Is your company's Brexit planning hindering growth?
Across a huge range of sectors, British business’s appetite for investment has seriously decreased. Instead of looking to the future, businesses are focussing on contingency plans and stockpiling resources. Ultimately this kind of behaviour is unsustainable, an opinion that is echoed by the British Chamber of Commerce (BCC).
Whilst this low investment, contingency approach may be the best available strategy for some, many other businesses are likely missing a valuable opportunity to gain competitive advantage. You should make it a priority to establish which of these 2 categories you fall into.
Based on the latest economic forecasts from the major city and non-city forecasters including organisations like the British Chamber of Commerce, Cambridge Economics, the Bank of England and Citigroup, although business investment is expected to decrease by 1%–1.3% for 2019, the economy is expected to grow (GDP: increase of 1.2%–1.5%; Household consumption: increase of 1.4%–1.7%; exports: increase of 1.4%–1.7%) and interest rates are expected to increase in 2020. I.e. on average British businesses will be making more revenue over the remainder of 2019 but are expected to invest less and investments will become more expensive come 2020.
Why is now a good time to invest?
Although the market is difficult and there are still many unknowns with Brexit, as the news from yesterday shows with a potential new election, investing now in operational improvements will ensure that you are competitive whatever outcome. Changes that you do before your competition gives you a head start and potentially frees up your time for reacting to Brexit once the geopolitical situation is clearer and you can be sure that the decisions that you make are relevant.
The results from the referendum were published 3 years ago now, and we are still none-the-wiser to what impact Brexit could have to our businesses. The truth is that even after the 31st of October, we might still not know what the impact will be as we enter some form of transition over the coming years, whatever the end state goal may be.
LEC’s 4 areas of competency (operational transformation, business systems, learning and development and mergers and acquisitions) could accompany you through your change process and give you that head start.
LEC has extensive experience across a number of UK industries and see on a daily basis the challenges and opportunities clients face in relation to Brexit and economic uncertainty. In 2017-2019, Sean Pickering, LEC Business Analyst, released guidance notes on Brexit
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