We originally posted our Brexit statement online in January of this year - please see here.
Since then, nothing, practically, has changed and nor will it until there is a political denouement by the UK Government and the EU.
This topic has featured in every supplier and distributor meeting we’ve held this year and whilst some distributors have undertaken to hold more stock within the UK and increased warehouse capacity to accommodate, this isn’t a practical long-term solution or position. In one case distribution stock-holding on regular run-rate has increased from 4 weeks stock to 8 weeks but this can only be considered as a short-term contingency.
The situation is changing rapidly. After the leadership change ‘no deal’ looked more likely but more recent events have perhaps changed that and a general election may not clarify the situation in the case of a hung parliament.
In the case of a no-deal Brexit, the effects on supply and currency exchange are likely to result in temporary constriction and currency fluctuation. Trying to look for positives, the IT industry is not likely to be the worst affected sector. The effects on logistics, transport, pharmaceuticals and UK manufacturing industries are much more acute.
Our advice to customers for guaranteed continuity of supply based relies on a practical approach. If you have IT projects in flight requiring hardware, or on-going roll-outs to satisfy, then purchase in advance of mid-October 2019 with sufficient quantity to manage the transition and beyond.
If you have any questions about this subject, please do not hesitate to get in touch with me directly here or call me on 0113 387 1070.