FEATURE
Ann McGregor, Chief Executive, NI Chamber; and Steve Harper, Executive Director, International Business, Invest Northern Ireland.
Brexit, one year on: New report assesses the costs and opportunities for business
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ne year on from the end of the Brexit transition period, 84% of businesses in Northern Ireland are dealing with increased costs, with 89% reporting increases in the time it takes to transport goods to or from overseas. According to an international trade report – “Brexit One Year On” – published by NI Chamber and Invest Northern Ireland, nine in ten of the region’s firms have experienced supply chain issues including rising shipping costs (77%), delivery delays (77%) and problems with product availability (72%). Two in three have experienced increased paperwork (65%), while two in five have experienced HGV driver shortages. Northern Ireland businesses have also reported higher
shipping container costs compared to other UK-based traders. Working with the British Chambers of Commerce, NI Chamber and Invest NI surveyed local businesses who are currently exporting or aspiring to export in the near future, to assess the impact of new trading rules and global challenges on international trade. According to the survey, most businesses (85%) have evaluated their supply chain risk. Around two in three have conducted procurement due diligence and a similar share have diversified suppliers to minimise risk. Some 59% have changed supply routes. Almost one in four have brought some or all of their supply chain back to Northern Ireland suppliers. Commenting on the report’s findings, Ann
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McGregor, Chief Executive, NI Chamber, said: “The last 12 months have brought substantive changes for exporters and this report brings into sharp focus the serious issues they are facing with regards to supply chain difficulties and additional paperwork. Issues with additional red tape must be resolved and NI Chamber continues to work closely with the NI Executive, UK and EU negotiators on this issue. “Northern Ireland is not alone in facing trade disruption from the new trading arrangements. Many UK businesses are facing similar constraints, particularly in terms of transport delays. However, the findings suggest that the cost pressures that have been placed on local businesses are more acute, which potentially places them at a competitive disadvantage. “There is a lack of awareness from UK businesses about the Protocol. This highlights the need for education of GB businesses to support how they trade with their Northern Ireland counterparts. There is also a general need to raise awareness and engage much more proactively with businesses in Northern Ireland around all aspects of world trade agreements. “Despite the significant challenges, this report is further illustration of the potentially huge benefits of dual-market access. Northern Ireland companies have much more concrete plans to grow both domestically and internationally, compared to the UK average. “One of the biggest challenges to realising the potential benefits is uncertainty around the Northern Ireland Protocol: businesses cannot trade with uncertainty. Our exporters need clarity around the Protocol, less paperwork to complete and better access to skills. If policymakers can resolve these issues quickly and in partnership with business, Northern Ireland finds itself at the starting blocks of a unique opportunity at a time when we really need it.” Steve Harper, Invest NI’s Executive Director of International Business, added: “We are very aware of the many challenges Northern Ireland businesses have faced over the last year and we’ve been working in partnership with businesses to help overcome these challenges. At the forefront of this has been increasing both our communication with businesses and our support. “It is encouraging to see that knowledge of the many issues of Brexit is higher within the Northern Ireland business community than in the rest of the UK. Many businesses have already demonstrated that they can adapt and have successfully won new business globally and many have shortened supply chains to ease the pressures. “We want to continue to help NI exporters to grow globally. I would encourage those already exporting and potential exporters to engage with Invest NI so we can provide the support needed to overcome the challenges and ensure we are well positioned to seize the opportunities ahead to drive growth and prosperity in Northern Ireland.”
