Contrary to recent reports that manufacturers are for ‘Bremain’ in the upcoming referendum, Caxton’s most recent poll of its corporate clients show that manufacturing as a sector is in favour of a ‘Brexit’. 42% of manufacturers thought that Britain exiting the EU would benefit their business, with nearly all citing greater fiscal independence for tax and public spending as the main reason. Only 39% of manufacturers were in favour of ‘Bremain’ whilst a hefty 19% were still unsure of how they would vote.
The foreign exchange specialists surveyed a range of their corporate clients, from a cross section of industries, to gain their perspective on how Britain leaving the EU would affect their business. Out of all sectors surveyed, manufacturing had the highest number of yes votes, followed by the arts, entertainment and recreation, and wholesale retail and trade sectors.
The results of the survey found that 60% of all SME’s believed that a Brexit would have a negative impact on their business. 25% were in favour of a Brexit for business, while 14% were unsure.
81% of the information and communication industry supported Britain staying in Europe, with most citing access to the EU market as a key reason for retaining EU membership. 75% of the education sector was also in favour of remaining in the EU, with almost all championing the greater supply to workforce as the main driver.
“Responses indicated that modern tech-based industries tended to be pro-Europe, valuing access to talented staff and wider markets. Alternatively, established and more traditional sectors prized the freedom in spending and foreign policy achieved by economic autonomy,” CEO, Rupert Lee-Browne said.
The manufacturing sector index published by Markit and the Chartered Institute of Procurement and Supply showed a reading of 49.2 in April. This is lowest the index has been since March 2013. Furthermore, the European commission has downgraded the UK’s growth forecast for 2016. Reasons for the survey’s findings could be in the fact that the manufacturing sector is desperate for an industry shake-up to initiate growth.
Alternatively, these numbers could illustrate that manufacturing companies are not fully aware of the ramifications that Brexit could have on their activities and that the government needs to do more to educate the public so that business owners can make an informed decision when the time comes to vote.
Clare Staffell, Managing Director at Schmolz+Bickenbach, steel suppliers to the manufacturing industry, explained why she is pro-Brexit, “Business owners are forgetting that the UK buys more from the EU than it sells. As a nation we have enough buying power to forge new international trade relationships and the referendum is our chance to make this happen.”
“These results are important as they lend a voice to SME’s, who are often underrepresented when it comes to political issues. Whether the UK does or does not end up leaving the EU, Caxton FX will endeavour to support our clients through a potentially tumultuous period.” Mr Lee-Browne said.
A full breakdown of the results from the Caxton FX Brexit survey can be seen here.
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About Caxton FX
Caxton FX is a FinTech FX company that has become an entrepreneurial success story. Since launch in 2002, Caxton FX has helped people and businesses manage their currency through a single pre-paid currency card and through personal and business foreign exchange services. We believe in giving unbiased guidance to every Caxton FX client; ensuring they get the best value from their foreign currency exchange.
In 2015 we successfully processed 7.3 million transactions, and have transferred more than €1 for every man, woman and child on this planet. We currently have over 400,000 customers with an annual turnover of over €1 billion.