The UK’s decision to leave the European Union will have a knock-on effect right across the country and will influence many industries who have ties with Europe. One such industry that will feel the full force of Brexit is the construction industry. Sales of construction equipment in the UK are expected to fall with a rise in costs given the sharp depreciation of the Pound.
There is a substantial amount of construction equipment sold in the UK that is manufactured in Europe and according to Off-Highway Research, this equates to around 70% with other European countries being the most important suppliers.
The depreciation of the Pound could give UK-made construction equipment a price advantage both here and outside of the UK. This particularly applies to articulated dump trucks (ADTs), backhoe loaders and telescopic handlers, all of which are produced in large numbers in the UK in terms of the overall world market for these types of construction equipment.
However, the industry should not be focusing solely on the negative impact that Brexit may have but it should present an opportunity for the UK to science control over contractual risk and law clauses. Compliance throughout the UK is incredibly high and Brexit should not affect this too much.
One fear for construction equipment supplies is that once the UK leaves the EU it could lead to the removal of some regulations which were outlined by the EU but ties should not be broken with the UK and they are likely to follow the processes and product standards.
Brexit has undoubtedly got many industries in the UK nervous about what to expect or what their future looks like. The construction industry will be planning for the worst-case scenario and formulating contingency plans in place to protect their business from the unknown. Whatever the outcome, Brexit is likely to shake up the entire construction industry.
After Brexit, there may be duties or limits on the quantities of materials that are used in the manufacturing of construction equipment. These tariffs would be targeted at the importers and exporters and could lead to a shortage of materials or an increase in the costs.
If you have any questions about how Brexit will affect your construction equipment supplies get in touch with one of the FOC Sales team here or call us directly on 0330 122 9002 or email firstname.lastname@example.org We will be more than happy to help!