Brexit is raising many questions and causing a feeling of uncertainty to spread among companies. We asked 101 companies about the possible scenarios which they are preparing for.
German companies play an important role in the UK market. They employ roughly 412,000 people and invest approximately EUR 118 billion in the UK directly. This makes them a driver of growth in numerous sectors, from the automotive to the pharmaceutical industries.
But what will be left? Brexit is looming on the horizon and affecting the strategic plans of companies these days. It is also the dominating topic in our current German-British Business Outlook (GBBO). In order to obtain a realistic picture, we joined hands with the British Chamber of Commerce in Germany (BCCG) and asked 101 companies with German subsidiaries in the United Kingdom and UK-based subsidiaries in Germany for their opinion on Brexit.
Half of the surveyed companies are not prepared for Brexit
Just a few days before the next decision, almost half of the surveyed companies have not yet prepared for Brexit because of the variety of possible scenarios. While a no-deal Brexit appears to be the most likely outcome at the moment, a deal or an extension of the deadline are still possible.
No matter how things play out, many companies predict that they will be affected by Brexit. Forty per cent of the surveyed companies expect Brexit to have a large or very large effect on their business. Roughly one-quarter predict increasing customs and trading costs, as well as interruptions in the supply chain. Conclusion: Most companies intend to revise their investment and recruiting plans and relocate their offices to continental Europe.
You can find more responses here.
© 2019 KPMG AG Wirtschaftsprüfungsgesellschaft, ein Mitglied des KPMG-Netzwerks unabhängiger Mitgliedsfirmen, die KPMG International Cooperative (“KPMG International”), einer juristischen Person schweizerischen Rechts, angeschlossen sind. Alle Rechte vorbehalten.