Impact of Brexit on Business: in particular what it means for mechanical engineering as in Palletizing?


Machine manufacturer Verbruggen (Palletizing Solutions) has been commercially active in the UK since 1991, but something has changed in recent times. Sales to Britain have increased throughout 2018 on a way which is primarily due to the fact that UK choose for Brexit. Verbruggen seems to have benefitted from this, so apparently not all businesses suffer from the Brexit.

So, what is going on?

Amid the persisting uncertainty of Brexit, companies operating in the UK are taking the sensible course – preparing the loss of labour force. According to Ton van ‘t Hof, account manager for the UK, handling works such as stacking bags, crates & cartons, and loading & unloading at UK factories are often dependent on the supply of labour from overseas.
With Brexit, cheap laborers are forced to leave, or are having great difficulties entering the UK for working purposes. Factories therefore face a great challenge as any reduction in the supply will be serious with impacts far reaching. With UK governments’ support, millions were granted to UK agricultural industry, intending to help local companies adapting the economic consequence caused by Brexit.

Since the Brexit voting, we received an increasing number of inquiries from the UK.

These are either large exporting manufactures, packing houses or even small-scaled agricultural farms. By and large, these businesses that are reliant on labour force, now not only find it difficult to find local labour, but they also have to pay them more. UK factories have to be prepared smartly, by investing in new automatic handling solutions.” Says Ton.

Without Brexit, the agreement on the free movement of goods between UK and EU countries would remain benefitting to UK factories.

This because it would allow them to avoid paying import duties, taxes and customs clearances. How the trade regulation will be changed after the Brexit is still uncertain at this stage. But businesses continue to purchase machines from Verbruggen because it is anticipated that importation can become more expensive.

Verbruggen has been active in the UK market since the early 90’s where we continue to strengthen network relations. Ton concludes: “We now have multiple agents and service partnerships in UK because of the increased activity. We closely follow the news regarding Brexit, as this strongly impacts us as a supplier”.