Comprehensive report lays bare facts, fears and hopes
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. As this is a one-off survey, IABM has decided that non-members as well as members may have free access to the full report. The report can be downloaded here.
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. Finally, the report includes some anecdotal feedback that shows the range of opinion on Brexit is significantly less in favor within the industry than was reflected in the close referendum result.
As with all such reports, every reader will take away their own interpretation depending on where their individual priorities lie. Headlines are:
- A hybrid trade deal is seen as the most likely outcome when the negotiations are completed in 2019.
- 46% of respondents felt their businesses would be slightly affected as a result of trade restrictions, with a further 30% expecting to be highly affected.
- Most companies (between 66% and 88%) do not foresee reducing investment on four key areas – R&D, Recruitment, Training and Sales & Marketing – with recruitment being the most vulnerable at 66%, and R&D least so at 88%.
- 80% of end-users do not plan to reduce their investment in the UK – with 10% planning to do so and 10% uncertain.
- For 70% of research participants, exchange rate volatility is reducing investment incentives.
- 57% of respondents said that their organizations had not experienced any decrease in orders as a result of the Brexit vote – with 17% reporting negative effects.
- Most participants have not experienced any revenue (49%) or cost (47%) change. However, more companies have experienced revenue decreases than revenue increases and more companies have experienced cost increases than cost decreases.
- 57% 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.”