EU firms replacing UK supply chain links

Almost half of EU businesses working with British suppliers are already seeking replacement suppliers in other EU countries, according to a survey by by the Chartered Institute of Procurement and Supply. Almost two thirds of UK businesses said they have seen their supply chains become more expensive as a result of the weaker pound, with 29 per cent re-negotiating some contracts as a result. More than a third of UK supply chain managers plan to respond by pushing supplier costs lower, while 11 per cent admit that part of their operations may no longer be viable. Worldwide, 67 per cent of respondents felt that the uncertainty surrounding international trade agreements was making long-term plans difficult to confirm.