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Brexit and what it means to Gearslutz Effects Pedals, Units & Accessories
Old 25th June 2016
  #1
Brexit and what it means to Gearslutz

Right, first things first, this is not a political thread. No political discussion will be tolerated.

So today was a maintenance day. And while my tech set about fettling various things that have gone awry in the last two manic months of non-stop operation I started pondering the affects of Brexit on the studio business.

The first thing that hit me (being a proper slut) was that it will no longer make any sense for me to buy gear in the states, as the pound is now so low against the dollar that prices suddenly seem painful (I'm bracing for rising cost of petrol/gas when that trickles through the system).

But then of course I realised that the other side of that particular coin is that gear being sold in the UK may suddenly look much cheaper to slutz in other countries. Hmmm...

That led me to thinking about studio business. Because if UK gear suddenly looks cheaper, then so does making records in UK studios. So are we about to see a resurgence in the UK recording industry? Are we about to become Cool Britannia again?
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Old 25th June 2016
  #2
Lives for gear
 

Good luck with keeping this one free from politics, Trev.

Yeah, I might make a trip to England and Wales this summer.
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Old 25th June 2016
  #3
Lives for gear
 

Well I am about to buy a very expensive piece of hardware from uk

I'm in the states so hopefully I can realize a nice discount
Old 25th June 2016
  #4
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Showcase's Avatar
 

From the Pound Sterling Forecast, it fell 11 cents against the euro and 16 cents against the dollar, i dont think it gonna help the record industry in GB
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Old 25th June 2016
  #5
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Joao B.'s Avatar
 

Recording in the UK might be less appealing to European bands because of VAT, and British manufacturers and sellers will lose a lot of EU buyers because of import taxes.
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Old 25th June 2016
  #6
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bgood's Avatar
I hope our British brothers and sisters don't get too screwed over during this transition... Good luck to y'all
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Old 26th June 2016
  #7
Gear Guru
 
Karloff70's Avatar
 

On topic, as someone looking to start selling a summing box out of Britain soon I hope they take their time finalising things, as to perhaps leave a gap where the pound is low like now but the tax situation hasn't been adjusted yet. ;-)

But in the end it will just be that people get robbed by different robbers. If it seems that british products are now cheaper from the outside they will be instead fleeced by their import tax. Cool Britannia? Not sure about that......

But in the end nothing is final yet, as the referendum was advisory only anyway. See what happens next.
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Old 26th June 2016
  #8
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Drumsound's Avatar
Anytime a nation makes a big change it can be stressful and cumbersome. I wish all the music and record making Brits good luck through the transition.
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Old 26th June 2016
  #9
Lives for gear
 

Speaking from a Television/Film music industry (and quite frankly, we keep a lot of the big studios and musicians in the UK in business more than bands) though it may be cheaper to fly, record, and hire there the tax incentives have dropped in worth and the tax incentives mean far more to the film/tv studios than the 1 million pounds we can spend on a single movie's music. Places like Abbey, AIR, and Angel could close without this (not to mention Pinewood Shepperton) -- they've all had financial strife in the recent past and have been near the selling block or just closing down. Soho could get wiped out too (with all the post and pre work done there based on the tax breaks.)

On the otherhand, angst in the younger generation has always been good for songwriting
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Old 26th June 2016
  #10
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Jeff Hayat's Avatar
 

This might be a bit of doom and gloom for the AFM here in the USA.

I am not 100% up on every detail, and there may be others here who know more than I do, but the thought I have is that there might now be more incentive for film scores to be recorded in GB. Hi prices, as well as the buyout scenario with the AFM, has sent a lot of films and producers packing; many remain, holding with the idea that the extra cost here is offset by not having to send an entire crew (dir, composer, music ed, assts., etc.) to GB for scoring sessions. But if the prices were to drop considerably, AND the GBP keeps dropping as well, that may change. Certainly will be interesting to see what happens.
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Old 26th June 2016
  #11
Gear Maniac
 

Quote:
Originally Posted by [email protected] View Post
Right, first things first, this is not a political thread. No political discussion will be tolerated.

So today was a maintenance day. And while my tech set about fettling various things that have gone awry in the last two manic months of non-stop operation I started pondering the affects of Brexit on the studio business.

