Third of mid-sized firms will restructure to cope with post-Brexit trading

New figures from BDO show almost  32% of mid-sized businesses think they will need to substantially alter their business model to remain viable amid the new post-Brexit arrangements between London and Brussels.

The survey of 500 firms showed 36% are prioritising adapting their company to align with the new trading arrangements. This compares with one in four that are focusing on their rebound from the pandemic.

Almost half (49%) of businesses report that increased costs as a result of the new trading arrangements will need to be passed down to customers.

Against a backdrop of ongoing turbulent trade, supply chain disruptions and increasing pressures on sustainable business models, more than a third (38%) of businesses now plan to onshore suppliers in the next three to six months. As well as bringing control back to UK makers, the move could provide a boost to the UK economy and domestic markets.

Despite some choosing to invest more in domestic supply-chains, less than 4% of firms reported that they will no longer trade at all with the EU.

BDO describes mid-sized businesses as the engine of the UK economy. These businesses account for more than £1 trillion in revenues and one in four UK jobs, and have continued to outperform larger and smaller companies in terms of growth in recent years.

Stuart Lise, Partner at BDO, said “The resilience of mid-sized businesses has been tested beyond all expectation in the last few years, but they have continued to demonstrate their ability to quickly adapt to new and often challenging scenarios.”

“While the onshoring trend sets to rise, businesses are still keen to continue to trade internationally and seek out new international markets. As they navigate this transition and adapt to new ways of working it’s important these ambitious businesses are given adequate government support to ensure future growth is not hindered by rising costs and red tape.”