Have You Started Planning for Brexit? Half of Logistics Companies Haven’t!

Following Boris Johnson’s announcement as the UK’s prime minister, promising to take the UK out of the EU on October 31st, only half of the UK’s logistics sector have started to make their plans for Brexit scenarios according to a report published by the Chartered Institute of Logistics and Transport (CILT) in partnership with Statista has found.

With queues of lorries at Dover, and supply chain chaos, often being cited as the biggest threats of Brexit to logistics – especially in a no deal scenario – only one in three logistics firms have established a team to work out a Brexit strategy with only one in give making use of external help available. This indecision may be in part, down to Government not being clear on what Brexit will mean for the UK or the logistics industry.

Only a few are taking proactive measures with 18% holding back from making investment decisions and up to 15% planning to move part of their company abroad with as much as 13% admitting they haven’t taken any steps for Brexit at all.

These findings from the CILT and Statista’s new study, entitled the UK Logistics Monitor 2019 report, which identifies currentl developments and trends within logistics whilst offering insights into topics of HPL recruitment, technology and Brexit.

When it comes to how Brexit will affect business, 39% of logistics companies believe that there will be a negative impact on day-to-day operations, with another 32% believing that Brexit will negatively affect their economic situation. As much as 40% depict a high uncertainty regarding economic effects on their company.

Kevin Richardson, chieve executive of the CILT said “With so much uncertainty around what Brexit may mean for the supply chain sector, firms are understandably struggling to plan. The profession urgently needs clarity on how Brexit will affect operations. With the supply chain being such an important part of the UK economy, underpinning almost every other sector, the UK government needs to act quickly so that we can prepare accordingly. Whether a deal is agreed or not, there is a strong possibility that Brexit will cause months of severe disruption and CILT encourages all of its members to stay agile, hope for the best but prepare for the worst.”