Quote:
The first thing that hit me (being a proper slut) was that it will no longer make any sense for me to buy gear in the states, as the pound is now so low against the dollar that prices suddenly seem painful (I'm bracing for rising cost of petrol/gas when that trickles through the system).
But then of course I realised that the other side of that particular coin is that gear being sold in the UK may suddenly look much cheaper to slutz in other countries. Hmmm...

That led me to thinking about studio business. Because if UK gear suddenly looks cheaper, then so does making records in UK studios. So are we about to see a resurgence in the UK recording industry? Are we about to become Cool Britannia again?
Yeah Trev, funny thing out of this whole debacle is that I too, like a true slut, however saddened by your country's recent outcome, was thinking selfishly that if the pound drops, I might be able to afford buying more 1073 and 2254 kits (haha!). No, not to worry, our Aussie dollar sucks against most currencies these days anyway. So, anytime I have to buy anything (even Chinese mics are priced in USD, for God's sake!) in USD, Euro, or GBP, it's "Crying Time Again"!
So, chin up, you still have a strong currency...
Old 26th June 2016
  #12
Well Trev! If the current low value of sterling is inconvenient?, perhaps we could arrange upping it's value against the Euro.
For instance air dropping thousands of pairs of wire cutters into western Macedonia,
would be an idea.
After all as we Fairfax's say "if you can't join them, beat them".:-)X
Any other cunning ploys to destabilise the Euro Zone even more than it is at the moment?.:-)X
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Old 26th June 2016
  #13
Lives for gear
Buying used gear from UK won't be viable anymore (paying 22% VAT + customs is usually just too much). Even ordering electronic components from Farnell might become questionable for me, because customs make the procedure more complicated.
Although the drop in value of GBP might temporarily increase the export, the products that are based on imported components (most electronics) will have to adjust the price sooner or later. When you add customs, I highly doubt that the prices are going to be more competitive.

Touring is also going to get a bit more complicated.

I live in a town that was pretty much split with a border and probably appreciate the freedom of movement (besides the other things) that EU gave us more than many people, but I have to admit that things somehow worked even before the EU and people were happy, so things might somehow work out for UK, although German mics might become more expensve for you.
Old 26th June 2016
  #14
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Oldone's Avatar
The local news channel spelled several changes to we Americans as a result of BRexit. Rising housing values, lower interest rates were two of them. Thank you.
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Old 26th June 2016
  #15
Gear Maniac
 

Quote:
Quote:
Originally Posted by Jeff Hayat View Post
This might be a bit of doom and gloom for the AFM here in the USA.

I am not 100% up on every detail, and there may be others here who know more than I do, but the thought I have is that there might now be more incentive for film scores to be recorded in GB. Hi prices, as well as the buyout scenario with the AFM, has sent a lot of films and producers packing; many remain, holding with the idea that the extra cost here is offset by not having to send an entire crew (dir, composer, music ed, assts., etc.) to GB for scoring sessions. But if the prices were to drop considerably, AND the GBP keeps dropping as well, that may change. Certainly will be interesting to see what happens.
I am not up on this topic either, and not wanting to stray too far from this thread, but what's the deal with the AFM? Have things relaxed at all in terms of at least offering its members a choice, of say, session fees and residuals, vs straight buyouts? With world economies crumbling, scoring in the UK, Prague, Bratislava, Moscow, and now the new VSL Vienna Scoring Stage should represent a serious threat to AFM orchestral musicians in the US. Holding onto stoic unionist values, however admirable in guaranteeing some recompense to ageing and indigent musicians after a lifetime of hard slog, is also going to make it impossible to record orchestras in the US. Surely, AFM members should have an option to choose, if they want to hang on to a few more gigs.
As it is, recording with some of the principal players out of all the London metropolitan orchestras (pretty much unachievable anywhere else in the world!) is going to become even more affordable and realistic for a lot more people if the GBP keeps dropping.
Old 26th June 2016
  #16
Pre-EU British music part 2?

Music is art, Gearslutz.

May imaginations run wild.
Old 26th June 2016
  #17
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GeminIAm's Avatar
This means that I will never, ever be able to afford an OB6

You know all those poor Aussies complaining that the Minilogue costs 46 million over there? We'll be joining them :(

On the other hand, I've written my first ever protest song...

I wonder what Germany is like this time of year.


Edit: I forgot about my St George's cross avatar. I've removed it as I don't want people to think I support the leave camp, which unfortunately I fear they would. It's tainted. If this is too political I apologise, but I've tried to word it decently.

