Offaly businesses failing to prepare for Brexit
Offaly businesses are being urged to immediately commence preparing for the effects of Brexit after the AIB Brexit Sentiment Index for Q1 2018 revealed the alarming statistic that just 4% of Irish SME’s have put a formal Brexit plan in place.
Richard Dunne, AIB’s Brexit Advisor for Kildare, Laois and Offaly warned that for businesses in the Tourism, Manufacturing and Food and Drink sectors it is imperative that a Brexit risk assessment be undertaken to offset a likely increase in the businesses cost base post Brexit.
“For Food Manufacturers with a 50% turnover exposure to the UK and sterling, they should be proactively adapting product ranges for new export markets. That will help diversify revenue streams and minimise exposure to sterling fluctuations and potential border tariffs,” Mr Dunne commented.
“The Horse racing and Bloodstock industry is particularly strong across Kildare, Laois and Offaly which helps drive Tourism in the region. The sector relies on Britain to buy up to 80% of Thoroughbreds exported from Ireland."
"The tripartite agreement between Ireland, the UK and France for the free movement of horses could also come under threat in a hard Brexit scenario. These are fundamental threats to the industry as tariffs and reduction in exports to the UK will threaten the survival of businesses and have the knock on-effect of reducing visitors to the locale," Dunne added.
The AIB Brexit Sentiment Index for Q1 2018 reveals that the majority of SMEs both north and south of the border have yet to feel any impact from the proposed withdrawal of Britain from the European Union, but do have concerns. The majority of SMEs both north and south of the border have also yet to put a formal Brexit plan in place, with only 4% of SMEs in the Republic of Ireland and 2% in Northern Ireland having done so.
The research finds that the sectors which are most negative about Brexit in the Republic of Ireland are Tourism, Manufacturing and Food and Drink.
AIB’s Brexit Sentiment Index conducted by Ipsos MRBI, is a quarterly survey of more than 700 SMEs in the Republic of Ireland and Northern Ireland that assesses the attitudes of SME business leaders on Brexit and its impact on their businesses.
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