Good news seems pretty rare for UK based businesses at the minute. With Brexit on the horizon, it is easy to fall into the trap of only seeing the negatives, and that is why today’s news about UK manufacturing growth improving in September is something to be cheerful about. The industry standard Purchasing Managers’ Index or PMI – a barometer of manufacturing growth in the UK – raised to 53.8 from 53.0 in August (a score of more than 50 indicates growth). The news shows that UK manufacturing is actually faring well in the face of some tough trading conditions. There also appears to be growth in employment in the manufacturing sector as well, this comes as SMEs continue to offset the losses of jobs from larger companies. This redistribution of the workforce may well prove a huge help to the UK once the country leaves the European Union and trading conditions worsen.

 

Sterling Rises on Good Manufacturing News

 

The value of Sterling also rose on the good news coming from Britain’s manufacturing sector which will be welcomed in the city. Currently, good business news is in short supply as the media cycle is dominated by Brexit. The worry for many is what happens after the UK leaves the European Union in March next year. For many, the acid test for Britain’s success outside of the union is going to be how well it manages to keep its export customers. The potential reintroduction of tariffs mean that the UK is going to be a more expensive country to trade with in the future.

 

The rise in Sterling is also good news after an extended period of gloom that has hung over the currency since Britain’s decision to leave the European Union in 2016. Sterling dropped to its lowest level for many years in the aftermath of the shock referendum result, and has barely recovered since. The value of Sterling isn’t all bad news, for foreign customers, the fall in Sterling has helped to make the UK a cheaper supplier than it had been previously and has helped keep exports buoyant. Whether this remains after Brexit is going to be a guess.

 

Making the Most of Brexit

 

The uncertainty around Brexit is a concern for many businesses. On one hand, many businesses deal across borders, for these companies the next 6 months will be vital to their future. There is also the wider issue of freedom of movement. A mainstay of EU countries, freedom of movement allows businesses the flexibility to bring in staff from all over the union to work. After Brexit, companies will have a potential staff shortage and this is likely to push up wages and increase competition for staff.

 

There is little doubt that the next 6 months are going to be difficult for many businesses and many of them will be putting expansion plans on hold. But if you want to expand your business and are worried, why not make the most of your current premises? With innovative storage and mezzanine floor options, Spaceway have a solution to fit every business. The design team here at Spaceway are experts in their field. Innovative and experienced, they can work in partnership with you to design a solution that works in harmony with your business needs. If you would like to discuss our range of options, please call us today on 0800 085 1022 or contact us on our contact us page and a member of our team will get right back to you.