Businesses around the world need to prepare to face the reality of Brexit as it is going to leave a long-term impact on all sectors.
UK’s decision to leave the EU is not
uncertain anymore, and the impact of this decision will be visible not just on
these two countries; rather, on the businesses around the world. Whether you
are involved in some multinational trades via the United Kingdom, are exporting
goods directly or indirectly from the UK, or send supplies to the UK; Brexit is
going to affect your business by a considerable level.
In all the above cases, you have to
suffer both in terms of timelines and costs as well. But the overall impact can
be estimated based on how your business is prepared for this scenario.
The logistic sector will have a great impact on Brexit, and it can be analyzed as below.
Importing goods from EU to Britain:
Along with most other EU member
states, Britain also has a service-based economy. This means the system is
heavily dependent on natural resources being imported from other countries.
There are many EU countries that are closely connected in terms of their
dependence on petroleum and fuel product import activities. Out of this, 27% of
products come from Britain, or they pass through the EU while traveling to
In case Britain exits and it loses
the opportunity to be a part of this single market, the huge tariffs will be
applied for the import and export of goods between the UK and other EU
countries. As a result, these goods will become very expensive for common people.
The logistics industry will naturally find it more difficult to operate. The
rise in export prices will definitely create a bad scenario for the export
activities throughout the UK and Europe at large.
Freedom of Movement:
You might be aware of the fact that
residents of all EU member states are currently allowed to work, live, and move
between any of these associated countries. Over the past several years, Britain
has obtained several benefits from this agreement. EU workers are currently
serving a large industrial sector in Britain. Furthermore, almost 10% of the
commercial drivers within the United Kingdom are from EU nations. Although
Britain has offered many great opportunities for these workers to earn and
survive, many of them are now interested to move back to their homelands.
Other than this, the residency rights
of thousands of EU workers that are presently working in the UK have become a
challenge for the logistics industry. Like most other countries, Britain is
also experiencing a huge shortage of experienced drivers to handle supply
movements between different industries and markets. In case Britain decides to
restrict the EU based drivers to work in the country, the chances are that it
may boost earning opportunities for the British drivers. However, it is still a
question of whether this scenario will motivate upcoming generations to choose
a driving career or not.
One more possibility among all the
rumours and happenings is that perhaps Britain will open overseas recruitment
for the logistics industry in Britain. The British government is now looking
for new opportunities to avoid talent drain after Brexit, and to handle the
situation, they may even create a special immigration solution in many sectors.
Control for customs and border
As per the Schengen agreement, the
residents of countries that are EU members are allowed to cross the borders
without any special treatment. Being a part of the single market also means
that services and goods can be traded freely in the entire zone. But in case
Britain leaves the membership, the rules, customs, and border controls may
change. With this scenario, the border between the Republic of Ireland and
Northern Ireland will be considered as EU member states. But as the trades
between these borders are strong, the changed border controls may pose billions
of dollars of cost on businesses. The logistics industry may find it difficult
to handle the burden.
Moreover, this is just an example of
border control; there will be many other borders that will be highly affected
by new policies, and ultimately, they will put more burden on businesses.
Here we few highlights on how Brexit
will affect the logistic sector:
In case you are a part of the logistics industry in the UK, it is high time to prepare your business for all these potential changes. Experts advise using warehouse software to handle your logistics with more ease. These advanced software tools are designed with many impressive features that can help you handle inventory, shipping, and movements within the store as well. Be wise and pick the most efficient warehouse software that can meet the rising demands. Train your teams and employees to make the best out of these latest tools. This strategy will undoubtedly help you reduce the negative impact of Brexit, and assist you with finding new opportunities for growth.
Author Bio: I’m Jaylin: SEO Expert of Leelija Web Solutions. I am a content manager, and the author of freeopenbook.com and a full time blogger. Favourite things include my camera, travelling, caring my fitness, food and my fashion. Email id: firstname.lastname@example.org
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