Will European Uncertainty Damage Exports?

The publication British Plastics & Rubber reports that the ‘CBI calls for long-term export target as UK manufacturing output strengthens‘, but will the uncertainty over the UK’s participation in the European Union damage long term opportunities?

There are passionate opinions on both sides and these are likely to get increasingly vocal leading up to a UK referendum.  Certainly the recent exchange rate movements have not helped British exporters and the forecast is for the rate to further increase the pressure on British exporters prices.

Exchange Rate
Source http://www.xe.com/currencycharts/?from=EUR&to=GBP&view=1Y

Despite all the political comments regarding the UK’s membership of the EU, Europe remains a vitally important trading partner.  However, the EU has come under increasing scrutiny and criticism from members states and their people who are starting to question its power.  The financial challenges still exist with Greece still struggling and there is a potential domino effect if they collapse and leave the EU.

At Bunting and as a UK manufacturer, we are focused on growing exports and have just started searching for trading partners and marketing agents in key markets with support from the UKTI.  Our key markets are all in the EU and we are watching the exchange rate with anxious eyes.

There are certainly challenges ahead for UK exporters and some macro environment activity that is out of the exporters hands.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s