With the historic vote of the UK to leave the European Union, you might wonder what it means for you and your business in the Big Sky.
MWTC Executive Director Miranda-Freer shares four insights:
First, Montana firms that may be warehousing in the UK for further distribution to the EU will rethink their location given that UK will need to renegotiate trade agreements with the EU. There are a couple Montana companies in this bucket.
Second, Brexit seems to have engendered an urgency on the part of some Montana firms to understand F/X risk and put into place appropriate measures to mitigate potential losses. We’re working with two Missoula-based firms right now to do so through a partnership with Bannockburn Global Forex.
Third, as this U.S. Census Bureau list of Montana exports to top partner countries shows, the UK isn’t a huge market for Montana goods. However, there is some history there. MWTC will continue to track what happens in 2016, but keep in mind this data always lags far behind actual events.
Finally, service exports from the U.S. are largely untracked (since bills of lading don’t accompany service exports as they do with traditional hard goods moving in and out of ports). Montana has a burgeoning cloud computing sector. Some of these firms export. It’s too soon to know if any of these firms doing business with the UK have seen a change in buyer behavior as a result of the shift in currency exchange between USD and GBP, but we’ll keep tracking feedback from Montana companies to gauge impact.
Stay tuned for more information as we learn more!
Published July 7, 2016