© filipefrazao84 dreamstime.com_ Electronics Production | June 27, 2016

#Brexit – all you need to know

As you surly know, the UK voted whether it should leave or remain in the European Union on Thursday 23 June, and as most of you already know, leave won by 52% to 48%. But what does this mean for our industry?
Several companies have already comment (and more surly will) on the outcome of the referendum and what it – might – mean for their operations in the country.

The UK is a manufacturing nation, and with the gateway to Europe closing slightly with the exit from the European Union, how will this affect the companies operations.

Car manufacture Ford – which employees about 14'000 people in the UK, said according to The Guardian that it will do whatever it takes to remain competitive.

“While Ford will take whatever action is needed to ensure that our European business remains competitive and keeps to the path toward sustainable profitability, we have made no changes to our current investment plans and will not do so unless there is clear evidence that action is needed.”

Airbus is another company what is not entirely pleased with the outcome of the vote. According to the Guardian, Chief executive, Tom Enders, said that: “This is a lose-lose ‎result for both, Britain and Europe.” Adding that the world will not stand still, nor will Europe. “I hope the divorce will proceed with a view on minimising economic damage to all impacted by the Brexit.”

“We are currently examining the effects of leaving the EU on our business."
Germany's Bosch stated in a press release that the company is disappointed by the decision by the UK to leave the world’s largest single market. The company goes on stating that the long-term economic consequences will only become apparent gradually.

“We are currently examining the effects of leaving the EU on our business. In addition, we have already put precautionary measures in place. For example, we have significantly raised our hedging ratios in order to counteract a possible depreciation of the British pound. We currently do not have any plans to scale back our capital expenditure in the United Kingdom,” the company writes in the press release.

The UK is currently Bosch’s second largest European market after Germany. In total, Bosch employs some 5'300 associates at 40 locations (including seven manufacturing locations) in the UK.

Siemens has also released a statement regarding the vote saying that, the government must now move swiftly to unify and agree on the nature of the UK's relationship with the EU and other trading partners.

“Siemens remains committed to our business in the UK. We have been active in the UK for more than 170 years, with locations throughout the country. Today, we generate revenue of around EUR 4 billion and employ about 14'000 people. With 13 manufacturing sites, Siemens has a strong local footprint in the UK.”

In an email conversation with UK CEM Texcel Technology, Commercial Director Peter Shawyer, told Evertiq that; "The eventual outcome of the recent vote, for Texcel and the electronics sector in the UK is uncertain, but in the short term we are preparing for high volatility of component prices as this can cause CEMs great difficulty and we need to manage this carefully."

Mr. Shawyer is pointing to a really interesting and potentially huge problem as many suppliers have moved their stores into main land Europe, and the question is, just as Mr. Shawyer puts it; "will they now setup UK based stores or shall we suffer additional import delays?"

Taiwanese electronics company Acer, which records about 30% of its revenues from Europe, expects the outcome of the referendum to affect the company's operations in Europe as it has already seen some impacts on exchange rates, DigiTimes reports.

According to the report, Acer CEO Jason Chen, said that the company will try to strengthen its operation and minimise the impact from the potential changes.

The article will be updated as new information becomes public.


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