Many businesses are still unsure about how Brexit will affect their supply chain operations. As a result, an increasing number of businesses based in the UK are choosing to partner with Irish distributors to sidestep the issues caused by Brexit.
What Will Be the Impact of Brexit on Supply Chains?
Industry experts anticipate that Britain’s withdrawal from the European Union will have a major effect on the supply chains of most businesses across all industries. European distribution is one sector that is expected to experience huge disruption as half of the UK’s trade is with the EU. Another cause for concern is that businesses in European nations may reassess their UK sourcing post-Brexit. A CIPS report has shown that 63% of EU businesses that work with UK-based suppliers plan to relocate at least part of their supply chains out of Britain.
Following Britain’s withdrawal, it is highly likely that the customs process will take much longer. As a result, there could be significant delays in regions which process a high volume of imports and exports. This, in turn, could cause very heavy road congestion which will further worsen delays. CIPS predicts that customs delays of merely 30 minutes could bankrupt one in ten businesses.
The reintroduction of tariffs will prompt an increase in the cost of customs declarations and rules-of-origin checks for UK imports and exports. What’s more, companies may be affected by currency rate fluctuations which would raise the costs of raw materials. As such, businesses of all sizes will face significant supply chain cost hikes.
Why Work with an Irish Distribution Partner?
Partnering with an Irish distributor could provide one way to avoid some of the obstacles caused by Brexit. As Ireland is committed to remaining in EU, its businesses will still retain access to free trade with the 27 other EU states. Another big benefit is that Ireland speaks English and post-Brexit, it will be the largest English-speaking state in the EU. Other than that, Ireland has many cultural, economic and legal similarities with the UK, and these will go a long way to ensure a smooth transition.
Keen to Find Out More?
If you would like more information on how to find the right European distribution partner in Ireland post-Brexit, then we advise reading the below infographic below from 2Flow. This useful guide features some key facts and figures which illustrate how Brexit will affect supply chains. It also goes through the reasons why your business should think about relocating your distribution to Ireland and offers several tips on how to pick an Irish distribution partner.