After the result of the Brexit vote, many were
left wondering what the UK leaving the EU was likely to mean for the export of
British goods abroad. Certainly, there are signs that the weakening pound is
helping British exporters to improve their competitive position, which could in
turn drive demand for Warehouse Storage space as sales grow.
A
fall in the pound’s value may not be bad news
Although the widely received wisdom is that a
declining pound spells bad news for the UK, many observers have pointed out
that this may be far from the case.
John Wraith of UBS, for instance, has suggested
that those exporting outside of the EU will be “in a much stronger competitive
position” as a result of the weak pound. Meanwhile, Nordea’s AurelijaAugulyte
has said that “assuming the recent relationship between exports and currency
development holds and sterling weakness is sustained”, exports could rise by
more than 5% on a year-on-year basis.
While there are certainly losers from the weak
pound, such as foreign firms exporting to the UK and British holidaymakers
travelling abroad to the EU and US, there are also many recognised winners,
including – a little ironically, given the debates about immigration that drove
the vote – foreign investors and tourists, as well as the UK firms that earn
profits abroad.
Sterling
weakness could provide a welcome boost to exporters
It could yet be British exporters, however,
that stand to gain the greatest benefit from the declining pound, on the basis
that when foreign buyers need less currency to purchase the same quantity of UK
goods, British exporters will be able to sell their goods for less and/or boost
their profit margins.
If, as many expect, the weaker pound does
indeed provide a significant boost to British manufacturers and exporters, those
offering Warehousing
Fulfillment Storage Services may be advised to brace themselves for
heightened demand in the years ahead.
Here at Bis Henderson Space, we are proud to be
able to bring together companies in possession of warehouse space with those
that require warehouse space. Whichever of the for mentioned categories your
own business may belong to, our assistance and contacts can help to put you in
the best position to benefit from any boost in exports as a result of the
pound’s fall.