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Could The Depreciation Of The Pound Boost Demand For Warehouse Storage Space? by Smith Lara






Article Author Biography
Could The Depreciation Of The Pound Boost Demand For Warehouse Storage Space? by
Article Posted: 12/30/2016
Article Views: 658
Articles Written: 2232
Word Count: 390
Article Votes: 0
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Could The Depreciation Of The Pound Boost Demand For Warehouse Storage Space?


 
Consumer,Business,Public Speaking
After the result of the Brexit vote, many were left wondering what the UK leaving the EU was likely to mean for the export of British goods abroad. Certainly, there are signs that the weakening pound is helping British exporters to improve their competitive position, which could in turn drive demand for Warehouse Storage space as sales grow.

A fall in the pound’s value may not be bad news

Although the widely received wisdom is that a declining pound spells bad news for the UK, many observers have pointed out that this may be far from the case.

John Wraith of UBS, for instance, has suggested that those exporting outside of the EU will be “in a much stronger competitive position” as a result of the weak pound. Meanwhile, Nordea’s Aurelija Augulyte has said that “assuming the recent relationship between exports and currency development holds and sterling weakness is sustained”, exports could rise by more than 5% on a year-on-year basis.

While there are certainly losers from the weak pound, such as foreign firms exporting to the UK and British holidaymakers travelling abroad to the EU and US, there are also many recognised winners, including – a little ironically, given the debates about immigration that drove the vote – foreign investors and tourists, as well as the UK firms that earn profits abroad.

Sterling weakness could provide a welcome boost to exporters

It could yet be British exporters, however, that stand to gain the greatest benefit from the declining pound, on the basis that when foreign buyers need less currency to purchase the same quantity of UK goods, British exporters will be able to sell their goods for less and/or boost their profit margins.

If, as many expect, the weaker pound does indeed provide a significant boost to British manufacturers and exporters, those offering Warehousing Fulfillment Storage Services may be advised to brace themselves for heightened demand in the years ahead.

Here at Bis Henderson Space, we are proud to be able to bring together companies in possession of warehouse space with those that require warehouse space. Whichever of the for mentioned categories your own business may belong to, our assistance and contacts can help to put you in the best position to benefit from any boost in exports as a result of the pound’s fall.

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