One of the biggest issues that surrounds the success of the Leave campaign in the EU referendum, at least when it comes to Construction, is the effect that the decision may have on domestic companies and their relationships with those in Europe. Some believe that Britain’s exit from the EU could result in such partnerships crumbling or unfavourable terms being negotiated that could lead to faltering growth, however, there are those in the industry that believe that the result may not have as significant an impact on the industry as others claim.
French building supplies group Saint-Gobain is one such voice, as the company believes that the result will have little long-term impact and may even lead to a boost for the industry, even amidst all of the uncertainty that currently surrounds it and Britain’s role as a whole in Europe.
The company relies on British companies for approximately 11% of its revenue, so it is certainly within the company’s best interests to maintain its relationships in the UK, particularly those that have been formed as a result of its acquisition of British Plaster Board (BPB) in 2005.
Chief Executive Officer Pierre-Andre de Chalendar spoke to reporters and industry figures during a conference call, stating: “It’s possible we’ll see some contraction in the economy … but it’s also possible that the British government launches a stimulus project in the autumn and that there is no slowdown in activity.”
The talk of a stimulus project is not unfounded, as the UK government has already outlined its plans for growth in Construction and has already noted that that cutbacks in austerity policy may be required to help give the economy the boost that it needs.
Saint-Gobain also pointed out how a weaker British pound may actually help companies, particularly those that export goods. Pointing to their own work with BPB, they note that the company’s exports may mitigate any issues that are caused by downturns in the domestic market.
Of course, this does not account for Specialists who conduct their work solely on the domestic level, plus there are issues with supply from European countries and rising costs related to the fall of the pound. However, it is a silver lining that may demonstrate that there is still strength in Construction, even amidst all of the uncertainty.
What is certain is that the team at C-Link aims to help both Specialists and Professionals streamline the tendering and procurement processes, facilitating the building of long-term relationships, both domestically and internationally, in the process.
To find out more, head to www.c-link.com and sign up today.
C-Link – Facilitating growth and relationships within Construction[CRF_Form id=’2′]