With looming Brexit negotiations, companies in both the United Kingdom and the European Union are planning for worst-case scenarios.
45% of European companies are looking to replace UK supplier with local businesses, and a third of UK business are seeking out replacements for European suppliers, according to a survey by the Charter Institute of Procurement and Supply.
This is a response to uncertainty as both UK and EU diplomats begin Brexit negotiations. With neither party decided on their negotiating principles, supply chain managers are preparing for the possibility of high trade tariffs and customs barriers come 2019, and are looking for ways to ease the burden.
The study also found that 655 of UK companies have seen their supply chain increase due to a weaker pound, resulting in 29% renegotiating contracts.
Brexit consequences were among the top issues featured in the DRI Future Vision Committee’s 2017 Trends Report. Click here to download a copy from the MyDRI Resource Library.