Hard Brexit could have adverse impact on foreign investment in UK

A hard Brexit, favoured by some members of the current government, could have a significant adverse impact on foreign direct investment (FDI) in the UK, according to new research by Sheffield Hallam University.

Academics in the University’s Business School assessed the different possible outcomes of the Brexit negotiations and the potential impact they would have on FDI in the UK.
The research has been published following a week of key speeches by the Prime Minister and Chancellor.

They looked at four potential scenarios including current models used in Switzerland; the Norwegian model within the European Economic Area (EEA); a Free Trade Agreement (FTA), or the fall-back option of the World Trade Organisation (WTO), which would be the loosest relationship with the EU.

The research concluded that a hard Brexit, the WTO outcome, could lead to 15-20% less FDI into the UK over a 15-year time frame. The negative impact of a softer Brexit, with the EEA outcome, would be in the range of 5-10%, while with a Swiss style or FTA outcome, the negative impact would be in the range of 10-15%.

They also looked at impacts on specific sectors, including the car, technology and financial industries.

The research envisages significant impacts in the car industry, depending on the Brexit outcome, given the integrated supply chains in the sector.  Under an FTA outcome, there could also be potential challenges for the UK in terms of different product standards.

A recent study, referenced in the research, asserted there would also be a negative impact on the financial services industry, with gross value added (GVA) reduced by 5.7% by 2020 under a FTA Brexit outcome, and 9.5% under a WTO outcome.

The research found that a positive impact of Brexit could be some geographical rebalancing of the UK economy, away from London and the south east towards areas such as the Midlands and the North. This is because foreign investments in these latter regions tend to be in order to increase sales in the UK, with such investments potentially less adversely affected by Brexit.

Dr Jeremy Head, lead researcher and principal lecturer in International Business at Sheffield Hallam, said: “The Brexit vote has led to a complex and uncertain situation regarding the future of inward FDI into the UK.

“There are a range of possible outcomes of the negotiations between the UK Government and the EU, which would all have significantly different impacts on FDI in different industries and regions.

“Harder forms of Brexit will have large negative impacts on inward FDI, but even softer forms will have significant impacts in some sectors and some regions.”

 The research is an Article in press in Global Business and Economics Review.

Notes to Editor

 A copy of the research paper is available from the press office on pressoffice@shu.ac.uk

Source: Sheffield Hallam University, March 2018

 

Get up to Speed – BUSINESS BREAKFAST & NETWORKING EVENT

“MANUFACTURING OUR FUTURE – DRIVING THE SKILLS AGENDA”

FREE TO ATTEND FOR ANY BUSINESS
Wednesday, 18th April 2018, Magna Science Adventure Centre, Magna Way, Templeborough, S60 1FD

Event Timings
7:45 am Registration, breakfast sandwiches & refreshments
8:15 am Presentations and Panel Discussion
9:15 am Networking & Preview of Exhibition

Welcome and Opening Remarks
Ken Cooke – Master Cutler, The Company of Cutlers in Hallamshire
John Bohan – Senior Director, Engineering & Manufacturing, Elevation Recruitment Group

Keynote Speaker:
David Richards CBE – Chairman of Prodrive and Chairman of the UK Motor Sports Association (MSA). Former Chairman of Aston Martin, Benetton and BAR Formula One Teams.

The State of Manufacturing and Future Skills Needs Panel Discussion
Host – Will Stirling – Editor The Manufacturing Review & Director Stirling Media.
David Richards CBE
Julie Kenny CBE DL – Successful entrepreneur, Board Member of the Sheffield City Region LEP, Commissioner to Rotherham Council and Chair, Wentworth Woodhouse Preservation Trust.
Rachel Abbot – Managing Director Cobra Sport Performance Exhaust Systems and Chair Freemans Committee of the Cutlers Company.

Closing Remarks
Richard Caborn – President, work-wise Foundation

Followed By
Get up to Speed Exhibition Preview

Booking Essential: Please book your place here

Sheffield City Region forging links with India

Access India Programme

India is one of the priority target markets for Sheffield City Region, and new trade relationships are already actively being forged.

The Sheffield City Region recently organised an Access to India event in March in conjunction with the High Commission for India in London, the UK India Business Council and the ERDF Exporting for Growth Programme.

The High Commission of India in London’s flagship Access India Programme is the first of its kind for supporting UK businesses access the Make in India initiative of the Government of India, seeking to identify high-potential UK SME companies and assist them in establishing themselves in India.

For these companies, the programme will provide a detailed programme of activity, mentoring, networking opportunities and market entry support services, including

  • Strategy advisory
  • Operational market entry support
  • Tax & legal support
  • Financial services
  • Project financing
  • M&A, location services
  • Technology collaboration
  • Facilitation of approvals from central and state agencies will be provided.

For more information, visit the Access India Programme website here

Shorts partner EXACT cloud accounting

Shorts are delighted to announce our partnership with software company Exact to offer its cloud-based accounting and industry software combined with customer relationship management (CRM) solution.

Who are Exact?

Exact are Europe’s number one cloud business software for SMEs. Providing comprehensive, integrated and perhaps most importantly scalable solutions to target the requirements of companies in the manufacturing and wholesale distribution sectors without the need for multiple apps / solutions.

Why choose Exact?

In recent years, the cloud accounting software market has become more saturated, with most providers targeting small businesses looking for entry level accounting solutions. While Exact can compete in this space, what makes it different is the scalability and the industry specific focus of the software. Exact offers cloud software solutions for larger businesses particularly those working within manufacturing and wholesale. Some of the key advantages of the software are:

  • Integration between manufacturing and accounting.
  • Provides order and real time inventory management.
  • Built in CRM system.
  • Gives a complete 360-degree view of your business.
  • Unprecedented control over your manufacturing.

Some of the more specific benefits to manufacturers and wholesalers include:

  • Create shop orders direct from quotations, orders and stock positions.
  • Track time and material consumption along with subcontracted work.
  • Serial and batch numbers to improve traceability.
  • Multi-warehouse and storage locations.
  • Multi-level BOMs.
  • Mobile app improves efficiency on the shop floor.

Here at Shorts we have long been advocates of cloud accounting solutions and the addition of Exact to our portfolio enhances our client offering especially for those larger manufacturing and wholesale companies that require scalable industry specific solutions. This collaboration along with being a fully certified Exact partner also means we can provide clients with a more personalised end to end service from the initial scoping stage to the final implementation.

For more information and a FREE Consultation please click here

UK CAR MANUFACTURING STABLE IN JANUARY – SMMT

UK car manufacturing stable in January, as exports growth offsets decline in domestic demand

 

  • UK car manufacturing stable in January, declining -0.05%, with just 72 fewer units produced year on year.
  • Exports growth drives overall output, with record 119,252 British-built cars shipped overseas – up 1.5%.1
  • Production for UK buyers declines for sixth consecutive month, down -6.0% to 28,229.UK car manufacturing output held steady in January, with just 72 fewer vehicles produced than in the same month last year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). Output in the month fell by a negligible -0.05% year on year, as 147,481 cars rolled off production lines – effectively maintaining the nine year high set in January 2017.

    Exports drove overall volumes, with output for overseas customers rising by 1.5% to a record 119,252 units. This was in line with continued recovery across EU markets and followed the launch of several key global models throughout 2017.

    The growth offset a decline in production for the UK market, which fell for the sixth consecutive month, by -6.0% to 28,229, reflecting falling UK business and consumer confidence and confusion over government policies on diesel taxation and air quality plans

For full article and graphs:  SMMT, 28th February 2018