The Potential Impact of Brexit on the Electronics Industry
Effects on UK Industry
In the face of the consequences raised thus far, many large electronics companies have voiced concerns about continuing their operations in the UK. Should they follow through on these concerns and move out of the UK, this would also have a halo effect on their peripheral supply chain companies, which may have been set up specifically to fulfil larger companies’ business requirements. The worst case scenario would be the UK losing a large part of its electronics industry, which would start a domino chain reaction and have massive ramifications for the country’s economic growth.
Yet not all large companies are shying away from the post-Brexit UK market. Rob Hammond, CEO and Chairman of Hammond Manufacturing, comments: “Hammond is a global company and as such we are proactively positioning ourselves as needed to serve our customers, whatever direction Brexit takes. Both the UK and EU represent large and vital markets and we at Hammond will support our regional and international distribution partners.”
Conclusion
As Brexit approaches, the uncertainty facing the electronics industry is best dealt with through extensive planning. As many industry representatives have done, making arrangements for the worst case scenario of a hard Brexit is a wise choice. Manufacturers, suppliers and distributors should ensure that their production and supply chains will either be unaffected by Brexit or make the necessary preparations to continue their operations.
Yet, the European Union and the United Kingdom are connected by a valuable trading partnership and their dependency on each other will not be erased from one day to the next. There will likely be a grace period after Brexit comes into effect and the anticipated changes outlined so far will not be made immediately. And once there is clarity on what exactly Brexit will mean, the European electronics industry will continue to evolve in its wake.
In the face of the consequences raised thus far, many large electronics companies have voiced concerns about continuing their operations in the UK. Should they follow through on these concerns and move out of the UK, this would also have a halo effect on their peripheral supply chain companies, which may have been set up specifically to fulfil larger companies’ business requirements. The worst case scenario would be the UK losing a large part of its electronics industry, which would start a domino chain reaction and have massive ramifications for the country’s economic growth.
Yet not all large companies are shying away from the post-Brexit UK market. Rob Hammond, CEO and Chairman of Hammond Manufacturing, comments: “Hammond is a global company and as such we are proactively positioning ourselves as needed to serve our customers, whatever direction Brexit takes. Both the UK and EU represent large and vital markets and we at Hammond will support our regional and international distribution partners.”
Conclusion
As Brexit approaches, the uncertainty facing the electronics industry is best dealt with through extensive planning. As many industry representatives have done, making arrangements for the worst case scenario of a hard Brexit is a wise choice. Manufacturers, suppliers and distributors should ensure that their production and supply chains will either be unaffected by Brexit or make the necessary preparations to continue their operations.
Yet, the European Union and the United Kingdom are connected by a valuable trading partnership and their dependency on each other will not be erased from one day to the next. There will likely be a grace period after Brexit comes into effect and the anticipated changes outlined so far will not be made immediately. And once there is clarity on what exactly Brexit will mean, the European electronics industry will continue to evolve in its wake.
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