Last week the BBC reported shocking accounts of UK firms being encouraged by the government to set up EU subsidiaries to avoid disruption.
While the Department for International Trade says it’s “not government policy” and they encourage businesses to follow this guidance, many of Britain’s businesses warn “profits are being wiped out and operations forced to move to Europe as they struggle to deal with the red tape and costs of trading”, reports the FT.
Companies face extra courier fees, health certificates and other Brexit costs, as well as duties on goods originating outside the UK, and administration of VAT. “For those which decide to continue, it is often at the cost of jobs in the UK as they move operations across the channel,” says the FT.
The Guardian also reports that “hundreds of UK companies could switch operations to countries inside the EU in what is threatening to become a dramatic exodus of investment and jobs caused by Brexit.” They quote Lyne Biewinga, of the Netherlands British Chamber of Commerce, who said she and her team had been working “night and day” on inquiries from UK companies in recent weeks.
A survey by Make UK, which represents manufacturers across the UK, shows that 60% of companies that said there were ready for Brexit“ now experience disruption” and are “also finding supply chains significantly impacted, reports The Guardian.
To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.
Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.
With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.
For more help with looking at supply chain options, contact Astute Electronics here
