Manufacturers ponder consequences of leave result

WHILE the vote for Brexit was a personal choice, businesses will have to live with the consequences for a long time to come.



With the Government pinning so much on its devolution policies ahead of the referendum, the impact of today’s result on strategies such as the Northern Powerhouse is likely to be significant.



However, now more than ever, the importance of having a powerful manufacturing industry is critical to the future of Britain’s economic fortunes as the UK stands alone in the world.



Ahead of the referendum, many big businesses had spoken about the likely impact to the economy should the country vote to leave the EU.



Many of these were manufacturers, an industry which provides so much added value to the UK economy, will now have to reassess supply strategies and future investment plans.



Late last year, Jaguar Land Rover – one of those backing Remain – signed a Memorandum of Understanding with Slovakia on plans for a new factory.



What will happen to that plan now is unclear, although a more global model with investments in China, India, Latin America and the Middle East may now be adopted.

But by means everyone in the industry was in favour of staying in the Single Market.

Terry Scuoler, CEO of EEF, the manufacturers’ organisation, said: “While it is not the result many businesses wanted, it’s the democratic will of our nation.
“The Government must move very quickly to stabilise the economy, reassure the markets and shore-up business confidence.

“The process of leaving the Union will take some time, and the Government should not rush to instigate Article 50 and the formal exit process, while there is so much uncertainty.

“Ministers must think carefully about our negotiating position while setting out a clear roadmap for establishing a new deal with the EU which remains our biggest market and trading partner.”