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New research shows the reality of post-Brexit on transport and logistics companies
In the months leading up to Brexit, several commentators predicted there would be disruptions to trade between the UK and EU.
From large increases in paperwork, to changes to the value-added tax (VAT) system, and the burden of additional legal restrictions and requirements, it seemed inevitable that complications would arise based on the changing landscape of UK-EU trade relations.
HOW POST-BREXIT PERIOD IS SHAPING SUPPLY CHAINS
DDC FPO, a global business process outsourcing partner for transport and logistics companies, has recently undertaken market research to examine how the post-Brexit period has shaped – and will continue to shape – freight flows, customs processes, the greater transportation sector as a whole, and the global supply chain.
PREDICTIONS FOR DISRUPTION CONFIRMED
Disruption at the UK-EU border has not been as significant as predicted, with HGV flows across the short straits returning to normal levels quickly in January. While there were significant drops in exports to the EU in January, the Office for National Statistics (ONS) reported an encouraging uptick in exports in February as businesses adapted to the changes.
That said, DDC FPO's survey reveals that businesses have also faced difficulties. Almost all respondents, 99%, currently face Brexit-related business challenges. Worryingly, nearly 70% of respondents do not see a clear end in sight, citing that they believe that these challenges are likely to continue beyond the next 12 months. The findings also revealed details about the challenges that most companies are facing along with the predictions for how Brexit will continue to affect businesses and how employers are preparing for the future.
PREPPING FOR THE LONG HAUL
“Based on our research, it's clear that organisations will need to continue to adjust processes to adapt to post-Brexit challenges. For many companies, that means handling everything in-house — particularly customs paperwork — just won’t be sufficient anymore. We’re preparing for a significant number of organisations to increase dependency on business process outsourcing over the next year, particularly for things like staffing and customs processing,” said Art Zipkin, President of DDC FPO.
More information and details about the research can be found in DDC FPO’s new report Brand New Britain: What Post-Brexit Really Means for Businesses. To learn more, download the report for free on the link below.
Published On: 29/04/2021 17:00:49