According to new research from R3, one third (33%) of businesses in the UK are concerned about the potential impact Brexit will have on their suppliers and customers.

Supply chain Brexit concern among business leaders

Research published by insolvency and restructuring body R3 has found that 11 per cent of businesses have reviewed the potential impact of Brexit on their suppliers and customers and are 'very concerned' by what they had found. The study also suggested that a further 22 per cent were 'somewhat' concerned.

The research (carried out for R3 by BVA BDRC), which surveyed 1,200 senior business financial decision-makers, also discovered that:

• 16% of businesses said they had not yet reviewed the potential impact of Brexit on their supplier and customer network
• 38% of businesses had reviewed the impact of Brexit on their suppliers and were either 'somewhat reassured' (23%) or 'very reassured' (15%)

Unsurprisingly, most larger businesses had reviewed the potential impact of Brexit on their supply chain and customer base, with only 3 per cent of companies employing over 250 people failing to review the potential ramifications. However, almost a quarter (23 per cent) of businesses employing up to 49 people said that they had not yet reviewed the potential impact of Brexit.

Of the four sectors covered by the research (manufacturing, construction, retail, and services), a construction sector business was least likely to have reviewed the impact of Brexit on their supply chain, with 18 per cent of businesses saying they had not carried out reviews. Meanwhile, the manufacturing sector was the most concerned about the impact, with 37 per cent saying they were 'somewhat' or 'very' concerned about Brexit.

Duncan Swift, R3 President, says: "It's a serious worry that a third of UK businesses feel they are exposed to a supply chain risk as a result of Brexit. A key part of preparing for Brexit is looking at how it affects your supply chain and customers. It's all very well making sure your own business has put adaptation plans in place, but these plans might not help if the businesses you depend on - customers and suppliers - are unprepared."

How can The Gazette's data service help mitigate the effects of insolvency in the supply chain?

Insolvency in the supply chain can affect all businesses, regardless of turnover. But getting insolvency information quickly can help businesses, contractors and project managers take steps to mitigate disruption as soon as possible.

The Gazette's data service can help you identify up to date information relating to your supply chain partners, helping you anticipate potential problems and minimise risk exposure.

Here are the insolvency routes covered within The Gazette that you can receive through the data service:

• Administration

Administration is a procedure for which a licensed insolvency practitioner is appointed to oversee and protect a business.

• Administrative receivership

Administrative receivership involves control of a company being handed over to an administrative receiver, who looks to sell the company's assets so that the appointing lender can recover money owed to them.

• Creditors’ voluntary liquidation

Creditors’ voluntary liquidation is when the directors of a company voluntarily decide it is time to liquidate the company. A licensed insolvency practitioner is required to help them to do this.

• Members’ voluntary liquidation

Members’ voluntary liquidation is a process where the company's shareholders have decided to wind up the company to distribute the assets after the payment of any debts, and then close the company.

• Winding up by the court

A winding up order is a court order that forces an insolvent company into compulsory liquidation – a process in which the court appoints an Official Receiver to liquidate all the company's assets to repay creditors. The Gazette's data service can help you identify up to date information relating to your construction partners, helping you anticipate potential problems and minimise risk exposure.

See also

Data service request (The Gazette)

Banks pledge to support to SMEs through Brexit in new Charter (The Gazette)

Find out more

Prepare your business or organisation for Brexit (Gov)

Get ready for Brexit: check what you need to do (Gov)

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