The impact of Brexit on selected industries
In today's edition of the Financial Times, there is an article stating that 75% of the impact of Brexit will fall on just 5 sectors in the EU and the UK.
These sectors are financial services, agriculture, automotive, food and drink, and chemicals and plastics.
The estimated cost to EU exporters would be EUR 35bn a year, and EUR 30bn for UK exporters. The agricultural sector in Ireland would be severely impacted, whilst 4 German states would suffer 75% of the impact for all of Germany - Bavaria, Lower Saxony, Baden-Wurttemberg and North Rhine-Westphalia. Within the UK, the largest impact would be felt in London.
Whilst large exporters are testing the exposure of their suppliers to these potential changes, smaller companies have not yet made any preparations. The largest impact for small firms is that most of them have never traded outside of the EU. Research showed that more than 65% of German and UK companies trade exclusively within the EU. This translates to 65,000 companies with business models that will be affected after Brexit.
Do you need help in understanding the impact of Brexit and what alternatives you have, please let me know.