A majority of continental European firms are looking to cut their orders from UK suppliers because of Brexit. According to Chartered Institute of Procurement & Supply research, 63% of the EU companies surveyed are aiming to move some of their supply chain from the UK as a result of government moves to leave the single market.
The survey also finds that 40% of UK businesses are searching for domestic suppliers to replace EU companies.
“The lack of clarity coming from both sides [of the Brexit talks] is already shaping the British economy of the future - and it does not fill businesses with confidence,” says CIPS.
The Confederation of British Industry says two-thirds of British firms will have implemented Brexit contingency plans by March if a transitional deal has not been agreed by then.