Carousel Logistics survey exposes concerns over Brexit

Half of UK and German manufacturing businesses believe they have time to prepare their supply chains for Brexit - but are calling for clarity ahead of the split.

The figures comes from Sittingbourne-based Carousel Logistics.

In a survey of senior logistics and supply chain professionals from 80 multinational organisations in the UK and Germany, Carousel found that 46% believe they will have time to prepare for Brexit - with 18% saying they will not - but 50% still feel in the dark about the specifics of what is required.

Carousel Logistics is based on the Eurolink estate in Sittingbourne
Carousel Logistics is based on the Eurolink estate in Sittingbourne

Only one in five UK companies feel informed about the consequences of Brexit; as one respondent commented: “Until we receive more guidance on the likely outcomes of trade negotiations it’s difficult to plan anything.”

Ease of movement and an increase in red tape is named as the number one concern in the UK and Germany, with additional tariffs on UK imports and the strength of the pound coming in close behind.

Graham Martin, CEO of Carousel, based on the Eurolink estate, said: “Brexit is the latest in a long list of disruptive forces to have shaped the logistics space in recent years, and it’s positive to see that organisations in the UK and Germany are ready to adapt to the challenges of Brexit.

Carousel Logistics' Graham Martin says firms need clarity
Carousel Logistics' Graham Martin says firms need clarity

"Nonetheless, many are still desperate for clarity on the specifics of the future relationship before they do put a plan into action.

“As history has taught us, digitalisation is the key to maintaining and even improving services, within challenging circumstances. A failure to innovate at any time could leave some organisations far behind, and there is a chance that Brexit could widen this gap if action can’t be taken by organisations soon.”

Added its European chief operating officer, Thomas Griese: “Companies will need to adapt quickly to market needs and open-up new opportunities as they present themselves. As such, it will be increasingly important for logistics service providers to step up to meet these changing demands, with the priority being on providing the right technology systems, flexible network options plus economies of scale. All three will be vital in a post-Brexit landscape.”

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