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Strategic Analysis of BREXIT and its Implications to Industries, Economies and Societies
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Demand for PPE is Likely to be Stable in the Short Term
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This market insight provides a preview into the impact of BREXIT on the PPE Market. The impact of the devaluation of the pound on the demand for PPE is examined. In addition, it provides a preview of the impact of new immigration laws and reduced investment on the overall PPE market. The shift in customer preferences towards durable and high-quality products that offer a higher return on investment is detailed. Participants in the ecosystem (manufacturers, end-users) are responding to Brexit in a number of ways by re-examining their product mix and R&D investment capabilities.The fall-out of Brexit is analyzed through the lens of three different scenarios: (a) The Norwegian Model (b) The Swiss model (c) The independent model. The impact on GDP, trade flows and FDI is examined under each of the scenarios. This is likely to give an insight into what the various participants should consider while making decisions surrounding the location of manufacturing bases, labor force, etc. The impact of Brexit on key industry verticals including construction, manufacturing, transportation, and oil & gas have been analyzed and discussed qualitatively. In addition, the transformation that is likely to characterize the PPE landscape is discussed along with the growth opportunities that manufacturers should pursue. For example, manufacturers are likely to benefit from bringing to the market PPE that complies with the new EU directive. Moreover, as investments in energy and infrastructure are likely to increase, there is likely to be benefit in bringing to the market PPE that caters to the unique needs of end-users in the industry. Price and quality are likely to be closely re-examined by leading manufacturers so as to determine the extent to which they need to be modified for adapting to the post-Brexit environment. As the environment is likely to be uncertain for the near term and medium term, manufacturers are likely to be in a wait-and-watch mode before making investments in R&D. Decisions surrounding the location of manufacturing bases are likely to be carefully scrutinized. New product certification standards and regulations are likely to result in product upgrades.Manufacturers that are nimble to changing end-user needs and revisions to regulations are likely to be best positioned in the near term. In the long term, manufacturers that are likely to be best positioned include those that have the technical know how and business acumen to respond to a post-Brexit environment. The risk-reward proposition of new technologies is likely to be carefully evaluated while considering whether the end-user base tilts largely in favour of millennials.The post-Brexit environment is likely to push manufacturers to go back to the drawing board to bring to the market new products while carefully considering the implications to their business.
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