We at Actisense felt it important to clarify possible concerns in light of Brexit (the UK’s exit from the European Union on the 29th March 2019) and how this may affect some of Actisense customers and suppliers. Therefore, below is an overview of Actisense plans to manage and avoid any disruption, as a result of either a deal or no deal Brexit.
Current Situation – Brexit
Following the result of the UKs EU referendum in June 2016 there have been countless articles on the debate, but never has it been suggested that either the UK or remaining EU states are expecting to go on strike and cease work. Instead, the main talking point is focused primarily on potential tariffs, more administration and therefore possible delays at the border between the UK and the EU.
The UK is due to leave the European Union on 29th March 2019, negotiations between the UK government and the EU are currently on-going. However, the decision to leave the Customs Union could be extended with a 21-month transition period until 31st December 2020 (the transition period is dependent upon the EU and UK agreeing a full withdrawal treaty before March 29th 2019).
Brexit focus areas
In our initial risk assessment, we have identified a few key areas of focus for a potential Brexit impact, including:
- Customer service and supply chain
- Financial performance, including the potential impact of tariffs
- Cash and financing
- Employees and mobility
- Regulatory frameworks and compliance
Our ongoing framework
As a manufacturer we rely heavily on suppliers from all over the world and therefore we hold relatively high levels of stock of fast-moving product. Most of our materials are sourced globally, with viable alternative sources if required because of any EU disruption. Of course, Actisense will continue to work with our EU supply base maintaining the good relationships established over many years.
Economists are forecasting a significant drop in the value of £GBP in the short-term, but this will also be the case for the Euro, bringing about a level of parity to the exchange rate. The overall strength of the UK economy suggests that any regression will be short-lived, as was the case when the UK voted to leave the EU.
The Brexit negotiations are still on-going, and we still await specific industry details, but we are committed to keep abreast of the latest announcements and we will inform our stakeholders of any potential changes to our service via our website.
Finally, we wish to reassure our partners of our ongoing commitment to continued trade, in the UK, within the EU and with our other export markets.