in Features

Brexit impacts on global trade strategies

Posted 16 December 2016 · Add Comment

Hannah Beckett, Sales Manager, AEB (International) Ltd analyses the findings of a recent industry survey regarding Brexit impacts on global trade strategies.

The results of the EU Referendum in June caused uncertainty and hesitation in the business community. However, moving from reactive paralysis to proactive preparation, the initial shock has passed and companies across industry sectors have started to come together to address their needs, discuss options, and prepare staff and operations for possible scenarios.

Industry events centring on Brexit impacts are currently in high demand, which not only indicates that uncertainty still prevails but also that awareness for the need to act has finally increased. It’s crucial for the business community to get involved and engage now in order to address concerns and prepare for possible impacts in all areas of daily business – now and in the long run.

On 11th October, AEB and the Chartered Institute of Logistics and Transport, CILT(UK), jointly hosted the conference 'Brexit – global trade compliance and export controls in dynamic markets'. Supply chain professionals from various industries took part, including automotive, aerospace and defence, pharmaceutical and medical, high-tech and electronics, machinery and engineering, and logistics. At the event, over 60 delegates discussed possible impacts of Brexit on export control obligations and compliance programmes.

60 UK businesses share concerns
As part of an anonymous survey during the workshop sequence, the conference participants also shared feedback on current risks, challenges, and opportunities for their business in light of Brexit. Interestingly, while Brexit appears to be on the forefront of UK businesses’ minds when it comes to current risk assessment, the challenges participants reported seem independent from it. Challenges cited are those that affect all businesses across the globe equally – regardless of latest local or regional global trade changes.

The greatest risks

As it turns out, delegates are quite concerned about the impacts of leaving the EU. 74% consider possible duties and taxes for goods and services imported from or exported to the EU as the greatest risk to their business at the moment. They are much less concerned about TTIP, for example, with only 7% considering it a high risk to not be part of this agreement following Brexit. Not having access to the EU Single Market ranks second in the list of highest risks, followed by “changes to UK export regulations” in third place at 49%.

The main challenges
When asked what they considered the greatest challenges for their company, half of all delegates responded that it was “Managing increasing complexity under cost and time-to-market pressures”. Evidently, this challenge applies on a global level and is relevant to all businesses struggling to digitise their business while keeping up with customer demands, competition, and innovations. The second greatest challenge was 'Gathering information from government agencies' - 43% of respondents highlighted the ongoing challenges in the constantly changing regulatory environment of global trade and export controls.

Areas of opportunity and investment
Last but not least, delegates were asked what they considered the main areas of opportunity and investment for their company. Changes to UK export regulations ranked highest (43%), while only 23% considered changing sourcing strategies and working with new suppliers. Also, 29% said that implementing appropriate tools that can adapt to global trade changes was an area of investment.

330 international businesses provide insights
AEB also carried out more extensive research as part of the annual research study 'Global Trade Management Agenda' in collaboration with the University DHBW in Stuttgart, Germany. This year, over 330 experts working in the areas of supply chain management, global trade, and logistics across various industry sectors provided feedback on trends and priorities in the upcoming year. And as part of this year’s results, 'Implementing changes to customs laws' was cited as an important or very important challenge for 2017 by 61.6% of respondents.

What’s most interesting here is that the Brexit vote did not produce any change regarding the assessment, nor did it heighten the perceived importance of this issue compared with the previous year’s results. It confirms again, however, that global trade is a highly dynamic area that is subject to constant change and new regulatory frameworks, which never ceases to present businesses with great challenges.

Perhaps one of the main lessons to take away is this: whatever happens, companies that are prepared and have the right tools in place to adapt to changes and to achieve agility in their supply chains will be better able to weather any storm – be it caused by Brexit or any other change in today’s dynamic markets and ever-changing global trade environments – and to keep a competitive edge. Also now is the right time to scrutinise processes, systems, partners and skill-sets to ensure the business can master upcoming changes – and to 'stock up' as needed while there is time to get ready.

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Vistara receives its first A320neo

Airbus has delivered the first A320neo to Vistara, a Delhi based full service airline and joint venture between Tata Sons Ltd. and Singapore Airlines (SIA).

QinetiQ and Rockwell Collins partner on MCOS and GNSS receivers

QinetiQ and Rockwell Collins have signed a global Alliance Agreement to collaborate on the development of next generation high assurance, Multi Constellation Open Service (MCOS) and secured Global Navigation Satellite System

BMT signs submarine framework agreement with NDMA

BMT Defence Services (BMT) has won a contract with the Norwegian Defence Materiel Agency (NDMA) to provide consultancy support for the New Norwegian Submarine Acquisition programme.

QinetiQ to enable virtual training links across RAF bases

A QinetiQ project is to allow Royal Air Force (RAF) Typhoon pilots to train together in virtual environments from different locations by linking simulators at the squadrons' Main Operating Bases (MOBs).

Rolls-Royce tests world's most powerful aerospace gearbox

Rolls-Royce has started power runs of the world's most powerful aerospace gearbox for the first time, marking another significant step in the development of its new UltraFan engine design.

Gatwick establishes first airport indoor navigation system

Around 2000 beacons have been installed across Gatwick Airport's two terminals providing an indoor navigation system that is much more reliable than GPS and that enables augmented reality wayfinding for passengers a world first for

Getac SK2703270617
See us at
SMIUAV BT1005280917DSEI LB0911150917SMI FAVWS BT0504290617SMI AirMissBT0305251017SMI12DE BT203280917