Open Menu

Main Menu

×

Blog

<< Back to all articles

Which Industries Are Most Likely To Be Affected By Brexit?

Published on: 2/08/2018

According to most political commentators, “No Deal” is as likely now as at any time during the Brexit negotiations. With 43% of UK exports in goods and services going to countries within the EU, losing preferred access to the single market could have disastrous effects on the industries that rely on it the most.

Plimsoll, the global market analysts, have revealed the 10 UK industries that are most at risk from a “No Deal” outcome of the Brexit negotiations. The companies have a high percentage of companies already in financial difficulty and have a high proportion of companies that rely on export.

Industry

Ave Profit Margin

% loss making

% in Danger

% of cos exporting

Oil & Gas

1.2%

43%

31%

41%

Internet Service Providers

4.1%

30%

35%

35%

Marine Contractors

2.8%

37%

38%

37%

Luxury Goods

3.3%

33%

39%

55%

Secure Payment Solutions

5.4%

30%

34%

34%

Subsea Engineering

2.7%

39%

31%

56%

Clothing Designers

2.2%

31%

32%

63%

New Media

0.1%

46%

31%

54%

Biotechnology

5.9%

38%

37%

41%

Turbine Systems

3%

37%

36%

57%

Confectionery Retailers

1.7%

31%

36%

64%

 

Christopher Evans, Senior Analyst at Plimsoll says, “The chances of us leaving the EU without a trade deal appear to have increased significantly of late. While some openly welcome such an outcome, for many in some of the UK’s key markets, it will make a tough job even harder”.

“Many UK industries rely on the frictionless trade and common regulations that being in the EU affords them. That could all change on Friday 29th March 2019 and a number of markets are most exposed to any interruption”.

“Take Biotechnology or Turbine Systems; two industries that benefit enormously from cooperation and common regulation. However, over a third of each industry is showing signs of financial weaknesses with 41% and 57% of companies relying on exports respectively. Loss of access to such an important market as the EU for even a short period would see a huge spike in company failure across these markets”.

“Whether it’s tariffs or loss of preferential access to the single market, many companies in these key industries just aren’t in a position to ride out any prolonged disruption. These markets, and their main protagonists are the most vulnerable to a “No Deal” outcome”.

<< Back to all articles