Unless you have been living under a rock since 22nd of June 2016 you will be fully aware of Brexit, albeit slightly less aware of what this means for UK citizens, businesses and more specifically the landscaping industry. In this blog post I will give a brief explanation of what has happened to the economy following the referendum and outline the effects of Brexit on the industry.

 


Before the referendum result had been declared many economists predicted an immediate and significant shock to the UK economy and consumer confidence if the country voted to leave the EU. However, in stark contrast to this the economy grew by 0.6% between July and September. This increase was largely due to the expansion of the services sector which grew faster in the following three months after Brexit than the period before the referendum. Although at the same time the construction, agriculture and manufacturing sectors contracted which somewhat marred the overall growth.

 


As the value of the pound fell the general view was that exports would increase, although the Office for National Statistics indicated that this was not the case. The UK's deficit actually increased towards record levels in the third quarter with little indication that exports would increase as the value of the pound continued to fall.

 


Whilst some businesses have profited from the volatility in the markets, LSD and the majority of stone importers predominantly source sandstone and limestone from India and granite from China.

The importance of this point being both countries trade in dollars and with the value of the pound falling against the dollar by approximately 20% in the months following the referendum, the cost of importing stone significantly increased. By November 2016 we had received letters from a number of suppliers notifying us of price increases to products with more following at the turn of the year.

 


There has also been a significant increase in the cost of shipping with a number of shipping lines going out of business, the cost of shipping is expected to remain at these increased levels throughout 2017.

 


In the months following the referendum and the uncertainty which came with it we absorbed as much of the rising costs as possible. However, the combination of increased costs in importing and shipping have left us with little choice but to increase our prices. We will continue to strive to offer the highest quality service and maintain the strong relationships built with our customers. We look forward to continuing to supply new and existing customers with the highest quality landscaping supplies.

 


How have you been affected by Brexit? Has your company felt the grip of rising costs or do you think it will provide a much needed boost British manufacturing and trade? Please feel free to let us know what your opinion of post Brexit Britain is in the comments section below!