Which Industries Can Potentially Benefit the Most from Brexit?

Whichever side you’re on regarding Brexit, there’s no denying there will be a huge impact on across a lot of the large business sectors in the UK.

If you’re wondering which industries can potentially benefit the most from Brexit, there is a look at some of the sectors/industries that stand to gain from Article 50.

Financial Sector

There is a great deal of uncertainty around the financial sector and how businesses offering financial services will fair post-Brexit, but there will certainly be some financial sectors that benefit.

There is a real possibility of the base interest rate dropping after Brexit. This means businesses will borrow more, which might also tie in with the rise in cost of some operational expenses. Companies offering asset finance, bridging finance, and business loans look likely to benefit if this happens.

You can find out more about these specific types of loans and the impact Brexit will have on equity and debt investments into SME’s at IW Inventa.

Retail Industry

Retailers across the UK are already enjoying the benefits of the Brexit vote. Seeing the pound plummet 15% against the U.S dollar in the weeks after the referendum had a direct impact on the increase in tourism.

 

In 2018, tourist spending was up more than 20% compared to two years prior. The biggest winners were high-end boutiques and designer goods. There is a real risk of import costs rising, and we’ll see the cost finding its way to the shelves. But the retail industry stands to benefit from Brexit overall.

Housing Industry

The political fallout from Brexit will almost certainly cause some of the EU nationals and UK citizens unhappy with the decision to relocate. Whether this causes a noticeable drop in the house prices is uncertain, but all signs point towards an increase in house sales.

The clear winners here will be estate agents and other companies involved in the house moving chain. With the ripple effect reaching the financial sector in the way of mortgages, loans, and businesses for sale.

Recruitment Industry

Recruitment agencies always prosper in times of hiring and firing. A lot of jobs in the UK will be affected by Brexit. In fact, we’re already seeing some of the fallout as large corporate companies have started to relocate some of their operations to other areas within the EU.

While it’s likely to be a short-lived boom, it’s almost guaranteed that there will be a huge recruitment industry boom.

Baking Industry

The food industry, in general, is facing an uncertain future while the Brexit negotiations continue. While import costs and a lot of foods will likely increase in cost after Brexit, the demand for home-baked goods is set to increase.

This is because the baking industry does not export much, they source a lot of their ingredients locally, and there is always a demand for fresh and local baked foods.

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