
“What kind of future awaits British
business following Brexit...?”
Perhaps surprisingly, given the strength of
feeling surrounding the results of the
referendum, the answer to the question above
from IoD West Midlands Chartered Directors
gathered at MalMaison in Birmingham for a
round-table discussion on the key business
issues of the day, was by and large a rosy one.
While currency fluctuations means the cost
of imports have risen, net exporters have been
notable beneficiaries, and this is likely to
continue in a global market that (in size and
scale) far exceeds that of Europe. There was
praise too for the UKTI for its “Great Britain”
Campaign that aims to promote the innate
strengths of British brands overseas. Rachel
Eade MBE encouraged all businesses to link
with the #GREATBritain campaign. Dr Jason
Wouhra said that exporting was the way ahead
for East End Foods: “We see exporting as the
way to grow the business. We aim to grow the
business five-fold.”
Even where British brands now fall under
foreign ownership, provided manufacturing
remains on home soil, consumer confidence
remains undented.
Steve Boswell of S3 Process said brand
strength is a powerful weapon in exporting. “It
is critical and can bring success in a niche
market.”
However, that’s not to say the discussion
didn’t reveal challenges post-Brexit. The need
for skilled workers has led to many British
companies recruiting abroad, and there is
growing concern among European workers
about their future job security following
Britain’s exit from the EU. Some sectors,
particularly healthcare, were highlighted as
particularly vulnerable and these concerns were
seen as pressing.
It was a concern Bal Dhanoa of Progress Care
was particularly keen to stress.
There is also the wider issue of falling
business confidence – as evidenced by the
determination of many to build their balance
sheets and keep investment to a minimum –
that needs to be urgently addressed in the
immediate aftermath. The reasons are wide
ranging, but the ongoing political fall-out, a lack
of leadership and the Bank of England’s
determination to drop interest rates were seen
as particularly significant. The Government, it
was felt, needs to act to help bring stability as
soon as possible.
Stuart Laight, Aspray24, said his principal
fear was over volatility in the market, and
stability had to be established as soon as
possible.
But it seems the fall-out from Brexit is far
from the biggest challenge we, as a society, face.
The advent of the digital revolution and advance
of technology across the globe will, it was
agreed, create far greater disruption for British
businesses than any restrictions around access
to the Single Market.
Described as a ‘quantum change’ within the
debate, the scale of the challenge here and its
impact on business is already becoming
apparent. One analyst at the recent IoD
Convention claimed there will be 650,000 UK
digital job vacancies by 2020. Added to which,
around half of the current job stock will be
changed by technology in the next 20 years,
making it imperative all employers are ready to
reskill their workforce. The progress in robotics
and demand for cyber security could
revolutionise employment – all of which means
that the job market could change beyond all
recognition in the space of a generation.
Despite this, digital advancement in Britain is
believed to lag behind many parts of the world,
notably the Far East. Countries which weren’t
able to put the infrastructure in place following the last industrial revolution have advanced at a
far greater rate, unencumbered by the past.
Instead they have embraced digital with all its
efficiencies and service benefits. Britain, it was
generally agreed, needs to be sure it doesn’t get
left behind.
As BHSF Employee Benefit’s Brian Hall put it,
“Technology is the game changer, not Brexit.”
For more on the IoD's view on future
employment trends, see our Lifelong Learning paper.
To find out more about the Chartered Director programme visit iod.com/chartered.