What has somewhat become lost in the news about the now reclusive Leave politicians and Nigel Farage being booed by fellow EU diplomats in Brussels is the preparations and concerns that small and medium size business owners must now face. Luckily there will be time to prepare because the full “divorce” is estimated to take 2 years, but that doesn’t mean that preparations should wait until the last minute.

Only 1 in 5 Logistics Organizations Prepared

Being the Network Development Manager for X2 Logistics Networks, I often notice trends and behaviors that appear to be common across various areas of the industry, and for small to medium sized businesses I have seen that long-term planning is often delayed or put aside in concern of day-to-day issues.

A recent survey has revealed that an estimated 1 in 5 logistics organizations had prepared a Brexit plan prior to the referendum.

Personally, I’m curious as to how many of our network members have prepared plans. How many members are in the majority without a plan and are now scrambling and how many members are in the minority?

It’s my belief that the UK members of X2 Logistics Networks are ahead of the curve and had prepared initial plans and are now looking to flesh out basic plans into something more as the Brexit matures from a public referendum into a full departure from the European Union over the next couple years.

There will also be a need for the United Kingdom to renegotiate its trade treaties with individual European states. This will likely be a lengthy process, but if lucky, countries will choose to only slightly alter agreements that have already been in place. However, it would be best to prepare for significant changes in these individual agreements because each country will have their unique self-interests to consider.

Years To Plan

Yes, it’s true that the full Brexit will take some time, but the shocks and effects are already being felt. Economic stability should be a major concern for freight forwarders and other logistics companies. Can business expansion be reliably funded? How much will the costs of exporting increase, thus diminishing some potential customer pools?

As of this writing the value of the sterling has been at a 3 decade low against the dollar. The events unfolding domestically in the UK within the past 100 hours after the referendum are being described as a political crisis. Although domestic, experts are expecting at least 6 months of political paralysis, which does not bode well for the markets or the value of the currency. A recession characterizes the “baseline scenario” for the British economy in the immediate future.

After reading what I’ve just wrote, it tells me that anyone who has thought to have years to plan has been sadly mistaken. The effects have been immediate and for those who have failed to have even the most basic of plans, the recent events and those to come could be disastrous.

I Don’t Have A Plan, Is It Too Late?

It certainly isn’t too late to develop a Brexit plan. Certainly it is preferable to have had a plan prior to the referendum, but it’s still possible to plan and implement a strategy for the coming months and years.

About the Author: Shane Hebzynski is the Network Development Manager at X2. After studying at Temple University’s Tokyo campus, he transferred to Webster University where he earned a BA in International Relations and a Master’s of Business Administration. Through communication, Shane assists members in utilizing the assets and resources afforded to them with X2 membership. [A more detailed version of this post is available on LinkedIn Pulse – CLICK HERE]https://www.linkedin.com/pulse/brexit-planned-prepared-shane-hebzynski