Mel said:
ProfJohnL said:
Can I remind posters that my question was not a political one, but was about how the UK caravan industry may fair. At least a few of you have at least adhered to the theme of the topic.
Thing is Prof, as your question is an economic one; I am not sure how you can fully separate it from the current political one. If one tries to answer the question by using all the information we have been given by the Remain and Leave camps, which of course was contradictory and in some cases downright untrue or hysterical, then the answer to your question has to be Nobody Knows. At this stage when markets are in turmoil, article 50 has yet to be signed, no trade agreements are in place, and Scotland about to launch a referendum that will undoubtedly mean the breakup of the Union; the only way to answer is to view the evidence of Remain or Brexitor and pick one as being more salient. This then puts the question back into the political.
In the fullness of time when it will be much clearer whether we have voted ourselves out of the frying pan,into the fire, or freed ourselves in a single bound, will it be possible to have a view which transcends the current political divide. ( Of course there is a philosophical view that all questions and all answers are "political", but that debate may be a little abstruse for this thread).
Mel
Thank you Mel for a well argued response.
Whilst I agree that our fortunes will ultimately rely on political decisions, I think we can transcend the political arguments when looking at the future of our caravan industry.
It seems that if you look around most of the world at the moment most caravan industries are largely indigenous. with only small proportions of export/import. There are several reasons for this, but mainly there are local requirements which don't always translate well into other counties markets. So producing export models is usually involves quite a lot of additional cost, making export models less attractive to the bulk markets in other countries. Exports therefore tend to be niche market product with a premium price.
Even with the EU in place if you look at the UK market the percentage of imported models sold is very low, and most are niche products such as the big luxury vans or the super small lightweight - Yes I do acknowledge the like a Adria who compete in the mass market, but such examples are few.
So as it adds up at the moment, I don't see big changes for the UK manufacturers. Even if article 50 is enacted ( and there is no certainty that it will be as the referendum does not carry legal force to exit the EU) UK manufactures will still be able to buy all the bits they currently do from the EU, but they may cost more.
And the same conditions will apply to UK exporting to other trade areas like the EU we will still have to produce products that comply with local standards, But the big thing may be that EU import duties will be applied to the products will push up customer prices further are our products good enough to justify this hike?
So my current crystal ball reading of the future (if we actually leave the EU) ignoring any other financial effects of leaving the EU.is uk caravan manufactures will find manufacturing costs will rise due to duty on imported products, exports will reduce, but the loss of those sales may well be offset by the fact importing caravans will be more expensive shifting customers back to UK built products.
The danger of this situation is that without the benchmark of alternative usually better specified product from abroad, UK manufactures will not be as diligent (Cough Cough) with product quality as the are now and we may well see a decline in customer satisfaction. - Can it get any lower? :blink: