[ad_1]
Edel Group director Robbert Wapstra says his company has been doing business with Britain for forty years. The carpet division of the company Overijssel calls Edel Carpets B.V. and has its own sales office in England.
From there the Dutch serve their British customers. "The English love our carpet," says Wapstra. "It's a matter of good taste, but it may seem like a sales pitch."
The fact is that Genemuiden's rug producer earns 40% of his turnover in the UK. Wapstra follows news about Brexit very closely.
"Because we rely heavily on the UK, we take Brexit very seriously," he says. Lack of clarity
Modint branch organization writes that Dutch textile companies depend on an average of 15% of the turnover of exports to Britain. There is always a lack of clarity on what will happen after Brexit.
Last week, the British Prime Minister Theresa May made a proposal, but it has not been approved yet. The plan states that the UK rules on industrial and agricultural products remain the same as those of the EU. In other words, May wants the British to remain in an internal market for goods with the EU. This, moreover, does not apply to services.
That would be good news for Wapstra, but he still does not dare to encourage. "There is still a lot to change, you have to wait," he says
Five Scenarios
The director of the rug manufacturer is well prepared. He identified the top five risks for his business and developed a strategy for each risk. "With that we want to limit the damage as much as possible."
The biggest risks for the Edel group are a further decline in the pound sterling price, import duties and lost time at customs. He also investigated to what extent British competitors could become more attractive. And finally, he worries about the weakening of the British economy
Pounds and delivery
"You can sell books to the bank in advance," says the director. "So we have done that for almost all the expected receipt of the 2018 pound. We may also want to do this for some of the expected product from 2019. We are selling the books at the current rate, so if it falls further we will have less problems van. "
He also rents storage space in England so that he can always deliver on time. "We promise delivery within 48 hours, so it's important to make sure our English warehouse is filled on time." With our own warehouse, we can absorb the waste of time at the borders.
British Economy
The biggest threat to the Dutch carpet supplier the weakening of the British economy. If things are not as good, the carpet orders could be postponed. He is not afraid that customers then order from his British competitors.
"The analysis of our British competitors shows that they must also import the raw materials, which represents about 70% of the cost price of carpets, so it remains limited to the levy at the end of the year. import on the remaining 30 percent, but that does not make a difference. "
There is still a risk of fewer or deferred orders. This is why the company is currently investing less in the UK market and more in other countries. Which countries, it does not mean. "Then my competitors will do the same."
More entrepreneurs on the Brexit:
Source link
