BREXIT BRIEFING NEWS 6 APRIL 2021
DESCARTES REPORT HIGHLIGHTS
IMPACT OF BREXIT & COVID ON SUPPLY CHAINS ...EARLY PREPARATION REMAINS KEY TO AVOIDING EXPENSIVE DISRUPTIONS
D
escartes Systems Group, the global leader in uniting logistics-
As predicted in Descartes’ 2020 research, Brexit has had a negative
intensive businesses in commerce, today announced the
impact on both business and the economy. Of the companies surveyed,
findings of its latest Brexit research report: Beyond Brexit:
90% have experienced disruption in their ability to trade in and out of
The Realities of Brexit for UK-EU Cross Border Trade. Following its
the EU in 2021 – with 20% experiencing significant disruption since the
2020 research on Brexit preparedness of UK companies, this latest
transition period ended. Despite the high level of concern revealed in
report analyses how business has been affected by both Brexit and the
the 2020 survey, 40% of companies have actually experienced worse-
COVID-19 pandemic and the level of uncertainty around the future.
than-expected EU supply chain performance, according to Descartes’
Undertaken by SAPIO Research during March 2021, the interviews
latest report. Additional key findings include:
with supply chain managers assessed the specific elements of EU trade that have been affected, the resulting disruption and the expected performance of supply chains in 2021.
• 80% of businesses reported disruption to their cross-border trade with the EU or Northern Ireland (NI), rising to 93% for medium and large enterprises
Key findings include...
• 40% have experienced delays in their supply chains
• Mixed performance: 43% of businesses have been impacted
• 37% have experienced increased cost of imports
negatively by Brexit in 2021 – but 19% of businesses are thriving in
• 36% have had to manage customs declarations
a post-Brexit world. The combination of COVID-19 on top of Brexit created unprecedented • Disruption reality: 90% of businesses have faced disruption since the end of the Brexit transition period.
challenges for businesses of every size, in every market. Confidence has been affected. Three quarters (76%) of companies confirm that COVID-19 disrupted their Brexit response.
• Economic impact of Brexit: 53% expect their 2021 turnover to be lower than if the UK had remained in the EU – and the average
However, a significant finding is that almost one fifth (19%) are actually
reduction is 29%.
thriving in a post-Brexit economy, with 35% of electronics, computer and telecommunications companies enjoying a positive outcome.
• Pandemic impact: 76% had their Brexit response disrupted by COVID-19.
Preparing early proved essential, allowing these companies to take a holistic approach by working closely with experts who understand the complexities of global trade and by putting solutions in place for
• Early preparation has proven key to success, with those businesses that started their customs filing preparations in 2019 (24%) and early 2020 (33%) thriving most.
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FORWARDER magazine
ISSUE62
customs declarations.