Half of European businesses to reduce their use of UK suppliers

UK/Europe: how to avoid Brexit tariffs

 

  • 32% of UK businesses who use EU suppliers are looking for British replacements
  • Nearly half (46%) of European businesses expect to reduce their use of UK suppliers
  • 36% of UK businesses plan to respond to Brexit by beating down supplier prices
  • The UK’s “weak negotiating position” is seen as the biggest hurdle in trade talks

Businesses either side of the English Channel are preparing contingency plans which could sever supply chains between the UK and EU, according to the Chartered Institute of Procurement & Supply (CIPS).
A survey of 2,111 supply chain managers found that 32% of UK businesses who work with suppliers on the continent are actively looking for alternative suppliers based in the UK as a response to the referendum.
Businesses within the EU are even more advanced in their preparations. Almost half (45%) of EU businesses who work with UK suppliers are in the process of finding local replacements.

http://www.cips.org …  Tue.,  16  May 2017