Local businesses eye EU expansion in Brexit response

The positive attitude was revealed at a recent Institute of Directors (IoD) Northern Ireland workshop where two fifths of participants said they have considered setting up or expanding operations in the European Union to overcome concerns around the EU ‘divorce’.

The leading business organisation, which has produced a 10-point guide to prepare companies for the UK’s departure from the EU, has released the findings from the event.

Hosted at Riddel Hall, Belfast, in partnership with Catalyst Inc and Bank of Ireland, the seminar was held to discuss and share the practical ways in which Northern Ireland companies are preparing for the impact of Brexit.

A survey of delegates found respondents rated trade and export their greatest concern, with 80% having considered dual location to ease trading with the EU.

It also found that 40% were not at all prepared for Brexit, while 20% had started scenario planning and 33% were having Brexit-related discussions with customers and suppliers.

However, none had carried out an audit of their workforce.

IoD NI director Linda Brown said the workshop formed a key part of informing the wider Brexit debate:

“There is a great desire among businesses across the economy to find some certainty around Brexit as they aim to show leadership to their staff, and in their sectors broadly.

“It is important that directors continue to engage in conversations as the Brexit debate evolves.

“As an organisation, we seek to provide a strong voice so the views of the business community are heard by those involved in the negotiation process.”

The event heard from four speakers - IoD EU expert Allie Renison; Aidan Gough, InterTradeIreland; Professor Lee McGowan, Queen’s University, Belfast, and Bank of Ireland UK economist and market analyst Alan Bridle.

Among key concerns voiced by delegates were fears of a shortage of skills due to the potential departure of EU-born workers following Brexit.

On trade, the possible introduction of a tariff was cited as a worry, especially for smaller firms which would find any additional costs difficult to absorb.

The impact of managing currency risk was also considered a concern.

“Planning ahead is vital for all businesses and even more so as we look ahead to the UK’s exit from the European Union,” said Shaun Moore, head of global markets at Bank of Ireland, Belfast.

“The IoD’s Brexit seminar provided a welcome platform to discuss the various challenges ahead including potential fluctuations in foreign exchange.

“More companies are now putting in place policies for dealing with currency volatility, hedging where possible and reviewing the practice on a regular basis.”

Dr Joanne Stuart, director of development at Catalyst Inc added:

“We were delighted to partner with the IoD to support this important event as the business community considers the impact of Brexit.

“Although the majority of the businesses within Catalyst Inc supported remaining part of the EU, they are innovative companies who are providing world leading products and services across the globe and remain positive about the future.

“We continue to help firms to accelerate their growth plans as they prepare to operate in the post-Brexit era.”

The IoD has produced 10 ‘top tips’ for preparing for Brexit. They include reviewing business plans, considering cashflow and alternative finance and keeping up to date with recruitment and employment law.