Nearly one in seven EU companies with UK suppliers have moved some of their business out of Britain, according to the Chartered Institute of Procurement & Supply.
Almost a third of U.K. businesses with suppliers from the bloc have increased prices as a result of Britain’s 2016 vote to leave, the group said in a report published Tuesday.
While businesses welcomed the news Monday of a preliminary deal on a transitional agreement, some have been activating contingency plans to make sure they’re not caught out by Brexit. The transition will keep the country operating under current EU rules until the end of 2020 to give companies and the government time to prepare for Britain’s departure.
Nearly a quarter of U.K. businesses are planning to reduce their workforce to offset Brexit-related costs, according to the report, based on a survey of more than 2,000 supply-chain managers globally.
“Businesses have little choice but to pass on some of their rising costs to consumers in order to protect their profit margins and stay in business, as a result of the crippling cost of Brexit,” institute economist John Glen said in a statement. “Businesses that fail to plan ahead and use this opportunity to reduce costs in their supply chain may not survive.”
Moving Out
More than 1 in 10 EU companies have moved some of their employees out of the U.K. since the referendum and 22 percent of British businesses are having problems securing contracts with EU suppliers after the March 2019 leaving date, the report said. [...]
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Fulls results of CIPS survey
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