Last edited by GeminIAm; 26th June 2016 at 11:55 AM.. Reason: Added
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Old 26th June 2016
  #18
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jupiter8's Avatar
 

Quote:
Originally Posted by [email protected] View Post
But then of course I realised that the other side of that particular coin is that gear being sold in the UK may suddenly look much cheaper to slutz in other countries. Hmmm...

That led me to thinking about studio business. Because if UK gear suddenly looks cheaper, then so does making records in UK studios. So are we about to see a resurgence in the UK recording industry? Are we about to become Cool Britannia again?
In the short run, everything else being equal, it will have a positive effect. But most things you buy come from abroad and they will get more expensive so it will even out over time.

What you have effectively done is lower your prices by 20 % (or so). [deleted by mod]

Last edited by [email protected]; 27th June 2016 at 07:29 PM.. Reason: political content removed
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Old 26th June 2016
  #19
Gear Guru
 
John Willett's Avatar
 

Quote:
Originally Posted by [email protected] View Post
Right, first things first, this is not a political thread. No political discussion will be tolerated.

So today was a maintenance day. And while my tech set about fettling various things that have gone awry in the last two manic months of non-stop operation I started pondering the affects of Brexit on the studio business.

The first thing that hit me (being a proper slut) was that it will no longer make any sense for me to buy gear in the states, as the pound is now so low against the dollar that prices suddenly seem painful (I'm bracing for rising cost of petrol/gas when that trickles through the system).

But then of course I realised that the other side of that particular coin is that gear being sold in the UK may suddenly look much cheaper to slutz in other countries. Hmmm...

That led me to thinking about studio business. Because if UK gear suddenly looks cheaper, then so does making records in UK studios. So are we about to see a resurgence in the UK recording industry? Are we about to become Cool Britannia again?
The first thing that will happen is that gear prices will rise, and have already started to do so.

Distributors who import European and American gear will now have to pay more as the £ goes down in value.

So, for people resident in the UK, prices will rise.

Luckily, the £ did not drop anywhere near as far as I expected (so far) - but it did fall and prices will rise accordingly.

Fuel will rise as oil is purchased in US$, which will make travel more expensive.

If, in a couple of years, we are out of the single market, then prices are likely to rise further in the UK.

If Scotland leave the UK, as seems likely, then England will be weaker and the £ is likely to drop further, with further price rises.
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Old 26th June 2016
  #20
Lives for gear
 

well on a completely selfish tip. It means that we have an European plugin and soft synth sale for Americans!!! Also time book my uk vacation with the pound being down to a $1.35 i can buy a coke without it costing me $5
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Old 26th June 2016
  #21
Lives for gear
 

Most of the major gear manufacturers flying the "Union Jack" are multinational with parts supply, assembly and distribution taking place all over the world. The ability to financially navigate various national perilous currency manipulations is the hallmark of successful management in the boarderless world of multi-national companies.The Brexit will ultimately have little or no effect on major Brit manufactors. It is very important to realize transitions are loaded with unknown ramifications that can be a bit messy in their emplementation: however the driving reason for any change of this magnitude is exasperation with the status quo that has benafitted a few and disapointed many.
Hugh
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Old 26th June 2016
  #22
Quote:
Originally Posted by [email protected] View Post
Right, first things first, this is not a political thread. No political discussion will be tolerated.

So today was a maintenance day. And while my tech set about fettling various things that have gone awry in the last two manic months of non-stop operation I started pondering the affects of Brexit on the studio business.

The first thing that hit me (being a proper slut) was that it will no longer make any sense for me to buy gear in the states, as the pound is now so low against the dollar that prices suddenly seem painful (I'm bracing for rising cost of petrol/gas when that trickles through the system).

But then of course I realised that the other side of that particular coin is that gear being sold in the UK may suddenly look much cheaper to slutz in other countries. Hmmm...

That led me to thinking about studio business. Because if UK gear suddenly looks cheaper, then so does making records in UK studios. So are we about to see a resurgence in the UK recording industry? Are we about to become Cool Britannia again?
Interesting times. I think the 'EU culture' and Cool Britannia are part of the previous chapter; novelty in art and technology, catalysed by the economic outcome of Brexit, will be what attracts the readers interest in the next chapter.

