There is a lot of talk of project fear, especially with the publication of the documents outlining issues that may arise from a "no deal".
There are real issues around. I have been working with an consumer goods importer and exporter this week they have no idea of what steps they need to take to protect their business and 200+ employees because they don't know what form of Brexit is going to come about. They don't want to spend too much money on import / export software at the moment as they don't know if they will need it. At the same time they don't want to contract with a freight forwarder to do it either as this will cost if it's eventually not needed. They are worried about their duty deferment account as they expect with WTO rules, they would need HMRC to increase the limit to £5m. HMRC have not replied to any communications.
A pharmaceutical company we are working with has been told to hold 6 weeks extra stock. They just can't get hold of enough of some products. Some don't have the shelf life and prices are up about 8% because of the sudden demand. The cost to their cash flow is huge. They sell about £200m a year. Profits are fine at about £1m. They have to find about £25m for the extra stock with no help and before price rises. Their cashflow just doesn't support it at the moment.
Of course it's all project fear - my backside!
Last edited by: VxFan on Wed 11 Sep 19 at 10:30
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