The impacts of Brexit will reach into almost every aspect of businesses that export into the United Kingdom. The Brexit Barometer, developed in conjunction with PwC, will provide the industry with a consistent structure with which to assess the likely impact of Brexit and provide a baseline of information to each company.
The assessment is divided into a number of sections. Firstly, the introductory stage of the assessment requires some basic information about the respondent company, such as name, sector and channels where goods are sold into. The second part of this stage requires some more technical aspects of the company, such as revenues ranges from UK sales, the number of full-time employees, and so on.
Important information required for the Brexit Barometer
Given the various types of information required, completing the assessment may require input from more than one person within your company. When completing this assessment you will need the following information:
- Export figures
- Export markets
- Foreign currency arrangements
- Customs and VAT requirements
- Supply chain structure
- Human Resources
Where possible your sector manger will attend and assist you undertake the assessment.We strongly advise that you use this assessment tool as an opportunity to meet with your core team as part of a Brexit Planning exercise. We recommend a minimum of 2.5 hrs is allowed for this.
Structure of Barometer
The barometer is divided into a number of sections. Firstly, the introductory stage requires some basic information about the respondent company, such as sector and channels where goods are sold into. The second part of this requires info , such as % from UK sales, the number of full-time employees, and so on.
The barometer is then structured around 6 key topics
- Route to Market – This section covers the company’s dependency on the UK, which can include the number of customers currently in the UK or the ease of switching by UK retailers. It also covers the company’s relationship with its business partners in the UK, as well as the company’s current level of diversification into other markets, which can all help ease the potential negative impacts from Brexit.
- Trade – This section seeks to determine the existence of alternative markets for the products that you currently sell to the UK and how feasible it would be to sell into those markets, as well as how UK origin products that you source may be treated post-Brexit.
- Currency – In this section, there will be an assessment of the extent of the company's exposure to currency risk and how volatility in FX rates has the potential to materially impact on net revenues and operating profits.
- Supply Chain – This section covers a number of supply chain issues that can occur post-Brexit. This can include changes in lead times, as well as dealing with reduced volumes of goods, as a result of lower demand in the UK market. The section will also analyse sensitivity of the commercial model towards increased costs in the supply chain, as well as other supply partners’ readiness and resiliency towards Brexit.
- Customs & Tax – This section aims to assess whether import and export regulations & requirements are, or will be, directly relevant to your company, along with the level of preparation that the company has undertaken to become compliant with any relevant Customs regulations. This section also aims to assess whether the company is prepared for the VAT implications of Brexit arising from the purchase from and/or sale to the UK of goods.
- Tax –People – This section assesses the company’s workforce, with an emphasis on tasks performed by employees in the UK or other foreign markets, as well as the employees’ activities in Ireland.
Each of these sections has a number of sub-sections, each of which requires details about export figures, export markets, among others.
The sections do not have to be completed sequentially. Once all categories have been completed, all of the outputs from each section will be aggregated into a final report on the company’s level of exposure and resiliency to Brexit. A supporting document with also be provide suggestions actions to take now and into the future.
Should you have any issues accessing or completing the assessment, please contact your relevant sector manager.
Why we need the data? And how will it be used?
Firstly the Brexit Barometer will help you assess the potential impact and readiness of your business for Brexit. Secondly by assessing the readiness and resiliency of the Irish food and drink industry as a whole we can better understand the current industry situation, and assist in long term strategic planning.
The data that you provide will be treated with the utmost care and is being stored in a facility managed by PwC on behalf of Bord Bia for the duration of the project (it will be returned to Bord Bia at the end of the project).While both of those parties will be able to see the individual data of your company, all analysis provided for any other forum will be aggregated either at a national or sectoral level and won’t identify individual companies.
What You Will Get from the Assessment
The assessment has a number of benefits:
- You will receive a high level assessment of your exposure to and readiness for Brexit by topic
- This customised assessment will be supported by information and suggested actions on each of the topics that you should be aware of and act upon as relevant.
- This assessment will allow us to identify the sectors that have a high risk of being negatively impacted by Brexit, as well identifying particular areas of concern.