By: Colleen Kardasz, Director, [email protected]Ohio SBDC Export Assistance Network
Whether you’ve only heard the term Brexit from Twitter, or late-night comedy shows, or if your company trades heavily across Europe, it has been difficult to avoid the Brexit debate and analysis as the world tries to understand the long-standing consequences to the United Kingdom voting to leave the European Union. Whether this decision is a long-anticipated response to changing world politics or a foreshadowing of future changes, the market fluctuations alone make Brexit an important issue for companies around the world who do or will export to Europe. With the announcement that a new Prime Minister, Theresa May, will be in place this week[1], the world is wondering how quickly other changes could occur. The number of issues that must be resolved if and when the UK actually exits the European Union is staggering, and the list will surely grow as time goes on.[2] Given that it’s been only a few weeks since the historic vote happened, the answer to most questions surrounding Brexit is, we don’t know.
For companies in Ohio, Europe is a substantial trading partner. The 2015 Ohio Export Report shows that over 17% of the State’s exports, or over $8.9 billion, goes to Europe. Of the top ten export destinations France, the United Kingdom and Germany each receive over $1 billion in exports from Ohio companies.[3] According to an International Trade Administration report for 2014 the Toledo MSA alone exported over $830 million dollars to the European Union.[4] The ramifications of Brexit are important to trade across Europe not just because of the central role the UK plays, but if there are ripple effects across Europe, and if this speaks to long term issues with the structure of the European Union.[5] Speaking to Dave Vrooman, International Accounts Manager for The Andersons’ Plant Nutrient Group, right now it’s all about reaching out to partners and customers and keeping the conversation going to prepare for changes if and when they occur. With sales across Europe and about 10% of those sales coming from the UK, The Andersons certainly has an interest in the outcome of Brexit. However, any major changes will take a considerable amount of time to implement leaving companies here and abroad to continue doing business as usual, albeit with perhaps a bit more caution and uncertainty than before.
 | Colleen Marie Kardasz is the Ohio SBDC Export Assistance Network Director at the Toledo Regional Chamber of Commerce. Colleen is a licensed attorney with a background in marketing and PR who works with SMEs to start or expand their international business. |
[1] http://www.reuters.com/article/us-britain-eu-wrapup-idUSKCN0ZR19P
[2] http://www.bbc.com/news/uk-politics-32810887
[3] https://development.ohio.gov/files/research/B2004.pdf
[4] http://tse.export.gov/metro/MetroChartDisplay.aspx?ReportID=10&Referrer=SelectReports.aspx&DataSource=Metro&ReportOption=Chart
[5] http://www.politico.com/magazine/story/2016/06/brexit-change-europe-britain-us-politics-213990
[2] http://www.bbc.com/news/uk-politics-32810887
[3] https://development.ohio.gov/files/research/B2004.pdf
[4] http://tse.export.gov/metro/MetroChartDisplay.aspx?ReportID=10&Referrer=SelectReports.aspx&DataSource=Metro&ReportOption=Chart
[5] http://www.politico.com/magazine/story/2016/06/brexit-change-europe-britain-us-politics-213990
The Small Business Development Center (SBDC) program of Ohio is funded in part through a Cooperative Agreement with the U.S. Small Business Administration. The SBDC is also funded in part by the Ohio Development Services Agency. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
Please contact Emily Dammeyer, Communications Manager, Toledo Regional Chamber of Commerce to submit a story for our blog.
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