“Brexit threatens residential and commercial construction sectors’ continued growth” - Kim Vernau
- Date: 29/06/2016
Kim Vernau, CEO, BLP Insurance: “Whilst the industry should not overreact, there is no doubt it will be a tougher market in which to do business until some certainty is attained in terms of any negotiation access to the EU Single market, which remains key, as does flexibility in the labour market.
“The drop in the exchange rate between sterling and the euro will adversely impact the costs of materials from Europe for the construction industry. Coupled with the uncertainties of access to free movement of labour and the fact that London may not prove as attractive a location to financial services businesses should we lose our passporting rights, there is a considerable challenge to the continued growth of residential and commercial construction sectors in the UK. Some could argue that Brexit may, in part, be masking a re-alignment of the sector that would have taken place in any event; however this referendum result will exacerbate the negative effect of that re-alignment process.
“The industry now needs to focus on moving forward, united in ensuring both residential and commercial sectors remain attractive as an investment both domestically and internationally.”
For further information, please contact:
Alba Redondo or Roya Abbasi
T: 020 3697 4200