The majority of mid-sized businesses are now preparing for the possibility of a No Deal Brexit, with research showing that manufacturers are starting to stockpile goods.
According to a survey conducted by business consultancy Grant Thornton, only 22 per cent of mid-sized companies have done no planning for Brexit. Of those who have, three quarters are now factoring in a ‘No Deal’ scenario to their plans - up from 56 per cent six months ago.
More than a third of businesses actively planning for Brexit have also developed a contingency plan, up from just 1 per cent six months ago.
Andrew Howie, partner and head of international at Grant Thornton UK LLP, said:
“Over the past six months, businesses have realised they can no longer afford themselves a ‘wait and see’ approach to preparing for Brexit and have started to take the necessary steps to fortify their operations. As the UK government itself steps up its ‘No Deal’ contingency planning, businesses would be wise to plan for the worst, whilst still hoping for the best.”
Research also shows that manufacturers have begun stockpiling supplies ahead of Brexit. Rob Dobson, director at IHS Markit, which produces a UK Manufacturing Purchasing Managers’ Index (PMI), said:
“Stocks of purchases and finished goods both rose at near survey-record rates [in December 2018], while stockpiling by customers at home and abroad took new orders growth to a 10-month high.”
Meanwhile, the government has launched a website to help businesses prepare for exiting the EU, which can found at https://euexit.campaign.gov.uk. An online tool is also available to help businesses find specific information for their industry.
For the latest manufacturing news straight to your inbox, join the Manufacturing Network today.
To help you business prepare for a no deal scenario we are hosting a series of events, find out more here