Brexit has been on everyone’s lips since the majority of UK adults voted to leave the European Union (EU) in June 2016.
However, with such a close vote – 51 per cent opting to exit and 49 per cent preferring to stay – there has been much controversy about how Britain will be able to detach itself from European legislation and politics.
Among the many debates the government has been trying to solve over the last two years is what the impact will be on our industries, and still Prime Minister Theresa May has yet to convince fellow politicians that the repercussions will be limited and manageable.
Scientists in the chemical sector, in particular, have been so concerned about the impact of Brexit that some have released a study into what a post-European future would look like for British chemical companies.
ResearchAndMarket.com’s paper, entitled ‘Growth Insight Series – Impact of Brexit on the UK Chemical Industry 2018’, specifically looks at the raw materials sector, examining how Brexit will affect a niche area of the industry.
A spokesperson for the study stated: “The effects of the vote began to be felt immediately in financial markets [since the 2016 referendum]. Every industry will ultimately be affected by Brexit, once the terms of Brexit have been agreed and finalised between the UK and the EU.”
While prior research has been conducted into the plastic and coatings industry and the PPE area, this document details how those involved in the tyre sector will see changes occur over the next few years.
“The study will consider whether this industry, with its unique dynamics, will be affected differently from other important chemical end-markets,” the spokesperson stated.
By looking at such a niche market, the researchers will be able to determine if the same repercussions would be felt across the industry, or if the effects are unique depending on each sector.
The issues that were raised included whether any challenges would occur even before the Brexit deadline in March; what factors would impact the automotive, tyre and raw materials industries specifically; and how will Brexit affect raw materials sourcing, production and sales if the UK detaches itself from the EU.
Without access to European markets, locations and staff, the industry may change significantly, particularly if it is less able to access parts and trade sources than it used to when part of the EU.
The study will also examine new market opportunities that might open up once Brexit comes into full effect, and if market participants will adapt to these well.
There could be useful mitigation strategies that suppliers and others in the sector could use to ensure Britain’s raw materials industry remains competitive on a global scale, particularly within Europe.
This study will make an interesting read for anyone working, or involved, with raw materials. However, it could also be useful for the entire chemical industry, with there being many unknowns about how Brexit will impact the entire sector, from toll processing to chemical manufacturing.
May has until March 29th to finalise a deal with the EU, but is still trying to persuade MPs to back the one she has come up with.
A vote will take place on Tuesday (December 11th) in the House Of Commons. However, according to the BBC, the Prime Minister’s deal is expected to be rejected, meaning ambiguity about its impact on all of Britain’s industries will continue.
