This Friday, the British had to leave the EU. Actually. The Brexit is postponed, but still hardly anyone is prepared for it really. To be more precise: It is more or less unprepared.
The auditing firm KPMG has published a study, the frightening revealed: in spite of nearly three years, it is clear that the UK will leave the European Union, although for the past two years, also the supposedly exact exit date, the 29. March, is known, is hardly a business enterprise it really set up.
Large companies, such as, for example, automotive companies, can afford a dozen employees, to think about possible exit scenarios, thoughts, and a company to develop strategy for one or the other case. Small and medium-sized companies can’t. For you, it is so much the worse that the British can agree on an exit mode.
Crucial: the continuing uncertainty
This uncertainty is the main reason that many business people have no idea how it will be after the day of withdrawal. Because, as Andreas Glunz of KPMG: “If all the scenarios are possible, and can prepare a company all at the same time.”
This is really not a good sign: The Brexit arrived in the German carnival.
For the study, were interviewed in December and January, 101 firms, and British firms with subsidiaries in Germany and German companies are also active in the UK. This “German-British Business Outlook 2019 (GBBO)” was carried out by KPMG in collaboration with the British chamber of Commerce in Germany (BCCG).
Cautious Optimism
40 percent of the companies surveyed expect according to the survey, that the Brexit will have a large or very large impact on your business. And almost half of all companies (47 percent) consider themselves to be largely unprepared when it comes to separation.
Although 84 percent of the respondents expect a decline in British economic performance, do not see a lot of companies for business are absolutely black: 47 percent expect their business growth, only 36 percent with a decrease.
As if the Chancellor had already suspected something by Angela Merkel and David Cameron before the Brexit Referendum.
The fear of customs
According to the “German British Business Outlook” expects only a minority, that the Brexit will have a large or very large negative consequences for your business, namely 40 percent. A further 38 percent of respondents anticipate a “moderate impact” on their business.
Asked what would be the biggest hurdles in mutual trade after a Brexit, called 47 percent, the expected bureaucratic hurdles, as the number of companies that expect a decline in sales.
Around one in four companies (26 percent) disruptions in the supply chains as the biggest threat to the EU exit of the British. For more than one in five companies (22 percent), increasing costs for customs duties is a cause for concern.
Britain remains important
In addition, the study shows that the United Kingdom will continue to be important – Brexit. Because in spite of some already developed phase-out plans 47 percent of companies intend to continue to invest on the island. Also, because the UK as a location for research and development continues to be a large Watch. Many companies cooperate with universities and appreciate the availability of well-trained professionals.
Now we have the salad: Theresa May, of course, but also Angela Merkel and all the other Europeans.
Closely intertwined
According to the German-British chamber of Commerce, the trade volume between Germany and the United Kingdom last year amounted to 119 billion euros. About 750,000 jobs in Germany depended on trade with great Britain.
German companies have invested, the chamber of Commerce, to date, more than 140 billion euros to the island. There, around 2500 branches of German companies with more than 400,000 employees. Conversely, British companies in Germany, 1500 branch offices and employ and would employ more than a quarter of a Million employees.
An urgent appeal
Andreas Glunz, division Director for international operations at KPMG, summarizes the study: “German companies are in the UK market is economically very active. For a large part of the German economy, it is therefore extremely important that a Hard Brexit is avoided. Even if the outcome is still uncertain, it is now the current business, appropriate measures to ensure as far as possible.”
The President of the British chamber of Commerce in Germany, Michael Schmidt adds: “It is unfortunate that the political development of British as well as German companies will have little choice – they must prepare for the worst. The British Chamber of Commerce calls on the political decision-makers urgently to the multi-layered Connections to the Kingdom.”