How Britain leaving the EU will affect the service, repair and maintenance markets?
With today’s historic vote resulting in Britain’s exit from the EU, there is much uncertainty around how this will effect different market sectors trading in and around the EU. As a predominantly British service provider PPSPower provide service, maintenance and repair to our British clients across the nation. Whilst leaving the EU will not directly affect our customers, we aim to review what the Brexit means for our trading partners and other businesses facing uncertain trading futures.
At present two-fifths of British trade is in the servicing market and an overall fifth of the EU’s trade comes from services. For years’ fierce political negotiation has taken place regarding the liberlisation of the trade sector within the EU, with figures showing an estimated €295 billion increase if the EU service market becomes more liberalised. With Britain claiming independence from the EU, they now have an opportunity to expand their avenues beyond the constraints of current EU legislations. The Brexit has opened Britain up to further possibilities of more comprehensive trade agreements with emerging countries, positioned outside of the EU. Whilst it is uncertain how some of the UK markets are going to be effected it seems as if the vote is in the favor of those within the service division.
So should Britain prioritise expanding services within Europe or concentrate on the rest of the world?
As a leading maintenance, service and repair provider PPSPower buy parts from some of the biggest generator manufacturers in the world including Cummins, JCB, MTU, CAT, SDMO, YorPower and FG Wilson. 89% of the parts purchased by PPSPower are manufactured outside of the EU in rapidly developing countries such as China. Whilst the EU market place is conveniently positioned for import and export through England, larger developing countries can offer cheaper more competitive rates. Figures taken back in 2012 evidenced that British trade with the rest of the world overtook its trade with the EU proving there are further opportunities awaiting GB.
As a respected nation Britain have some advantages that have very little to do with the EU.
“it is a very open economy, and it is easy for foreign investors to own or start up British businesses. It has capital markets & a large number of publicly listed businesses; it’s citizens speak English – all of which make it an attractive place to invest”
What happens now
There is no overnight dramatic conclusion to Britain leaving the EU. There are many negotiations still to follow and whilst Britain will no longer be subordinate to the EU, there is no doubt that the nations will continue to remain close allies. Trading throughout Europe will continue as it always has, but the way in which negotiations and relations are conducted will alter and hopefully for the benefit of the country.