ISC Brexit Statement
We have been asked by many of our customers and suppliers what the ISC provision is for a ‘no deal’ Brexit. Like many other companies, we would welcome a settled and formal agreement negotiated between the UK Government and the EU, and ISC will act on those outcomes if they are forthcoming.
However, in the event of a ‘no-deal’ outcome to the EU withdrawal negotiations and in response to an increasing number of customer enquiries on the matter, ISC have drafted the following statement on how a ‘no-deal’ Brexit may impact on our business activities.
Following the result of the EU referendum back in June 2016 there have been countless articles on the debate, but never has it been suggested that either the UK or remaining EU states are expecting to down tools and cease work. Instead, the main talking point is on potential tariffs, more administration and therefore delays at the border between the UK and the EU.
ISC has traded globally since the company was first established and therefore, we are highly experienced and conversant when it comes to paperwork and administration. Any changes to the administrative process for the movement of goods will be managed efficiently by our teams.
The majority of our customers are not based in the EU and those customers that are will only being marginally affected by any raw material issues arising. Our customer base in the EU is likely to be affected in some way in the initial period, but we do not anticipate major disruption in the mid to long-term.
As a manufacturer we rely heavily on raw material and therefore we hold relatively high levels of stock on fast moving product. The recently resurrected British Steel is now a very viable and effective supplier, giving us the option to switch from EU to UK supply, if the need arises. Our other materials are sourced globally, with viable alternative sources if required to any EU disruption. Of course, ISC will continue to work with our EU supply base maintaining the good relationships established over many years.
Economists are forecasting a significant drop in the value of £GBP in the short-term, but this will also be the case for the Euro, bringing about a level of parity to the exchange rate as a whole. The overall strength of the UK economy suggests that any regression will be short-lived, as was the case when the UK voted to leave the EU.
We are confident that we are fully prepared to meet the short-term disruption caused by a ‘no-deal’ Brexit and will be more than able to continue to provide the excellent service our customers have come to expect.
We will update this statement as and when more information comes into the public domain that significantly changes our position on the matter.