shentongroup Brexit Strategy
If everything proceeds as planned the United Kingdom will officially end its membership of the European Union (EU) on the 29th March 2019. Like all other businesses in the UK at the present time, we have no real idea how this may or may not affect our industry.
What we do know, is at shentongroup we are committed to providing the excellent customer service, top quality products and services that we have become known for.
Regardless of the potential turbulence of the changing macroeconomic environment, we will continue to understand your needs and will continue to deliver on our promises.
In reviewing the potential risks associated with “Brexit”, we have identified the following areas and have moved to ensure they are rectified.
European Supply Chain
From time to time shentongroup engages with European suppliers. We are in close talks with these suppliers and can confirm they wish to continue dealing with us post Brexit and they themselves can see no reason why our current strong trading relationship should be affected. With this reassurance, and a strong UK based alternative supply chain, we are confident we can continue to supply the products and services you require.
European Trade Agreements
Whilst we are satisfied with our European supply chain, clearly we will be bound by any trading agreements the two Governments implement, and we will respond further on this matter when these agreements are known.
Product Availability/Lead Times
We, or our suppliers, see no reason why product availability or lead time will be affected by Brexit. However, over the past year we have been increasing our stockholding and will continue to do so over the coming months to help prevent any such issues.
All of our key component suppliers are global companies operating in all regions, and we can confirm that product conformity will not be affected in any way by Brexit.
We are fully aware of our responsibilities regarding staff nationalities and rights to work and will be working with any staff affected by this to ensure they are legally able to work in the UK post-Brexit.
Currency Instability/Price Increases
Whilst we foresee no price increases per se, we will be at the mercy of currency fluctuation and any tariffs imposed by either Government. We are working closely with our foreign currency provider and engaging in contracts that will minimise any currency fluctuation as much as possible.
We trust the above serves to reassure you that we are aware of the “potential” risks, and are doing all we can to mitigate them.
Should you wish to discuss any of this in more detail, please don’t hesitate to contact me.
Thank you for your ongoing custom.