Posted by: Richard Walters Thursday 15 December 2016 16.21

Part 6 of a 6 part Food and Drink Brexit series

It is too early to predict with any certainty how Brexit may impact businesses, particularly without clarity on exit terms. However, businesses can consider the emerging scenarios that may arise as result of UK-EU negotiations. The extent to which firms are affected by, and can react to these scenarios, depends on a number of factors including geographic scale, levels of existing investment in the UK, and industry sector. Until then, the UK will continue to have full access to the single market without any tariffs or regulatory restrictions.

This six part Brexit series examines some of the key focus areas that businesses should consider when looking at their supply chains and longer term growth strategies.

Part 6: Capital investments

Brexit has caused many firms to review their planned capital investments. A number of UK based companies are still planning to invest in the UK, however, the attractiveness of the UK as a foreign investment proposition has reduced substantially. The tendency in uncertain times is to rebalance the mix of low and high risk investments. Firms looking at major infrastructure investments may choose to defer their decisions until they have a better view of the future, leading to a potential reduction in Foreign Direct Investment.

What should businesses consider and what can firms do now?

• Review your planned investments and ask if they are still the right things to do. The speed at which investments are made is a lever that firms may be able to use to mitigate any perceived risks.
• Consider the sources of finance and flow of funds related to supply chain. Current arrangements may not be the appropriate in the longer term

Contact

To discuss how we can help your food and drink business, contact Richard Walters, Principal Consultant on 01442 872298 or by .

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Food and Drink Businesses Blog Series: The impact of Brexit of your supply chain

Part 1: The customer proposition

Part 2: Sourcing and supplier base

Part 3: Production and distribution networks

Part 4: Talent and skills

Part 5: Impact on profitability