Like all UK businesses, we face a period of uncertainty on the implications of the UK leaving the EU, looking ahead to March 2019 and beyond.
Despite this uncertainty, we are fully committed to our business and customers in the UK. We are well prepared for all possible Brexit scenarios and have been putting in place practical measures to pro-actively mitigate any disruption to the supply to our customers in the UK and Ireland, and to protect our workforce, whatever the outcome.
Further to this, the Hilti Group is global and already manages the supply of goods to many other Hilti operations based in countries outside of the EU. The Group operates through 28,000 employees in over 120 countries and we are assured that our production lines will not be affected by Britain’s exit from the EU.
We are already holding safety stock in the UK to ensure a sustainable supply of goods to our customers, and have been working in close collaboration with our transport carriers to ensure a smooth transition. In case there are any unacceptable delays or other issue with future supply to the Republic of Ireland, we have put in place contingency plans for local warehousing and after-market services for our customers, to address the potential challenges ahead.
Since the majority of our products are manufactured outside of the UK, we are expecting some tariffs to be introduced on the products we import from the EU if the UK leaves the EU without agreeing a trade deal. We also anticipate the cost of doing business in the UK may increase and we will review our pricing and will communicate any changes to you separately.
We will continue to be a business which puts our people at the heart of our organisation and firmly believe in the benefits of working with diverse and integrated teams. We are supporting and offering guidance to our team members who are EU citizens wishing to continue to work and live in the UK.
At this point, no one really knows what Brexit will bring. I would encourage you to take heart from the fact that Hilti is committed to delivering for our customers in the UK, as we have been since 1958, and have the backing of a solid Global organisation.
Matias Jarnefelt, General Manager, GB and Northern Europe