What does Brexit Mean for UK Businesses?
Over the last couple of months, the ramifications of the Brexit vote has been – on both sides – rather visceral. From threats of big UK businesses upping and leaving to the pound crashing, we’ve seen an incredible amount of activity ever since the big Brexit vote occurred. Britain in the EU was something that everyone knew about and had a clear idea of how it worked – so how will modern Britain handle itself outside of the EU?
More importantly, what kind of impact is Brexit likely to have on the overall outlook of British business?
The Foreign Market Has Changed
For one, the world of foreign exchange – or FX – has changed. The devaluation of the pound means that businesses dealing in exports from the UK, using currencies like the US Dollar will be punching the air. Those in the UK, though, are feeling the pinch – the pound now stretches far less than ever.
From UK football clubs noticing that their money does not stretch as far on the continent to local businesses lacking the money to meet supply and demand, we’re seeing huge change in the foreign markets.
This is why anyone involved in the FX industry would do well to turn to professionals that they know and trust for a detailed and effective resolution.
If you are worried about the foreign markets becoming a major issue, then it will be useful to get help from the right FX dealers – with a commitment to exceptional service, Indigo FX can definitely assist.
Retail is Changing
Another industry to see major, gripping changes across British business is the retail sector. This has always been a rapidly moving industry but now we can expect to see further changes.
While the initial retail sales are better than expected, it is only a matter of time before the low pound value reaches the high street.
Another situation is that for every 10% drop in the value of the pound, 3.3% is added to the price of food inflation. This means that the only winners here are going to be the supermarkets – it’s not exactly a success for the small businesses, though. Again, having smart FX options can help a smaller business to try and offset the loss they are going to be making.
Tremors in Construction
The construction industry is likely to see the same kind of confusion and uncertainty. Whilst many companies are seeing similar construction activity post-Brexit as they did pre-Brexit, there is a huge groundswell of change coming in the near future for many companies. A slowdown in the medium-term is expected, and those who are looking to invest in retirement homes may want to hold the phone until the market begins to clear a little.
There is massive demand for housing, still, given the shortages on the market. However, construction costs could become dearer by as much as 10% in the future. Again the increased cost of exporting is going to be putting a major strain on the construction industry.
Property market tremors are happening at the same time. For example, the Help to Buy scheme is going to be a major help for those who are trying to get into the real estate industry. Whilst most construction businesses will still have contracts, real estate agents might find it harder to sell a property in these austere times.
What is certain, then, is that Brexit has created a lot of uncertainty! This does not mean, though, that you have to start placing the money under the mattress. Smart FX deals with the right people, such as Indigo FX, could help to offset much of the problems that you are likely to be facing in the near future.
If you are worried about the next steps of Brexit, keeping an eye out for the finest and most effective deals is going to be an absolute must.