Businesses expect average losses of £117,489 as a result of supply chain issues, and a further £107,851 due to Brexit with London workers most concerned – expecting their companies to lose over £330,000
New data today reveals UK businesses anticipate huge financial losses in 2021 due to a combination of supply chain issues and Brexit. An average loss of £225,000 is forecast per company, with £117,489 due to supply chain disruptions and a further £107,851 due to Brexit.
The study found that London businesses were the most concerned – expecting their companies to lose over £330,000 due to supply chain disruption and Brexit. Yorkshire organisations were the most concerned about supply chain issues specifically, expecting £159,000 of losses.
Businesses blame Brexit for stock delays
The study was commissioned by online freelance platform Fiverr, whose freelancers – particularly eCommerce experts – have been supporting businesses during this period. 63% of UK businesses believe Brexit has created problems for their organisation so far, with 37% stating it has contributed to delayed stock in particular, with certain cities becoming hotspots for delays. In Glasgow, nearly half of businesses complain they have experienced delayed stock due to Brexit, with Bristol and Leeds workers also experiencing the same issue.
In terms of sectors, retail has been hit the hardest, with 51% experiencing stock delays. Half of manufacturers and 49% of building and architecture companies have also been impacted. Over 2 in 5 respondents aged 25-34 have experienced delayed stock, due to issues connected to Brexit, whereas just under 3 in 10 respondents aged 55+ said the same.
A further 28% blame Brexit for delayed deliveries to customers and over a quarter claim it’s the reason for the recent lack of fuel.
Customers lost due to supply chain issues
60% of UK businesses say that supply chain issues have negatively impacted their businesses in 2021. A third of respondents have been forced to increase prices for customers and this figure rises to 46% in Leeds and 41% in Edinburgh. Again, younger workers also seem to be more impacted, 2 in 5 respondents aged 16-24 have been forced to increase prices for consumers, whereas just under a quarter of respondents aged 55+ said the same.
Over 1 in 5 also claim that supply chain issues have lost them customers this year; a number that rises to 27% in Liverpool and Glasgow and 26% in Cardiff.
A considerable 36 percent of workers in Sales, Marketing and Media roles believe that they have lost customers due to supply chain disruption, amounting to considerable losses. Similarly, nearly a third of retail workers feel the same.
Staff shortages across the board
Over a third of UK businesses are currently struggling to recruit staff. In cities like Birmingham, this is a bigger issue, with 42% of businesses facing hiring challenges. Similarly, 40% of businesses in Sheffield and 39% in Manchester are experiencing the same.
Peggy De Lange, VP on International Expansion at Fiverr comments: “This study highlights rising employee concern about company financial performance as a result of a tumultuous year. Difficulties hiring staff is adding another layer of complexity. Business leaders must reassure employees as we head into the new year, and plan ahead to combat any challenges that may arise in 2022. From a hiring perspective, leveraging digital freelancers is a safe way to fill any gaps in a workforce when it’s needed.”