Brexit’s impact on industry – GlobalData experts give their views

22 March 2019

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Here are some of GlobalData’s key analysts by sector and what they have said on Brexit this year:

Pharma

Gavin Davidson, Pharma Analyst at GlobalData, a leading data and analytics company, offers his view: “GlobalData’s latest report, ‘Brexit and the Healthcare Industry – Implications for Pharma, Q4 2018’  reveals that 66% of participants across the US, UK, and EU said that it would take more than three years for the UK to stabilize its healthcare industry. This stabilization is of high importance, with the UK pharmaceutical industry contributing £70bn to the economy.

“Without a free trade deal being agreed upon prior to departure, the UK would no longer have access to the EU single market, meaning pharmaceutical companies, such as AstraZeneca (AZ) and GlaxoSmithKline (GSK), and patients on the NHS that are dependent on imported medications are stockpiling medications.”

Retail

Thomas Brereton, Retail Analyst for GlobalData, a leading data and analytics company, offers his view: “The supply chain chaos caused by a no-deal Brexit would force food inflation in 2019 to rise from 2.4% – forecast under a soft Brexit – to upwards of 5.1% as prices increase across core categories such as fresh fruit and vegetables.

“There has simply not been enough information provided by the government on how food prices, availability and regulations will be affected in the event of a no-deal Brexit. The just-in-time supply chain that UK supermarkets operate on means that there is not the specialist infrastructure in place to deal with stockpiling – particularly of fresh goods.”

Technology

David Bicknell, Principal Analyst, Technology Thematic Research, “Countries like Ireland, the Netherlands and Germany have become a magnet for tech businesses on the move. Some UK firms are taking minority stakes in German companies in order to establish an EU base. As well as attracting technology companies, some countries have found there is a market for providing essential business services post-Brexit. In France, for example, a new appeals court in Paris opened last year to resolve international commercial disputes using English and common law practices.

“The table below summarizes our five Brexit scenarios and the corresponding outlook for six tech sectors: hardware, software, internet, TV, telecoms operators and space. It is based on interviews with specialists on key issues in each sector.”

 

 



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