Thursday 21 June 2018

Two-thirds of businesses still haven't stress-tested post-Brexit supply chains

Michael Costello, BDO Ireland managing partner
Michael Costello, BDO Ireland managing partner
Colm Kelpie

Colm Kelpie

Two-thirds of businesses questioned for a survey here revealed they haven't yet looked at their supply chains to see how they might be impacted by Brexit.

The report also highlights there was a strong finish to 2017 with 51pc of Irish businesses recording increases in current business activity.

About 30pc said their activity levels had stayed the same and 18pc reported lower levels, according to the survey of 350 Irish businesses by the accountancy firm BDO.

Michael Costello, BDO Ireland managing partner, said Brexit will hit Ireland's "unprepared" supply chains hard.

"Although there is no clarity as to what the full costs of Brexit will be going forward, the one certainty is that once Britain leaves the EU there will be a requirement for exporters and importers to make declarations and pay customs duties," he said.

"This will involve costs for customs compliance and additional costs associated with delays at borders," Mr Costello added.

Meanwhile, Peugeot-maker PSA has unveiled plans to raise output at its British Vauxhall van plant, in a pre-Brexit show of confidence that will raise pressure on sister brand Opel's German workforce to offer concessions in labour talks. PSA, which last year acquired Opel/Vauxhall from General Motors, will build Peugeot and Citroen models as well as the next Vauxhall Vivaro van in Luton, north of London.

Elsewhere, Britain's construction industry seized up due to heavy snow last month, prompting the biggest drop in activity since just after 2016's Brexit vote, an industry survey showed yesterday.

The IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) slumped to 47.0 in March from a level of 51.4 in the previous month.

It was a bigger decline than had been predicted by any economist in a Reuters poll, which on average pointed to a modest drop to 50.8.

The 50-point line divides expansions in activity from contractions.

It was a bigger decline than had been predicted by any economist in a Reuters poll, which on average pointed to a modest drop to 50.8.

The 50-point line divides expansions in activity from contractions.

House building was little affected, but the 'Beast from the East' storm clobbered other sectors, the survey showed.

Indo Business

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