PA’s Tim Lawrence, head of manufacturing, is quoted in an article in the Financial Times which looks at the winners that have emerged following Britain’s vote to leave the EU.
Due to the sharp fall in the value of sterling since the day of the referendum, overseas buyers of property, corporate lawyers, some exporters, stock market investors and the tourism industry are feeling the benefits.
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Tim comments on the motor industry where some manufacturers could hold their euro selling prices to increase profits or reduce prices to gain market share. However, he says that there could be an unexpected problem: “In reality, 50 to 60 per cent of the costs of a manufacturer on average these days are in materials they buy and a large proportion of those come from overseas.”