Britannia should seize the initiative and be proactive in establishing technology deals/partnerships/incentives globally, and recognise the increasing role of the arts and culture in informing technological innovation.
Quote:
The United Kingdom has the fifth-largest national economy...The UK economy currently makes up 4% of world GDP. The UK has been the fastest growing economy in the G7 for four consecutive years with 2.1% year on year growth in Q1 2016. In 2014 the UK was the ninth-largest exporter in the world and the fifth-largest importer, and had the second largest stock of inward foreign direct investment and the second-largest stock of outward foreign direct investment. The UK is one of the world's most globalised economies...
Quote:
...The creative industries accounted for 7% GVA in 2005 and grew at an average of 6% per annum between 1997 and 2005.[109] Key areas include London and the North West of England which are the two largest creative industry clusters in Europe. https://en.wikipedia.org/wiki/Econom...ive_industries
From a home studio perspective an extra 10% US (if it stays at that - either way!) is absorbable given the Gearsluts passion for objects of desire and capability; but I guess that 10% would add up considerably in a commercial studio. I don't know the stats on audio hardware (e.g. pro vs home studio sales) but it seems likely some companies will need to adjust to Brexit and that need not be a bad thing.
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Old 26th June 2016
  #23
Gear Addict
 

Quote:
Originally Posted by John Willett View Post
The first thing that will happen is that gear prices will rise, and have already started to do so.

Distributors who import European and American gear will now have to pay more as the £ goes down in value.

So, for people resident in the UK, prices will rise.

Luckily, the £ did not drop anywhere near as far as I expected (so far) - but it did fall and prices will rise accordingly.

Fuel will rise as oil is purchased in US$, which will make travel more expensive.

If, in a couple of years, we are out of the single market, then prices are likely to rise further in the UK.

If Scotland leave the UK, as seems likely, then England will be weaker and the £ is likely to drop further, with further price rises.
The day after the vote, the pound lost about 8% against the dollar, which, I've read, is a titanic swing in the context of currency markets, where daily changes are more on the order of fractions of a percent.

The USD has not been unaffected either however. It has gained much less against the Euro thus far.

On the positive side for the UK economy, this strengthens exports for obvious reasons--it costs those of us elsewhere less to buy your goods.

DAV shopping spree Yanquis?
Old 26th June 2016
  #24
Gear Guru
 
John Willett's Avatar
 

Quote:
Originally Posted by pieter k View Post
The day after the vote, the pound lost about 8% against the dollar, which, I've read, is a titanic swing in the context of currency markets, where daily changes are more on the order of fractions of a percent.

The USD has not been unaffected either however. It has gained much less against the Euro thus far.

On the positive side for the UK economy, this strengthens exports for obvious reasons--it costs those of us elsewhere less to buy your goods.

DAV shopping spree Yanquis?
Good for people wanting to buy British goods, but bad for people in the UK wanting to but goods from abroad.
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Old 26th June 2016
  #25
[deleted by mod]

My favorite mastering engineer is in London. I will be sending him more work because of the trashed value of the pound.

Last edited by [email protected]; 27th June 2016 at 07:32 PM.. Reason: off topic/political/opinion removed
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Old 26th June 2016
  #26
I don't get the big deal about this "Brexit" thing. The UK is still united, and the UK is still in Europe, and the Pound is still the currency. Won't people just continue with life as usual? Won't people in the UK still make music? I like Adele, so as long as she can keep making music, everything else is all good.
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Old 26th June 2016
  #27
Lives for gear
 

I always wanted one of your (Brit's) On One carbon mountain bikes. That was like ten years ago. Guess I'd better get back to mixing and devouring entire pizzas.
Old 26th June 2016
  #28
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NoVi's Avatar
Now there is some shock going through the markets, but in a few weeks the dust will settle and things will be back to normal. The UK in the long run will become like how Switzerland or Norway manage their financial matters. Nothing wrong with businesses or musicians living in those countries.
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Old 26th June 2016
  #29
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Lumbergh's Avatar
 

The pound has been overvalued for ages, IMO this is a welcome adjustment to make the UK more competitve.

For the rest of the world your ATC, SSL, Focusrite etc ... gear just got cheaper so get your credit cards out! Or book that session at Lyndhurst, go on you know you want to
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Old 26th June 2016
  #30
Quote:
Originally Posted by the fxs View Post
c'mon...
let's either speak about seriously, or let's leave it alone.
it is a political topic,... so,... no double standards.
It needn't be a political topic. It is pretty easy to discuss how the economics of the situation can/will affect the music industry without straying into the policitcs of the situation.
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