For a long time, what is happening in regards to Brexit has been unclear, to say the least. With the deadline day for Brexit being continually pushed back and with no clear message emerging from Westminster, industries have been unsure how to prepare for several years now.
It’s becoming apparent that construction could be one of the industries that are affected the most as a result of Brexit. The uncertainty over what the actual process will be, and now, even who will be leading the UK over this time, is causing and could continue to cause issues for the industry.
Building Blocks
The construction sector needs materials, it sounds basic because it is. However, this simple, essential factor might be under threat due to Brexit. Basic supplies for tiling, roofing and other necessary materials may be unavailable as some of them will come from the EU.
Stockpiling is already happening, however, how much to hold onto and for how long for remains an impossible question to answer for companies that need to know. On the other side of this equation are the the UK suppliers who could be able to capitalise on this change. With more building and construction projects in the works than ever before, the simple aspect of procuring supplies may still be up in the air for some workers in the construction industry.
Home-Grown Talent
With a sector that’s so reliant on workers from EU nations, it may seem like the industry will be losing a huge swathe of experienced talent overnight. However, this itself also presents a great opportunity for UK based talent to rise to the top. By harnessing, nurturing and developing UK-based specialists it could be a great opportunity for the sector to flourish and remain sustainable for years to come.
Initially, the industry may be restricted due to the loss of migrant workers or movement being restricted in some yet unknown way. In turn, this could lead to labour costs increasing as skilled UK workers are not as prevalent as EU workers. One of the ways to get around this is to offer a greater number of educational and vocational training by offering apprenticeships. This will be vital to maintain the high number of construction projects which both companies and the government wish to see.
Steps that need to be taken
Businesses should have been already taking precautionary steps to protect themselves ahead of Brexit, however, with the date constantly moving and no clear sign of when it will actually happen, planning becomes almost impossible. Despite this, there are some things that a company or workers can do to ensure they are at least somewhat protected for the unknown.
Monitor your cash flow more carefully than you usually would. Pay close attention to the cost of labour, parts, supplies alongside the expected timeframe to be able to properly protect your business further down the line. By planning ahead you’re less likely to find yourself in trouble at a later date. Remember: If it feels like your stretching yourself thin, you most likely are.
Regularly update your accounts. Having audits can be an effective way of making sure you can plan ahead. This will allow you to assess whether taking on large-scale projects will possible based on your financial situation and will also help protect you from any industry changes that might emerge post-Brexit. This will also ensure you are able to pay HMRC on time.
Seeing as construction is one of the industries most likely see insolvency problems, especially if the Brexit uncertainty continues on for a prolonged period. Due to this, the best thing a company can be moving forward is prepared. By adopting a careful approach, being aware of your supplies, materials and finances as well as looking to encourage talent growth through apprenticeships, construction firms big and small can look to prosper amidst the Brexit instability.
youcoblog.wordpress.com 