With a no-deal Brexit suddenly a real possibility, what are firms doing to prepare themselves and mitigate the risks? As part of our reader survey last month, we asked respondents to tell us what actions they had already taken in preparation for Brexit.
Question: Please briefly outline any specific actions you have already taken (following contingency planning) to mitigate the impact of Brexit upon your business?
"Included Brexit questions in procurement and incorporated Brexit clauses in contracts"
- "We have made the necessary amendments to our standard preliminaries documents"
"Will be closing the business if no deal becomes a reality"
- "We are looking to only employ EU Labour that has been settled in the U.K. for an extensive period exceeding 12 months and are committed to remaining. We likewise suggest to our clients that they diligently consider how long their contractors and or sub contractors are or have been established in the U.K."
- "Make employees aware of what could happen. Given employees access to an immigration law firm."
- "I can not export and import anymore"
- "Subcontractor labour from overseas (not working in UK). Focus on our work in non-EU/UK countries, as there are less likely to be affected by Brexit."
Readers on: setting up offices in the EU
- "Set up new HQ abroad"
- "Create offices outside London"
- "Offices abroad, sharing of resources"
- "Having one company registered in the UK and another one registered in a EU country"
"The business has created sister company in Ireland. All staff will be moved to Dublin on a no deal scenario"
- "Setting up additional capacity in the EU to move production and R&D out of Britain"
- "Research/discussion centred around setting up a European division"
- "Opened an office in Luxembourg"
- "Opened serviced offices in Munich and Milan"
- "Relocation to Amsterdam"
- "Engaging in markets outside the UK. initial investigations on setting up satelite offices outside the uk (to access skiiled architectural staff) coupled with readiness for uk redundancies."
Read: “We are setting up in the EU” - How is your organisation preparing for Brexit? One reader’s response
Readers on: ringfencing funding, cutting back on spending
- "Currency reserves. Reliable transportation cross channel."
- "Ensure additional funding is in place to overcome labour, material shortages. Loss of market value on property, loss of sales."
- "We have contracts in USD and have agreed all our UK subcontracts and Consultants fees in USD to de-risk the Exchange rate risk. Our major worry was the effect of Brexit on the GBP to USD exchange rate."
- "bank loans"
- "Building a war chest, slowing recruitment, slowing expenditure"
"cut back on none essential spending"
- "Bidding for eu funds!!!"
- "We cannot really take any actions as we are Architects and we do not know the effect Brexit will have on us. We only know that if there is a no deal Brexit it will be a disaster for us!"
- "extended O/D facility and increased loan facilities"
- "Changed services provided - stopped work that requires companies to invest"
- "Increased cash reserves"
- "Not making any investments until the situation is clear"
- "Dropped project in q due to low valuations based on brexit uncertainty - seeking alternative opportunities"
- "Selling and mothballing sites before construction"
Readers on: the lack of information
- "without the presence of specific Brexit parameters can not be planned"
"None - how can you plan when information is so poor"
- "Very little as it's really difficult to obtain reliable and consistent guidance"
- "So many unknowns, this is almost impossible to usefully do"
- "None due to not knowing where this country is going. Our government has provided no useful information to allow any planning"
"We have polled our supply chain for their thoughts and forecasts. what is clear is that no one has a clue."
- "We have been looking into the various scenarios to determine if and what type of visas will be required for travel to work in Eyrope post brexit but there is a lack of clear advice available at the current time. This is making planning very hard."
- "How can we put anything in place when we dont know what the deal will be"
- "There is not a lot we can do until we know if Brexit will definitely go head"
- "No point, the government havent got a clue what they are doing and/or agreeing, how do you expect a private company to respond"
- "still have no idea what it means to us in business so very difficult to try to prepare. just trying to forecast a worst case scenario of all work drying up!!"
Readers on: Don’t feel we will be impacted/don’t work in EU
- "No impact expected on my current and future business plans."
- "Materials sourced from UK"
- "We anticipate no effects to your workload as we have no exposure or reliance on EU derived revenue. All of our clients are UK-based SMEs and MMEs whose operations are within the UK economy only. In fact we anticipate an increase in business as the UK market grows and as import duties are reduced following its ability to become far more competitive in the international market"
- "Nothing that happens will directly affect current business, it might reduce business if householders panic in the future"
- "None what so ever."
- "not applicable. UK only service not reliant on EU"
"We havent yet seen impacts and as such it is currently 'business as usual'."
- "Most projects are UK based so impact is ony on supply chain which we have good relationships with"
- "critical labour has been identfied but we dont see it as having an 'overnight' impact"
- "Doesn't affect my company. We work in the Middle East."
- "There is no impact in my business due to brexit"
"Confirmed with Brussels clients that projects will continue wither way."
- "Nothing additional; international compavy able to adjust supply lines and draw upon expertise from around the world; EU is a minor market."
- "none whatsoever, life goes on"
- "I have the balls to believe in this nation in a no deal!"
Readers on: the more unusual preparations...
"Hoping for the best"
"Moving to France"
"I have emigrated"