Half of logistics companies yet to start ‘Brexit planning’

London, UK: Uncertainty is to blame for the fact that only half of the UK’s logistics sector have started planning for Brexit, according to a new report.

The study by the Chartered Institute of Logistics and Transport (CILT) and Statista found that only one in three logistics firms have established a team to work out their Brexit strategy, and only one in five have made use of external help.

The study also found that 18% of logistics companies are holding back from making investment decisions and 15% are planning to move part of their company abroad. Some 13% admitted they haven’t taken any steps for Brexit.

These are some of the findings from CILT and Statista’s new study, called UK Logistics Monitor 2019, which identifies current logistics developments and trends, while offering insights into the topics of HR, recruitment, technology and Brexit.

In terms of how leaving the EU will affect business, 39% of logistics companies believe that Brexit will have a negative effect on day-to-day operations, while 32% believe that Brexit will have a bad effect on their company’s economic situation. Another 40% express a high uncertainty regarding economic effects on their company.

CILT chief executive Kevin Richardson said: “With so much uncertainty around what Brexit will mean for the supply chain sector, firms are understandably struggling to plan. The profession urgently needs clarity on how Brexit will affect operations.

“With the supply chain being such an important part of the UK economy, underpinning almost every other sector, the UK government needs to act quickly so that we can prepare accordingly.

“Whether a deal is agreed or not, there is a strong possibility that Brexit will cause months of severe disruption and CILT encourages all of its members to stay agile, hope for the best but prepare for the worst.”


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