A thread on this kind of reaction which seems to question why business isn't as prepared as it "should be" (since I see this narrative gaining traction in some political quarters) /1
Most SMEs don't have large compliance departments and can only prepare with clear information about alternative future arrangements, much of which still is not known - even under-no deal (will we have more BIPs and where for example?) /2
Many firms actually have day jobs to get on with, like keeping a business afloat under known quantity circumstances, and the idea of throwing resource at a problem which not exist in March or foregoing contracts before necessary is hardly savvy or prudent /3
When it comes to manufacturing, simply acquiring or buying an operating license in another EU country not an option. Overhauling supply chains or shifting production i
a much more significant endeavour and the profit margins this can eat away at are much smaller than fin servs /4
a much more significant endeavour and the profit margins this can eat away at are much smaller than fin servs /4
As opposed to services, for manufacturing the choice often simply isn't between expanding to the EU, but an either/or one on UK or elsewhere - esp on production location. No one wants to disinvest lightly, and nor do we want them to...right??? /5
Many firms been waiting for the much-anticipated Govt no-deal notices, which were very general in many instances and did not address many unique product-routing queries involving both import and export from third countries. No govt help for this advice, unlike Ireland + Dutch /6
Govt may have unlimited resource and capacity to throw at problems as a contingency approach (amazing normally fiscally prudent Brexiteers dont care when it comes to no-deal prep), but SMEs in the private sector do not. /7
Would someone care to tell me how you model as-yet unknown border delays in the event of no-deal when planning as a company for #Brexit? As far as we know, Govt is not saying it would relax import controls for EU goods - to be treated as RoW products do, per its no-deal notice /8
There are still many unknowns on the full range of new information and infrastructure that HMRC + other Govt agencies would require from businesses and for them to put into place. Knowing that first is necessary for making changes to firms' trade management systems /9
Do people really think that most companies have lawyers at their disposal to make sense of interpreting how EU regs would mean for their complex supply chains and what adjustments to make in response? With no real clarity on what no-deal looks like? /10
Most trade agreements or changes to trade arrangements build in adjustment periods AFTER the text is agreed - even just for tariff phaseouts. Try applying that in reverse but with no anticipated transition for the range of no-deal impacts in advance /11
One last example - just talk to the road haulage/transport and logistics industry which requires actual clear govt policy and/or agreements to operate across borders. Zero clarity on this from either side as yet. Try planning in that environment /12
So to sum up - of course there are bare minimum steps businesses can should and have been taking to prepare. But there are also clear limits on what is feasible without losing huge amounts of money, esp for smaller firms. Dont blame them for difficulty of being fully ready /13
