Business, Freight News, Logistics

European buyers ‘cutting back on UK orders’

[ November 6, 2017   //   ]

European businesses are planning back orders from UK suppliers because of the slow progress of Brexit talkssaid a survey by the Chartered Institute of Procurement and Supply (CIPS) published on 6 November.

It found that 63% of non-UK EU firms expect to move some of their supply chains out of Britain, compared with 44% in May, blaming the lack of progress in the Brexit negotiations which has raised fears of an abrupt departure in 17 months’ time with no transition.

CIPS’ group chief executive officer, Gerry Walsh, said: “British businesses simply cannot put their suppliers and customers on hold while the negotiators get their act together. The lack of clarity coming from both sides is already shaping the British economy of the future – and it does not fill businesses with confidence.”

CIPS said a fifth of British businesses were struggling to secure contracts beyond March 2019, when the UK is due to leave the EU.

Nearly two-thirds of firms said currency fluctuations following the Brexit vote had also increased supply chain costs.

The CIPS survey of 1,118 supply chain managers was conducted between 4 September to 5 October. A total of 106 EU-based businesses with British supply chains took part in the survey.