Brexit pain for UK businesses, as supply chain costs rise

Nearly a third of UK businesses with EU suppliers have already increased their prices in order to offset the potential costs of Brexit.

Brexit uncertainty is causing businesses to pass the increase in costs incurred as a result of supply chain challenges on to consumers, according to new research from Chartered Institute of Procurement & Supply.

Published on Supply Chain Digital | By James Henderson

Nearly a third (32%) of UK businesses with EU suppliers have already increased their prices as a result of the vote to leave the EU, while two-fifths (41%) plan to increase their prices in the future in order to offset the potential costs of Brexit.

Just under a quarter (23%) of UK businesses said they plan to reduce the size of their workforce to offset Brexit-related costs, potentially leading to an increase in UK unemployment, which rose for the first time since Brexit in February 2018 to 4.4%.

Additionally, more than one in 10 (11%) EU companies have moved some of their workforce out of the UK since the Brexit vote.

With 60% UK businesses saying that currency fluctuations after the vote have made their supply chains more expensive to manage, consumers are already paying the price of EU withdrawal some twelve months ahead of official departure from the Union.

Read entire article Brexit pain for UK businesses, as supply chain costs rise | Supply Chain Digital

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