How Businesses Are Preparing for Brexit
To go global is a move tied up with its own challenges, but for companies going international, it’s full of even more unknowns. Here are just some of the ways global businesses are preparing for Brexit – from practical to more creative solutions, scrutinising supply chains, and redrawing contracts to make sure they’re prepared for March 2019.
Taking a closer look at supply chains
Every business needs to be sure that, in the lead-up to Brexit, all of its suppliers are prepared and able to meet their contracts. Assessing the risk of this is a big, but necessary undertaking in the lead-up to Brexit. There will be more time allowed for this through a transition deal, but this only will only apply to supply chains within the EU. There may be problems for UK companies who trade with other countries outside of the EU.
Building corporate customs infrastructure
British companies will need to fill in customs declarations for all goods crossing the EU border, depending on the terms of the UK leaving the single market. Preparing for this isn’t an easy task, and requires businesses to update their operations software. The EU currently requires eight copies of each customers declaration; it is predicted that the number of customs declarations will rise from 55m to 255m annually.
Dublin’s “Brexit-busting” ferry
The Celine cargo ship has recently been moored at a specially built quay. It can accommodate more than 600 lorries, and is twice the size of any ferry operating out of Dublin Port.
It’s hoped that the vast size of Celine will allow it to carry hundreds of thousands of additional tonnes of freight to and from the continent each year, avoiding Britain and the increasingly more difficult border controls following Brexit. The idea is that Celine, and other ships like it, will create more direct routes into mainland Europe post-Brexit, and allow business to continue to boom.
Recruiting workers from other countries is crucial when it comes to expanding your business abroad, with obvious positive pay-offs. However, within the construction industry, almost a quarter are preparing for conditions to worsen over the next 12 months, according to property and construction consultancy Gleeds, and one of the biggest concerns is labour; within the sector, 26% of the workforce is from the EU. If Brexit puts EU workers off, the concern is that labour costs could rise.
Insurance and risk management is playing a big part in mitigating these risks, according to a Telegraph post by Allianz Insurance. This includes insurance for property and liability, as well as surety bonding. And for risk management, Allianz advises taking on more apprentices to ensure and encourage a new stream of talent in the sector.
Understanding employee’s rights to work
One of the reasons for, and consequences of, expanding into international market, is having employees from all over the world. However, Brexit may make this more complicated.
Companies will need to understand the rights and statuses of all EU employees, to ensure they’re employed legally after Brexit. They should be aware of where their employees work and their immigration status, and should regularly review their employment contracts.
With Brexit continuing to cause confusion, businesses are understandably uncertain where they stand. Get in touch with Galvin International to find out how we help and support businesses that are expanding overseas. As an international expansion concierge service, we cover every stage of the process – from initial planning to on-ground implementation.