There’s currently a lot of speculation regarding Brexit, if it will go ahead, and what it means for industries. Here’s what we anticipate it could mean for removal companies, particularly international removals companies. To be honest, Brexit’s consequences are difficult to predict, however, we can make some assumptions and educated guesses about its possible effects. If we leave the EU, the removals industry will likely experience positive, but also negative outcomes.
Domino effect in the property market
The effect of Brexit is likely to be significant on the property market in the UK. Removal companies may find themselves negatively impacted by this outcome. Brexit will likely cause economic instability particularly in the short-term. Instability will mean people find it more difficult to purchase property. It’s reasonable to suggest this will mean more people staying in their current accommodation and not needing removal services. The law of supply and demand means we’ll have a surplus of removal companies looking for bookings and less jobs available so profit margins will be put under pressure.
In order for removal companies in the UK to operate smoothly, they often need to move freely across Europe. After Brexit, free movement will become problematic. UK removal companies may look to build better relationships with EU removal companies to create mutually beneficial partnerships. Companies will likely need to complete more procedures and paperwork before they are allowed to cross the borders. This will delay the process and cost removal companies more time and money. UK nationals, who move to the EU and later decide to move back to Britain, will possibly be more inclined to hire a local European removals company to avoid the perceived complications.
All countries involved in the EU have benefited from the trading agreement between the European countries and the United Kingdom. This has allowed free tariff trading agreements for our removals companies. If Brexit goes ahead, companies will need to negotiate new agreements. This makes the UK vulnerable to unfavourable tariffs when they deliver services to European countries.
Labour force changes
Being part of the EU, UK companies have the right to use an experienced workforce from all over Europe. Unfortunately, Brexit will likely create complications for British businesses, including our removals companies. Potentially this could be seen as good news for unemployed citizens. It will possibly open more job opportunities for the currently unemployed.
More citizens moving
The increase of British people wanting to move abroad is one short-term positive of Brexit for removals companies. Should you stay or should you go? This will possibly result in a small increase in bookings of removals companies. EU nationals who now live in the UK may feel unstable in their residency and choose to move home. This could result in mass-migration for the short-term, meaning more work for the removals industry.
According to the referendum results, the UK voted in favour of leaving the EU by 52%. Only Wales and England voted to leave the European Union by the majority, while all Scotland and Northern Ireland councils voted to stay in the EU with a majority of votes.
We all hope citizens and businesses will benefit from Brexit if we choose to go ahead. Of course there will be a time for us all to recalibrate and prepare for the future. After a couple of turbulent years, we hope for economic stability to be restored. We cannot tell for sure what the outcomes of Brexit will be – we are cautiously optimistic that a good decision will be made for the benefit of us all.