome considering the announcements from manufacturers.
The Society of Motor Manufacturers and Traders (SMMT) said 81,969 new cars were registered in February reported the Guardian. As
“February’s rise in car sales is another reminder that households’ spending likely will keep growing in the first quarter, ensuring that a retrenchment of business spending due to Brexit risks won’t tip the economy into a recession,” said Samuel Tombs a UK economist.
As we continue into March it will seems that news of this caliber is set to rise. Hopefully the impact will not be as bad as some predict but just as the people in this report it is difficult to know.