Brexit has created enormous uncertainty in almost every area of British life, and its effect on business has been significant. Many businesses are existing in an anxious limbo, not knowing what kind of chaos will engulf markets when Brexit eventually takes place.
The falling pound
One of the effects of Brexit has been to weaken Sterling, which makes UK exports more attractive in some markets but also makes buying parts or materials abroad more expensive. The first reading of what has been called a purchasing managers index indicated that the service sector was in an alarming decline. The pound has dropped against the American dollar, but whether it recovers or plunges to new lows depends on the General Election. Currency speculators will be watching the outcome of the voting carefully.
Britain’s economy depends on a robust service sector as the nation is no longer a manufacturing power. For more on whether the country is going to slide into a debilitating recession, see this report in The Guardian. Brexit is also inhibiting pay growth, which in turn means consumers have less disposable income to spend on goods or services.
Other economic figures point to a falling GDP, which effectively means the economy is shrinking, and many commentators link the faltering economy with the uncertainly of Brexit. For most businesses, any kind of planning is extremely difficult without knowing if the UK will still be part of the EU. The effects on finding staff, possible tariffs and delays at borders all make doing business a lot more difficult and increase costs.
Despite Brexit uncertainty, finding an injection moulding company doesn’t have to be difficult. If you want to discover more about what the right injection moulding company can offer your business, it might be a good idea to contact a reputable member of the industry such as https://www.meadex.co.uk/rubber-moulding/ to get more guidance and advice.
As the Brexit saga rumbles on, the climate for all businesses in the UK remains challenging. However, Brexit is not a reason to give up and stop trading. It is making conditions adverse, but forward-thinking, innovative businesses can find ways to deal with these factors and possibly emerge at the other end stronger, leaner and more competitive. However, most business people will be relieved when the Brexit issue is finally resolved.