IABM assesses Brexit impact on broadcast tech suppliers
October 27, 2016
IABM has unveiled the results of a detailed survey on the potential effects of Brexit on broadcast and media technology suppliers and end-users. Conducted during September 2016, the survey was carried out among UK and European broadcast and media companies.
The survey provides illuminating reading across the full range of potential issues for businesses, from what kind of post-Brexit trading and political relationship the UK will be most likely to have with Europe, how this might affect companies’ investment plans and their ability to recruit skilled staff, and how the fall in the value of the British pound may impact balance sheets.
Key headlines include:
- A hybrid trade deal is seen as the most likely outcome when the negotiations are completed in 2019.
- 46 per cent of respondents felt their businesses would be slightly affected as a result of trade restrictions, with a further 30 per cent expecting to be highly affected.
- Most companies (between 66 per cent and 88 per cent) do not foresee reducing investment on four key areas – R&D, Recruitment, Training and Sales & Marketing – with recruitment being the most vulnerable at 66 per cent, and R&D least so at 88 per cent.
- 80 per cent of end-users do not plan to reduce their investment in the UK – with 10 per cent planning to do so and 10 per cent uncertain.
- For 70 per cent of research participants, exchange rate volatility is reducing investment incentives.
- 57 per cent of respondents said that their organisations had not experienced any decrease in orders as a result of the Brexit vote – with 17 per cent reporting negative effects.
- Most participants have not experienced any revenue (49 per cent) or cost (47 per cent) change. However, more companies have experienced revenue decreases than revenue increases and more companies have experienced cost increases than cost decreases.
- 57 per cent of respondents said that restrictions on EU immigration would exacerbate skills shortages and make talent hunting more difficult.
“This illuminating report is just an example of the many pieces of detailed, high quality research and analysis that IABM carries out throughout the year for our members,” said Peter White, IABM CEO. “Market knowledge is key to making good business decisions whatever industry a company operates within, and given the pace of change and disruption in broadcast and media technology market at present, good, timely information has never been more vital. From my own direct experience across a number of different business sectors, the knowledge that IABM shares with its members is truly second to none.”