Paul French, chief executive officer, Metamark
It is difficult to offer advice as to how to prepare for ‘something’ when the shape of the ‘something’ is circular in the view of some, square in the view of others, and totally unknown if both camps were to be honest with each other.
Metamark is The Materials Company. We make, we are told, great digital media, sign vinyl, and so on. We supply it on a reliable, timely basis and at prices people are happy to pay. Come the day, none of that is going to change. When we get up on the morning the ink has dried on the Brexit agreement, whatever the Brexit outcome, the sky will still be above us and the earth will still be beneath our feet.
The advice I would offer is to stay true to your values and continue to sell to quality”
We do not know at the moment whether some of the raw materials we buy will be impacted by new trade conditions or how that will affect the material we send to our customers. We are going to plan to the extent we can, but we will always be delivering the best value we possibly can come what may and all-round performance that can be trusted.
How can sign-makers prepare? The advice I would offer is to stay true to your values and continue to sell to quality. There may be a lot of what you would call ‘churn’ in the business fraternity post-Brexit as companies come to terms with our new role in the world. I would like to think there will be some opportunity wrapped up in there somewhere for sign-makers. If someone has something new to say or sell, there is usually a job for a sign-maker attached to it.
Time of analysis
Martin Horne, managing director, Trotec UK
It is a question that many of us are debating and contemplating on at the moment. We all wish we could predict the future, and as trade talks have only just begun, the next year or so will be an interesting one for us all.
There are so many different impacts from Brexit that could offer both risks and opportunities for the UK sign industry, such as the opportunity to access new markets if new trade deals are agreed with members outside of the EU, and the risk that the EU is the UK?s biggest trade partner and we are waiting to find out what kind of trade deal we will end up with.
Sterling has been impacted since Brexit, which may make exports cheaper and in turn may make the UK sign industry more attractive to overseas businesses. Equally, UK businesses could look to source more internally, given that the weakened Pound has made foreign imports more expensive.
Labour is another subject, as possible restrictions of free movement of people within the EU could create resourcing issues in manufacturing and other parts of our supply chains, or drive wage costs up as UK workers expect more pay. Therefore, outsourcing of labour could increase as companies try to keep a level on their regular cost base.
Now is the time for directors and business owners to look critically at their own business plans”
Until we have a clear understanding of our position once trade talks have been completed, it is difficult for any of us to have firm plans ahead, so now is the time for directors and business owners to look critically at their own business plans and think strategically about the right paths for their business, so businesses can adapt quickly to what happens over the next year or so.
As we await the final deal ahead, I have always valued the saying from a prominent business leader, that ‘if you keep your products superior and never diminish your quality, you will remain strong through obstacles’, which is very much the approach both our clients and Trotec Laser take.
Key questions
Jonathan Humphreys, finance manager, Signmaster Systems
It is difficult to make specific preparations for Brexit when very little is known about the changes that will take effect and the timescales involved. Many sign-making businesses will have already started making preparations where they have customers and suppliers in other EU countries and deal in Euro as well as Sterling. On the other hand, some smaller operations may be of the opinion that they will see very little if any difference as they are UK focused.
However, they should be asking themselves a few key questions and considering what measures they might need to take.
Are any of my staff members likely to see a change in their right to work in the UK?
If so, then those staff may already be planning for the future and looking to move. This is undoubtedly one of the most sensitive areas, but conversations may need to be initiated.
Where are my key suppliers sourcing their materials/components from?
If the answer is ‘within the EU’ then changes to trade regulations could have a significant effect on their costs, and the effect will be felt along the supply chain. It is always best to have other supply options so that if one becomes more expensive, there is somewhere else to turn.
Will changes to laws and regulations affect my product?
For those sign-makers with specific markets (e.g. health and safety), there may be changes to the required format of their products, such as colours, font types, and sizes. Ensuring compliance going forward could require additional staffing or expertise.
The key is to plan ahead and keep refining those plans as the situation develops”
Ultimately, planning for Brexit will be an ongoing process for all UK businesses as the negotiations progress. The key is to plan ahead and keep refining those plans as the situation develops.
Maintaining standards
David Catanach, director, British Signs and Graphics Association (BSGA)
No one can say with 100 percent accuracy what the trading terms will be between the UK and the EU after 2019. However, if taking this aspect into consideration when trying to predict the future, you must also factor in what trade deals there will be with other parts of the world and, probably more importantly, what the state of the UK economy will be in 2019 and beyond.
In other words, it will be challenging adapting to any changes, but the general feeling is that the sign industry will continue to operate and adjust accordingly—as it does on a day to day basis right now.
There has been a tremendous amount of work done across the UK sign industry for four decades on improving standards, in health and safety and industrial regulations through the EU, which I hope will not be thrown away in a post-Brexit Britain.
The main criteria from a BSGA perspective will be not to allow a reduction in standards and throw away all the excellent work done over the last 30 to 40 years”
The main criteria from a BSGA perspective will be not to allow a reduction in standards and throw away all the excellent work done over the last 30 to 40 years. The BSGA Technical Committee looks at this not just from a product standard point of view, but also to the health and safety and wellbeing of those employed in the industry.
A key positive to take away is that when times are challenging it often brings out the very best in the grafters of our industry, and those firms that pro-actively respond to these changes, with the customer remaining the very centre of their focus, will thrive. Those who rely on price alone and perhaps do not do the best for their customers will find they will struggle to carry on if the economy does slow down significantly during the re-adjustment to being out of the EU.
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