A Reuters article talks today about the UK Business Minister’s focus on EU trade ties, this is focus during the aftermath of the Brexit vote.

The United Kingdom has now voted for Brexit and this could well have significant implications in the long term, even though we don’t fully know what they are at this point in time. The political fall-out in both of the major political parties along with the uncertainty has already had an impact on markets with the pound falling against major currencies resulting in likely inflationary pressures on many imported commodities into the UK, including petroleum. The flip side of this, of course, is that value added within the UK will be cheaper for the UK’s export markets.

The availability or limitations of investment funds and the locations where investors are prepared to apply them will also change and changing positions are already emerging within the first week. 

So far, we’ve seen a mini-wave of supply chain back peddling and strategic review request from manufacturers that have UK origin or important supply chain elements. It’s obvious that more of this will follow.

The upshot of all of this is that the relative cost of different supply chains will change and uncertainty about future trade links could result in companies re assessing their risk analysis on their supply chains. We will be focused on the most dynamic areas of the economy and we will be commenting on this in the coming weeks. As always, at least in some cases pain can lead to opportunity with the right information.

Read the Reuters article:  http://www.reuters.com/article/britain-eu-javid-idUSU8N197016