Brexit - firms struggle to adapt, but it’s not all doom and gloom
Leaving the EU has created red tape, rising costs, uncertainty about the future, delays to shipments and lost revenue - but there has been some benefits too, as sales to nations outside the EU are increasing. Business editor KIMBERLEY BARBER reports.
RISING costs for exports, new paperwork and delays to shipments are just some of the problems Brexit has caused for businesses across the Portsmouth area.
However, Brexit has not been without its benefits, as many firms are also reporting strong sales and stronger relationships with countries outside the EU.
Now, as firms are beginning to get to grips with the new rules three months after they were introduced, calls are being made for the system to be streamlined and for processes to be made smoother, in a bid to ease transactions with Europe and boost the economy.
Dr David Pool runs FishScience Ltd in Shirrell Heath.
His business markets and sells a range of foods for aquarium and pond fish which use insect meal as a key ingredient.
His business started in 2013 and now supplies products to more than 300 stores throughout the UK as well as to distributors in EU countries, New Zealand, South Africa and Dubai.
His products are manufactured and packaged in the Czech Republic.
He said that while sales have boomed, thanks to an increase in pet ownership throughout lockdown, he has struggled with exporting to Europe.
He said: ‘Our sales have increased by over a third in the last 12 months. I’ve had no issues with importing my products into the UK and have maintained good stocks.
‘Unfortunately exporting FishScience products to EU countries has proved to be very problematic.
The changed paperwork requirements have resulted in delays in delivery times as customs clearance personnel get used to the new systems.
‘I have one shipment to a customer in Spain which was sent January 13 and has still not been delivered. Shipments to Ireland are also difficult and uneconomical, so I expect to lose a number of my Irish customers.’
Dr Pool said that health certifications, set to come in later this year, will further complicate issues.
He said:
‘This will make smaller shipments uneconomical and more complicated. There are, of course, ways around this such as appointing distributors in other European countries, but this isn’t the individual, customer focused business plan that has been successful in the UK and was planned for future export plans.
‘Fortunately the FishScience business is focused on the UK at present so the export issues will not be too problematic but there are many businesses who have a significant part of their sales in Europe that are affected much more severely.’
The situation is similar for many other products across all sectors.
Keith Skinner, who runs Varese Secure in
Segensworth, said that his company had experienced delays and incurred extra costs shipping parts to Europe – and he called for the system to become similar to how it is currently dealing with America.
His firm, which makes degaussers, which destroy hard drives, has just seen its best ever month in its 10 year history, however he feels the situation with Europe is holding it back.
He said: ‘It has meant that we have had to learn a lot of new things. You need to get your paperwork properly done before anything is dispatched.
‘It has almost killed off the small transactions of spare parts to Europe. Something that would have cost €25 is now costing €90. My customers in Europe are finding that it is not easy for them. We are both losing out.
‘We need to make sure that everyone understands the new rules and receives as much help as possible, not just us but our customers in Europe.
‘We need to be working together to make it a smooth process. Importing from America is easy, the parts arrive overnight, that part of our business is exceptionally easy. That’s how I would like to see us moving forward with our relationship with Europe.’
He said that some of the delays have seen parts held back for three weeks.
He added: ‘Originally I was against Brexit, but now I can see the benefits and I think it was a good move but we need to stop and work through the issues a bit better, even if it was as simple as having pre-printed paperwork available.’
Delays have also hit Hampshire-based BSA Tuberunner, which makes parts for heat exchangers, boilers, condensers and other refinery equipment.
Director Simon Wilson said: ‘The biggest issue we have seen is around delays in getting goods cleared through customs.
‘This is most noticeable when exporting and I feel that the Europeans were not as well prepared as us.
‘It is also interesting to see that the way the rules are being applied and information being requested does vary slightly from country to country.
‘We had expected a more uniform approach.
‘As the deal was signed at the 11th hour it did not really give enough time for all to understand and make full preparations.’