Sterling has depreciated against the US dollar and the Euro since the referendum in June, hitting a 31 year low against the dollar in October. At time of writing, the exchange rate had climbed following hints from Theresa May that she will be looking for a transitional Brexit deal that will favour British businesses. However sterling is still comparatively weak, which presents some challenges for merchants and distributors. For example, the price of imported construction materials is predicted to increase by 3%. It also means that inflation may increase, which adds to the uncertainty we are facing.
But challenging times also present opportunities. Here are five things that merchants and distributors can do to mitigate against, and even benefit from, the economic situation: