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How has Brexit influenced business so far?



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Two months before the UK has to leave the EU, how do businesses and the UK economy work?

According to Chancellor Philip Hammond, the economy is "extremely resistant to the Brexit process".

However, some companies say they have had unprecedented pressure.

What is going on?

It is not possible to determine absolute figures on how jobs, output and investment have been affected so far.

No one knows how these successes would have been if the results of the 2016 referendum were different.

Other factors have influenced the business environment – no less slow growth than in China and Europe

But there is some evidence that can give an idea of ​​how UK companies operate.

Have companies gone or moved jobs?

On it: no.

The number of employees is the highest. But there are many under the surface:

Bank contingency plans mean creating alternative bases, for example in Frankfurt, Paris or Dublin. Some banks coy on discovering too much.

But reports of banks like Morgan Stanley, Barclays and Bank of America are moving or creating hundreds, not thousands, of jobs on these sites suggesting that the total affected city is much less than 65,000 or has predicted some immediately after the referendum.

The Mayor of London has said that the total amount by March 29 may be less than 13,000.

We do not know whether jobs created in European cities like Paris and Frankfurt are at the expense of potential, or if there is agreement on future trade relations with the EU.

While some, including JLR and Ford, have mentioned Brexit as job cuts, it is a contributing factor rather than a determining factor.

Car companies are facing a seismic shock in the face of slowing global demand, overproduction and shifting from diesel fuel.

Before leaving, companies rarely question Brexit about job cuts. Jamie Oliver, a chef and restaurant owner, was defamatory in a few months' time after the referendum, and instead criticized his business model

As uncertainty persists, companies can keep plans – not just because they increase spending on unexpected contingency plans. How it will affect overall employment will not be known.

Has Brexit created jobs?

You may never have had a better time to become a sales manager or business consultant.

The overall employment rate since the referendum in June 2016 continued to rise to a record high.

Overall, last year, 95 million contracts were awarded to consultancy firms to advise the public sector on Brexit.

A further 20 000 civil servants have been working since the referendum, changing their previous trends.

They are concentrated in the departments most affected by Brexit.

And it's just the public sector.

Some companies continue to recruit for other reasons. For example, the telecoms giant Openreach has said it will accept another 16,000 engineers to support its full deployment of fiber broadband.

Do companies plan their plans?

Business investment has stopped and more than 10% lower than the official forecasts were before the referendum.

Removing uncertainty could persuade companies to start spending again – "transaction dividends".

However, investments have been relatively slow since the financial crisis.

Instead, companies chose to accept workers because they are relatively inexpensive. They can continue this strategy, which could help explain why job creation has remained so flexible.

And as companies implement contingency plans, investment funds can be diverted.

Processor Astra Zeneca has spent 40 million pounds of building in addition to testing equipment as it increases drug stock.

Some of them have made plans for various reasons.

Sony moves the electronics center to the Netherlands to prevent any customs problems.

James Dyson says he is moving his business base to Singapore to get closer to his fastest growing markets.

But the luxury brand Chanel mentioned the same reason to relocate its global business functions to London.

Are companies stocked?

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Majestic Wine said it would accumulate more than 1m additional wine bottles from France, Spain and Italy

Drugs are not the only ones that accumulate.

Associates British Foods, a company that takes Twinings tea and Ryvita, has purchased additional machines and packaging to prevent supply chain disruptions.

Cadburys Manufacturers Mondelez has accumulated ingredients and finished the product.

With Majestic Wine buying an extra 8 million pounds in drinks and Nestle investing more in coffee, there is less risk that we will have to give up some of the luxury of life.

Of course, these additional stocks may not be necessary and therefore wasted effort and money spent in organizing and storing them.

But at this point, many companies think they have no choice.

What is the impact of Brexit on sales?

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Fashion buyers are concerned about potential disruptions

The UK may leave the EU within two months, but some have already taken Brexit.

Orders are often placed months in advance.

Those who have dried up the British malt barley from the EU.

Barley, the UK's second largest crop export, could raise tariffs by around 50% of the current market price.

It's not just food. During the London Fashion Week in September, buyers voiced concerns about spring orders that could cause disruption.

Many of the consequences of Brexit's business, as far as business is concerned, are likely to be temporary, reflecting uncertainty or uncertainty.

The overall impact on the economy will become somewhat clearer when GDP figures are released in about a week.

The future will depend on Westminster's actions.

The impact that happens in any direction can be small, which we have seen so far.


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