It's on the front page of all the newspapers every day and it comes up in conversation all the time but what are the real issues that the lighting industry will face if there is a no-deal Brexit? There are many facets to the impact of a no-deal – as well as a lot of scare-mongering and we will try and give some insight here as to what we should really be thinking about:
Import/Export
Novah’s products are manufactured and assembled in China and the UK so in broad terms our products and imports for the UK market should remain unaffected, whatever deal is or isn’t arranged. We have done some contingency planning to cover the fact that the UK ports might be a little bit chaotic for a few weeks in April but our haulage companies and import agents have assured us that whatever the outcome, for Novah, it should be business as usual.
Currency fluctuation
The dollar/sterling rate has been painful over the last 18 months for anyone bringing goods from China to the UK and we can’t be sure that Sterling won’t drop further if there is no deal. This would have an impact on prices, which, as always, we would try to mitigate as much as possible. The good news is that if there is a Brexit deal, there is a good chance that Sterling would strengthen and we would pass on any savings to our customers.
Demand in the economy
Will there be a recession?
If so, who will be hardest hit?
These are questions that anyone in the construction related industries will be asking themselves. We are continuing to offer energy-saving, innovative products which we hope would be recession-proof. If companies are trying to save money when times are tough, looking at energy consumption should be a no-brainer, particularly when the returns on investment are typically less than 1 year.
Let us know your thoughts and concerns over Brexit and we are looking forward to working with our customers over the coming months to overcome any challenges that the macro-political and economic situation might bring.
