Freight News, IT, Logistics, Business

Brexit hits business – but some firms benefit

[ April 13, 2021   //   ]

Some 43% of businesses said they have been impacted negatively by Brexit in 2021 – but 19% of businesses are thriving in a post-Brexit world, particularly electronics and computer firms, according to a report by logistics software group Descartes. The report adds that 90% of businesses have faced disruption since the end of the Brexit transition period, while 53% expect their 2021 turnover to be lower than if the UK had remained in the EU with an average reduction is 29%.

Over three quarters of firms said that their Brexit response had been disrupted by Covid-19. However, those businesses that started their customs filing preparations in 2019 (24%) and early 2020 (33%) were doing best, the report added.

Descartes added that • 80% of businesses reported disruption to their cross-border trade with the EU or Northern Ireland, rising to 93% for medium and large enterprises.

The research findings underline that with the next phase of Brexit changes – an end to deferred import declarations from July 2021, and safety and security filings required from 1 January 2022 — there are lessons to learn about the value of preparation and acting ahead of deadlines.

Descartes’ vice president of sales and business manager UK, Pol Sweeney  said: “Brexit has thrown many businesses into a spin, but the companies that prioritised Brexit preparation are thriving and provide a best practice blueprint that the rest of the market can now follow. Our research highlights that with the changes due from July through to January 2022, early preparation is, once again, crucial to avoiding expensive disruption.”