Survey Finds Business Leaders Are Optimistic About Brexit But Fear It Will Impact Resiliency Of The Supply Chain
Avetta interviewed executives from diverse industries about Britain’s exit from the EU; survey also finds concerns about administrative and legislative changes
Avetta surveyed more than 120 business leaders and found they expected Brexit to have the biggest impact on the resiliency of the supply chain in the short term and the future. Avetta partnered with the Executive Network Group to gather feedback from C-level executives; 72% of the respondents say the supply chain will experience the biggest changes from Britain leaving the European Union (EU).
One director in the aerospace industry has already seen some challenges. “We have witnessed a shortage in raw materials and delays within our procurement function.”
The findings included in the Brexit Impact Survey Report show half of the respondents expect Brexit to impact legislative changes; nearly one-third (29%) anticipate changes in documentation and administrative processes; 16% on sales revenue; 11% on market/sector competition; and 10% on hiring permanent staff. Only 5% saw an impact on engaging temporary staff and keeping sustainability, environmental and social value commitments.
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Executives were also asked to provide comments. Here are some examples:
- “Brexit has already impacted the [supply] of spare part[s] and deliveries, within our supply chain [of] goods procured from Europe. Our suppliers are struggling to source these in a timely manner, which impacts our ability to meet deadlines.”
- “UK talent will exceed current market place expectations.”
- “Brexit is considered a big opportunity for us; there may be teething problems in the short term with more benefits long term for business.”
Overall, respondents are optimistic about Britain’s future. About one-fourth of the respondents agree Brexit will have an impact on hiring and flexible staffing needs in 2021. However, 39% expect Brexit will affect their hiring strategy for EU workers. Only 11% of the executives say they’ve had to strengthen their team to deal with the changes.
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The survey suggests executives will need to prepare for the following issues:
- Mitigating the impact of supply chain disruptions
- Understanding legislation affecting corporate waste management and recycling
- Taking a proactive approach towards procurement and long-term sustainability
- Developing talent pipeline and understanding restrictions to free movement in the EU
The report offers this conclusion: “As with any period of significant change, each organization will have its own unique set of challenges…those (who) invest in the education and upskilling of their workforce, may well be the ones who see a bright future post-Brexit.”
Avetta recently completed analysis of tens of thousands of suppliers in numerous industries worldwide that shows companies using the Avetta Connect™ Platform have been able to reduce the number of safety incidents and lost work days by more than 50% compared to industry averages. The data also shows that over a 10-year period, suppliers in the Avetta network experience a 7% to 12% year-over-year decrease in incidents.
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