How Concorde Technology Group is preparing for differing Brexit scenarios
With the current climate of uncertainty surrounding the UK’s intended withdrawal from the European Union (EU), we wanted to assure all of our customers that we are working closely with our supply chain to prepare for differing scenarios. As the landscape continues to shift on a daily basis, it is difficult to be definitive at this stage. However, we can currently state the following:
Supply of IT goods and services
One of the main concerns with Brexit is that British ports and HM Customs are not adequately prepared for a no-deal scenario. This could potentially mean significant delays to the supply of IT goods in the UK, as non-perishables may be de-prioritised in the event of border delays or backlog.
To overcome possible supply delays, a number of major UK IT distributors have and are increasing their stock-holding within the UK. Some also have also put in place the ability to process imports and exports from/to the EU and non-EU countries in-house. Whilst it appears that no IT and consumer electronics goods will attract WTO tariffs, barriers currently being created between the USA and China may have a direct effect on some goods and there movement between countries. We are monitoring this situation as it develops.
As you may well know, we don’t manufacture goods ourselves. Nor do we have significant trade outside the UK, except isolated instances of fulfilment overseas for UK customers. However, we can assure you that where required, we will be able to continue providing goods and services abroad via our global supply chain and we intend to maintain prices which are wholly within our control.
In addition, we hold substantial amounts of stock for warranties on our service contracts as well as project roll-out and call-off stock. We are also suitably prepared to hold increased stock in our own warehouse facilities, should you wish to guarantee continued supply for the period January-June 2019 or beyond.
All EU regulations will cease to have a direct effect here once the UK withdraws from the EU. However, the UK has taken steps to transpose many EU regulations into English Law (e.g. personal data) in the event of withdrawal. Therefore, we do not anticipate a significant effect on the UK’s ability to comply with matters such as safety or transfer of personal data following departure from the EU.
If there is a no-deal Brexit, the effects on currency exchange rates may be dramatic and could result in significant fluctuations to the prices of IT goods. There could also be immediate price rises from vendors. In either event, we will work to ensure such rises are well communicated with as much notice as possible.
Brexit checklist and resources
With the political and economic climate so unstable, it is vital for all businesses to plan for all possible scenarios. The Chamber of Commerce provides a good, free starting point, which you can find here: https://www.britishchambers.org.uk/page/brexit/business-brexit-checklist.
For more information on how Brexit may affect your working relationship with Concorde, please contact your Account Manager or our Chief Executive Neil Roberts on 03331 300 600