moneycorp Bank has conducted research with over 170 businesses that are trading internationally, to understand how they are preparing for the future, with Covid-19 still present, and Brexit on the horizon.
While 18% of UK businesses trading internationally saw an uptick in demand, others have experienced the pandemic very differently, the research shows:
• Over a half (52%) have suffered from reduced demand
• 30% have suffered delays and uncertainty over the arrival of goods
• 17% have reduced the volume of products ordered through specific suppliers
• 10% saw a reduced web traffic
• 6% found that they had to order through more costly suppliers
Consequently, there’s been a whole range of steps businesses have taken in order to shore up operations, and in fact, 43% have said that they’ve changed their business model altogether as a result of Covid-19.
Despite having made changes to adapt to the challenge of Covid-19, the research shows that businesses haven’t explored ways to safeguard their supply chains to mitigate the risks, and benefit from the opportunity that Brexit could bring. 88% of UK businesses trading internationally have admitted that they haven’t looked and aren’t going to look at switching their supply chains in preparation of Brexit.
Lee McDarby, Managing Director of Corporate Foreign Exchange and International Payments at moneycorp comments: “With less than 100 days to go until the UK leaves the EU, it’s vital that businesses get ready for the transition that will take place.
“Fundamentally, the way we conduct business will change. Companies need to understand how this change will impact their operations, and what mechanisms need to be put in place to ensure they thrive post-Brexit. One thing that businesses can be sure of, as the 31st December approaches, is turbulent market winds. Now is the time to be assessing your currency exposure, to ensure international supply chains do not end up eating into British businesses’ bottom line.”