How will Brexit affect lighting, manufacturing and construction?
Brexit, COVID and Lighting
A weakened economy and low levels of consumer confidence following Brexit and the coronavirus outbreak has led to limited value growth in the lighting market as fewer new build and large renovation, maintenance and improvement projects have taken place.
Furthermore, the coronavirus pandemic is expected to have resulted in a 11.3% reduction in industry revenue, in particular from the construction industry. The types of products sold by the industry are also expected to have shifted from more costly items, such as lamps, to cheaper and more essential luminaries.
Brexit and Supply chains
Brexit has been a notable hurdle in supply chains for many companies around the world and it’s expected that this will continue for some time to come.
In addition to affecting the way suppliers and their customers do business around the world, Brexit has also impacted how goods travel from one place to the next, according to Global Trade Magazine. This affects not just overland trucking, but also air and sea freight.
It is expected that Brexit will accelerate the transition to a more sustainable and locally based supply chain approach within the built environment.
Easy Reconfiguration
Professor Noble Francis notes that only 24% of construction products used in the UK are imported but, of those that are, two-thirds come from the European Union. He states: “Keeping the trade flows going after 31 December was essential to ensure that imported products such as timber, roofing materials, white goods, paints and varnishes continued, and activity in housing remained buoyant.”
The trade deal will enable construction companies to continue forecasting the cost and availability of products/ materials imported from the EU or comprising components made in the EU. The mutual co-operation in respect of reducing technical trade barriers and co-operation at the border will also undoubtedly help to avoid some of the risks of delay and disruption.
Brexit and Manufacturing
Disruptions of links with the EU now that the transition period has ended, such as through customs delays, have the potential to harm UK manufacturing companies.
In a new report on manufacturing, existing evidence was reviewed with regards to what effects Brexit will have on the UK manufacturing sector, covering ten key areas: tariffs, rules of origin, non-tariff barriers, regulatory alignment, geographical indications, data protection, state aid, skills, research & development, and uncertainty and investment.
Overall, the evidence, including the opinions of most manufacturers, is that the effects will be disruptive and negative. However, the extent to which this will be the case will crucially depend on the outcome of the Brexit negotiations.
Overall, there will be immediate teething problems from Brexit, delays and concerns around the UK leaving the EU, however, there are some long-term positive effects for UK residents. Boris Johnsons decision to push through Brexit is also likely to have saved the UK from a huge financial bill from the EU, amid fears that countries in the EU could demand billions of euros from member-states as part of a huge coronavirus bailout.
