Brexit: ‘Buyers should brace for change’
Buyers in the UK brace themselves for change and uncertainty as UK votes to leave the European Union.
After the UK voted 52% to 48% in favour of leaving the European Union, procurement professionals are already considering how changes to the UK’s relationship with Europe will affect their supply chains.
The value of the pound has plummeted, stock markets are volatile and the UK faces an indefinite period of negotiations with the EU and other trading partners.
“There now starts a long period of uncertainty while decisions are made about the UK’s future relationship with Europe,” said Daniel Ball, director of e-procurement provider Wax Digital.
While we may have to wait “before individual organisations can make decisions on their future supply management strategy”, Daniel suggests procurement professionals should start reviewing their supply chains now to understand which suppliers could be affected if the UK fails to agree a new free trade agreement with the EU.
Buyers for small and medium sized businesses might face other price changes as a result of the vote, said Phil Foster, managing director of Love Energy Savings.
“With the possibility of rising energy prices, small business owners should look to cut back wherever they can,” said Foster, suggesting “greener LED light bulbs, installing bigger windows… or adding movement detectors to turn off your lights automatically”.
Foster also flagged potential increase in airfares and changes to the recruitment market.