Regardless of how you voted in 2016 you are probably sick and tired of the ongoing Brexit saga and the ever increasing political machinations as the exit date draws closer. There are a lot of seasoned, clever and well informed pundits opining on the likely outcome and the impact on both the UK and Europe. So far be it for me to try and second guess the big picture but it is worth providing you with a view from On Line’s perspective.
Brexit and Technology
Many of the large IT vendors and manufacturers are headquartered outside the UK, a good number in the US. The currency fluctuations caused by the uncertainty around Brexit have already seen price increases as these businesses seek to stabilise their revenue from the UK. Cynics might say that this is opportunism but it is happening. Price rises are likely to be a feature in the technology sector post Brexit. Much of the IT infrastructure purchased for business is manufactured outside the UK. Additional tariffs, recession and uncertainty in the currency markets will have an impact.
We are also seeing a large number of the technology giants setting up bases in Ireland, in what is likely to be the last English speaking country in Europe. A good few UK businesses are also taking this step to hedge their bets. It is difficult to see what impact this will have on the technology market in the UK other than lower job creation.
If the doomsayers are to be believed there are also likely to be delays in importing goods into the UK. Just in time supply chains could suffer disruption. Some of the IT distribution businesses are undertaking contingency planning that will include ensuring they have enough stock for the channel. It is clearly not as critical as medicine or food but in a worst case scenario there may be shortages of some devices. We will update you.
Recessions are cyclical and occur roughly every 10 years as the economy corrects from the excesses of the good times. The financial crisis started in 2007/8 and was deeper and longer than anything in my memory so we are about due another. Unfortunately the next one will be self-inflicted but, like the last, London will trade through it and it will be the provinces that feel the real pain. On Line Computing will be open for business as usual.
Following the vote in the House of Commons on Tuesday 15th January, it does now appear that a no deal Brexit is more likely in March. On Line Computing is speaking to its suppliers to see if there is any material impact that everyone should be aware of.