It's been three years since the UK voted to leave the European Union, and there are still no clear answers on what Brexit will mean for businesses. Costs and delays associated with Brexit continue to weigh on UK companies trying to trade with EU countries.
Since the UK's split from the EU, British manufacturers and retailers have been struggling to trade with suppliers in other parts of Europe and beyond. The supply-chain pain caused by Brexit is still being felt by many companies, as they attempt to navigate the complexities of trade agreements and customs regulations. While some companies have been able to adapt, others are struggling to cope with the new reality.
Since Brexit came into force, UK companies have been facing an umpire of difficulties in managing their trading activities. Many UK businesses are having difficulty keeping up with trading. Their options are now limited due to tariff barriers, making it much more difficult to manage global supply chains, purchase goods, and services at competitive rates, and make profits as freely as before. This is creating complex custom paperwork and costly delays, both of which can severely affect a company's ability to complete its trade. As Brexit continues to disrupt the supply chain, particularly amongst UK manufacturers and retailers, companies must remain aware of their current trading environment and take steps to ensure successful operations within this quickly changing setting.
There were also many other challenges that the UK faced and compounded the effects felt following Brexit. The pandemic and its ongoing impact on countries, in combination with escalating tensions in Ukraine, all continue to affect and disrupt supply chains around the world. Especially British businesses that were hoping to trade outside their borders have now been dealt an unforeseen blow. With unforeseen delays, skyrocketing export costs, and labor upheavals on the home front, it's becoming increasingly evident that Brexit remains a heavy burden for British businesses.
While the immediate aftermath of Brexit highlighted the need for UK supply chains to become stronger and more resilient, it has been proven difficult to combat the increasing costs associated with such adaptations. Companies in many industries are having to re-adjust their strategies for trading both within Europe and internationally. The necessary steps towards improved resilience and agility have caused an unfortunate surge in costs for manufacturers and retailers, alike; however, these cost increases are necessary. Onshoring supplies is also a priority, but this entails an additional financial burden which puts further strain on businesses already faced with heavier production expenses. Although the implementation of these measures may be costly, there is an expectation that over time, efficiency will increase significantly to help offset some of the expenses.
Supply chain finance (SCF) can be a powerful tool for UK businesses to mitigate the impact of Brexit on their supply chains and offset supply chain bottlenecks. By providing access to working capital and liquidity, SCF can help British firms better manage their cash flow and reduce their exposure to the cost of Brexit-related delays or disruptions. SCF can also help businesses manage their long-term needs and take advantage of potential Brexit-related opportunities as well. For more information, please contact email@example.com to get in touch and discover how we can help your business today!