Following the decision made by the UK to leave the European Union, the pure technology group has been monitoring developments with the negotiations between the EU and UK Government in order to mitigate any issues that arise with regard to supply of goods and services.
We wish to reassure all customers that pure technology group is working closely with its supply chain and global partners to suitably prepare and plan for differing scenarios. As reported in the media on a daily basis there is still a high degree of uncertainty on the situation, so we will continue to monitor and plan accordingly. The following is a summary of our actions to date, managed in conjunction with our partners.
Supply of IT Goods & Services
The biggest concern with Brexit is that British ports and HM Customs are not yet adequately prepared for a no-deal Brexit. This could potentially result in significant delays to supply of IT goods in the UK as non-perishable goods may be de-prioritised in the event of border delays or backlog.
In order to overcome possible delays several major broadline UK IT Distributors are increasing their UK stock-holding and UK warehouse facilities. Distributors also have in-house expertise to process imports and exports from/to the EU and non-EU countries alike and are currently investigating goods affected by tariffs (controlled goods). Whilst it appears at this time that all IT and Consumer Electronics goods do not attract WTO tariffs, barriers currently being created between the USA and China, may have a direct effect on some goods and deserve attention as the situation develops.
pure technology group does not manufacture goods, nor does it have significant trade outside the UK excepting isolated instances of fulfilment overseas for UK customers. Notwithstanding, we can continue the provision of goods and services abroad via our global supply chain and we undertake to maintain services prices which are wholly within our control. We hold minimal stock for warranties on service contracts plus project roll-out or call-off stock. We are now suitably prepared to hold increased stock in our own warehouse facilities should a customer wish to guarantee continued supply for the period January – June 2019 or beyond.
pure technology group currently has just two employees classified as EU27 citizens and we will support these staff with visa applications via the EU Settlement Scheme, operable March 2019 - June 2021.
Future recruitment policy will continue as is, i.e. hire the best person for each role regardless of circumstance. This may be impacted by whatever result Brexit delivers but we remain steadfast in our aims.
EU regulations will cease to have a direct effect on the UK once it leaves the EU, however, the UK has taken steps already to transpose most EU regulations into English Law (e.g. personal data). We, therefore, do not anticipate a significant effect on the UK’s ability to comply with matters such as safety or transfer of personal data post departure from the EU.
In the case of a no-deal Brexit, the effects on currency exchange may be dramatic and might result in significant fluctuations to the prices of IT goods with immediate price rises from vendors. pure technology group will ensure such rises are well communicated with as much notice as the vendor allows.
Brexit Checklist and Resources
Whilst the situation may currently be very uncertain, we believe planning for every business is appropriate. The Chamber of Commerce provides a free starting point, which can be found at: https://www.britishchambers.org.uk/page/brexit/business-brexit-checklist.
Thank you to all the partners who continue to contribute and advise on our planning.