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Britain
British companies absorb Brexit shock, get on with business for 2017
2016-12-18
[Reuters] Richard Bunce says he felt sick when voters decided to take Britain out of the European Union in June, forcing him into a emergency review of his firm's expansion plans.

But six months on, orders are strong and a new growth plan is in place, according to Bunce, managing director of Mec Com Ltd which sells devices to protect against power surges to clients such as Siemens (SIEGn.DE) and Alstom (ALSO.PA).

Far from the "profound and immediate economic shock" predicted by Britain's finance ministry in the event of a vote for Brexit, the economy has, so far, barely slowed. Bunce expects tougher times. But like many other executives trying to push their Brexit worries to one side, he invested - nearly half a million pounds on a new laser-cutting machine over the summer.

Now he plans to spend another 750,000 pounds ($932,000) on robotic metal-working equipment at Mec Com's plant near Stafford, a town 135 miles (217 km) northwest of London, after landing a big contract with a British food processing firm.

"We believe that the opportunities we have got will, one way or another, find a way around Brexit," Bunce said.

To be sure, what Brexit means is far from clear. Britain is due to begin its two-year divorce process with the EU early next year. Agreeing its new relationship could take a lot longer. Bunce is taking precautions in case his firm ends up facing tariffs on its exports to the EU. He recently traveled to Romania to discuss the possibility of expanding his company's existing unit there in the event of a "hard" Brexit.

"If that happens then we would need to find a way to switch very quickly, but as things stand we are planning for more UK business," he said.
Posted by:Besoeker

#2  Max WTO tariffs are 4% which is vastly less than the costs of being in the EUSSR
UK buy more than it exports so tariffs would hurt EUSSR more than UK.
Posted by: Bright Pebbles   2016-12-18 14:21  

#1  'Brexit shock' - talk about a non-event!
Posted by: Raj   2016-12-18 12:24  

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