Brexit causes difficulty for businesses to make long-term plans
A high proportion of banking and finance firms say that making long-term plans in their business has been made more difficult as a result of Brexit, according to the Chartered Institute of Procurement & Supply (CIPS).
A survey of 2,111 supply chain managers across all sectors also found that 32 per cent of UK businesses who work with suppliers on the continent are actively looking for alternative suppliers based in the UK. The banking and finance sector posted a higher response at 36 per cent:
- 71 per cent said uncertainty making long-term plans difficult
- 58 per cent said supply chains becoming more expensive
- 36 per cent of procurement professionals in the banking and finance sector looking for UK suppliers as a result of Brexit
- 44 per cent mapping costs of potential tariffs
- 46 per cent said there was no immediate impact
The longer-term impact is bad news for suppliers to the sector as 36 per cent of respondents said that input costs for the sector would have to be negotiated lower. In addition, 29 per cent of respondents were concerned about free movement of people and 25 per cent felt UK negotiators lacked the necessary skills for Brexit discussions.