{"id":335,"date":"2017-02-02T12:54:32","date_gmt":"2017-02-02T12:54:32","guid":{"rendered":"http:\/\/www.plastikcity.co.uk\/blog\/?p=335"},"modified":"2024-01-29T15:09:42","modified_gmt":"2024-01-29T15:09:42","slug":"brexit-should-we-export-or-stop-importing","status":"publish","type":"post","link":"https:\/\/www.plastikcity.co.uk\/blog\/brexit-should-we-export-or-stop-importing\/","title":{"rendered":"Brexit \u2013 Should we Export, or Stop Importing?"},"content":{"rendered":"

By Simon Anderson – MD of LVS Small Plastic Parts<\/em><\/strong><\/p>\n

Like most SME\u2019s, the Brexit vote came as a shock to LVS Small Plastic Parts last year.\u00a0 As part of the larger business community, we felt that a status quo would be the best outcome for the manufacturing sector.\u00a0 Our own business being so heavily aligned to the automotive sector helped to reinforce this opinion.<\/strong><\/p>\n

<\/p>\n

Since the vote, the rhetoric coming out of central government has been that \u201cBritain is open for business\u201d, that \u201cwe need to make our way in the world\u201d, and that \u201cwe need to increase our exports\u201d. \u00a0What it means for me is opportunity<\/strong>.<\/p>\n

I sit on a committee within the SMMT that reports directly into the Business Department in Whitehall.\u00a0 The figures quoted for the value of UK exports and what the automotive industry itself is worth, are vast!<\/p>\n

The figure I prefer to concentrate on, is the amount that the OEM\u2019s identify they buy from outside of the UK,\u00a0<\/strong>that they would prefer to buy from the UK<\/strong>.\u00a0 This figure runs into \u00a3billions!\u00a0 Some of the more specialised industries are no longer available within the UK, but as a plastic injection moulder, LVS can certainly play its part in reducing this figure.<\/p>\n

It is to this opportunity that we decided to align our primary business strategy.\u00a0 Reshoring has been around since Lehman Brothers went in 2008. Business lost control and ultimately felt that they needed to source external production closer to plant, particularly as the perceived savings were lost when all factors were correctly accounted for.\u00a0 A large part of our growth curve since that point (500%) has been due to UK companies wanting to source more product locally.<\/p>\n

Since the Brexit vote, we have seen a dramatic further acceleration in demand for reshored product.<\/p>\n

Why? Well forex costs are now a main driver, the devaluation of Sterling having added massive increased costs to companies’ P&L accounts.<\/p>\n

So while central government is telling the business community to get out and export more, I have decided to look slightly closer to home, to understand which companies around us are looking to bring their cost basis back under control.<\/p>\n

Particular focus varies, but other considerations include:<\/p>\n