The COVID-19 pandemic has induced a devastating impression on the preparedness of UK producers for Brexit in accordance with new analysis from unbiased insurance coverage dealer Lockton.
In its survey of 500 UK producers, nearly half (46%) admitted their provide chain plans had been negatively affected by COVID-19, with 25% stating they haven’t made applicable preparations with simply six weeks left of the transition interval.
Simply 6% of all producers with worldwide provide chains say they’ve seen no impression on their Brexit preparations highlighting the size of the setback brought on by the pandemic.
The findings additionally highlighted how smaller companies are most uncovered to post-Brexit provide chain dangers, with 30% stating they’ve did not put the mandatory provisions in place in comparison with 19% of huge corporations.
Lack of preparation
The impression of COVID-19 signifies that UK producers at the moment are uncovered to a rising variety of provide chain dangers, with many ill-prepared to handle these.
Of these surveyed, 39% admitted they haven’t but taken any motion to handle their overseas change threat, and additional 36% unprepared to handle the chance of elevated product calls.
Greater than a 3rd of respondents have additionally did not take motion to organize for provide chain delays (35%), dangers to administration prices and processes (35%) in addition to the renegotiation of long-term contractual commitments (35%).
“This has clearly been a troublesome 12 months for producers who’ve needed to adapt to the numerous disruption of the pandemic, while making an attempt to beat the challenges across the uncertainty of the EU withdrawal, which is now only some weeks away,” stated Lockton managing accomplice Debbie Day.
Lockton additionally famous that the publicity to produce chain threat has appeared regardless of the spiralling payments that UK producers have already amassed as a part of their Brexit preparedness planning, which reaches into the hundreds of thousands of kilos for the bigger UK corporations.
“Every side of the provision chain must be reconsidered and notably what dangers companies have been uncovered to, and to what extent. We now have seen that many companies are taking the mandatory steps, by way of securing various suppliers and putting in the sources to work by the incoming tax and administrative adjustments, however a big proportion are nonetheless behind the place they have to be,” stated Ms Day.