North West firms to increase exports beyond EU after Brexit, finds study

Mid-market businesses in the North West plan to export further afield after Brexit, according to new data.

Research from law firm Mills & Reeve found that more than half (52%) of companies in the region plan to ramp up investment in exports beyond the EU.

To mitigate any negative fallout resulting from Britain’s departure from the bloc, the same number of businesses plan to change their pricing after Brexit, while 48% are either delaying or cancelling their acquisition plans.

However the study, titled Defying Gravity, found that the North West’s mid-market firms are bullish in the face of instability. The vast majority (84%) plan to increase turnover in the 2017/18 financial year by an average of 24%.

Respondents reported serious challenges since the Brexit vote in 2016, with close to half seeing a fall in demand and 38% facing increased issues with late payments. Exactly half believe retaining single market access will be ‘critical’ to their future success.

Chris Ross, partner at Mills & Reeve’s Manchester office, said of the findings: “Although Britain has not yet made its exit from the EU, mid-market businesses have been feeling the effects of Brexit since the referendum results were announced.

“Our research shows, however, that business leaders are finding ways to meet the challenge and actively adjusting their strategies to deal with the fallout.”

He added: “Despite current uncertainties surrounding Brexit, it’s encouraging to see leaders remaining buoyant and setting their sights high for the future. This confident but flexible approach will help mid-market businesses keep their position as the driving force of the British economy.”

Mills & Reeve international head Tom Pickthorn commented: “Although Brexit is presenting challenges, it may also be prompting an important expansion of horizons.

“This is good news for the mid-market, and good news for the UK as a whole.”