Groups ponder Brexit effects

News Story
- 30 Jun 2016 ( #776 ) - London, United Kingdom
3 min read
The UK has voted to leave the European Union
The UK has voted to leave the European Union
The UK materials handling market is being urged to watch the situation and plan for the impacts of Brexit after last week's dramatic referendum that saw 51.9% of citizens voting to leave the European Union.

Peter Ward, chief executive officer of the United Kingdom Warehousing Association (UKWA), admits the outcome was not one his group had been expecting.

"In my view, this momentous decision by the UK will have serious global implications, bringing new challenges for British businesses and particularly for those within our industry.

"Many of our members trade across Europe and have enjoyed the benefits of 'logistics sans frontiers' for 40 years, with goods entering and leaving our country freely.

"My hope now is that as new trade agreements are forged, there is no return to red tape and complex customs regulations that prove burdensome and costly for UKWA members," he says.

Peter Harvey, chief executive of the FLTA, agrees the decision to leave the EU is a significant one. "There's no doubt that there will be significant changes ahead which will affect all of us in the UK - for better or worse.

"As an industry comprising more than 1,000,000 people, from manufacturers and dealers to those on the 'front line', we must pull together to achieve the best results.

"In these early days, our main objective is to ensure our members - and the wider industry - are represented and kept informed with clear, concise and relevant guidance," says Harvey.

James Clark, Secretary-General of BITA, says the past week has been tumultuous for the country as a whole, but for the forklift truck industry it is very much a case of business as usual.

"There will obviously be ramifications in time as the schedule for the extrication from the European Union becomes apparent, but the process could well take months or even years so until that point our members will be committed to their existing processes and relationships. Our technical work continues and we have already begun internal processes to evaluate the impact of the Leave decision on our members and will use our global technical insight and influence to not only minimise its impact, but also to pursue the most favourable UK trading conditions.

"Our sector has weathered various storms in the past such as the lengthy global financial crisis and other economic threats and emerged all the stronger for it and we are confident that the industry can adapt to the evolving political climate and continue to be successful. With 2015 seeing the sector finally return to pre-recession levels in terms of orders and shipment for counterbalance and warehouse trucks, we are keen to keep this momentum going. We look forward to discussing this and other relevant issues with our friends and colleagues from the industry at IMHX in September."

The FEM, which represents the European materials handling sector, has also expressed disappointment. "FEM believes that the EU and the UK are stronger and better together than apart. Therefore, FEM regrets but respects the decision taken by the British people to leave the European Union," says secretary general Olivier Janin.

"FEM strongly supports barrier-free business in Europe and hopes that the future relationship between the UK and the EU will maintain seamless trade. The UK is an important European partner and must remain so."

Janin adds that the UK leaving the EU has no impact on his association since FEM statutes do not differentiate between EU and non-EU members, only referring to Europe from a geographical point of view. "FEM British member BMHF has also indicated that its commitment to FEM and its Product Groups remains intact."

For UKWA's Ward, there is no going back. "We must now hold our nerve and plan for the future, not take a small island introspective view, but instead look to claim our place on the global platform."
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