There’s nothing quite like a seismic event to focus the mind. So significant has Brexit been that Irish businesses have been forced into action.
Although many exporters, especially those in the agri-business sector, will certainly suffer in the event of a crash out, no-deal Brexit, a substantial volume of Irish businesses have worked to significantly decrease their reliance on the UK market, one with which we’ve been intrinsically linked for decades.
But, whatever the outcome on post October 31st, that is about to change. Prospective exporters will likely look further abroad, to what are viewed as more progressive European states, rather than the UK, which will likely remain mired in political uncertainty for years to come.
The country’s attitude toward immigration will have an impact on how Irish businesses view the prospect of attracting quality employees. And even though a series of cities have done much to persuade potential investors that they will remain open for business whatever the outcome, there will remain an element of doubt for years.
When the country voted to leave the EU, the business had to effectively throw that plan out and start afresh
To some degree, Brexit has opened the eyes of Irish business to the prospects beyond the cliffs of Dover.
Irish Business
Take East Coast Bakehouse, for example. When it was set up in 2016, it had created a business plan which included its strategy to export approximately 80 per cent of the biscuits it made in its Co Meath facility to the UK. When the country voted to leave the EU, the business had to effectively throw that plan out and start afresh. And they did, building their Irish business in addition to their export business to the European mainland.
Such is their capacity – they can make 77,000 packets of biscuits in an eight-hour shift – companies which outsource production from countries like France and Germany may well decide to shift their production from the UK to Ireland.
A similar shift took place at Rathwood, a home and garden centre in Co Carlow. Brexit forced them to reinvest in its own market and grow its market share in the Republic, something its founders says has proven to be “more successful than anticipated”.
Then there's those who have had to entirely restructure their supply chain. Equestrian goods manufacturer Berney Saddlery in Co Wexford is now looking to nonUK suppliers while the Co Meath sisters behind FenuHealth have moved to establish a UK presence, in addition to their Irish one, to be able to get the goods they need to service that market in the event of a no-deal.
Perhaps entering the UK market was too easy and those companies that previously operated first here, then there before pushing on elsewhere, should have changed the formula long ago. And now they’ve been forced to by an event outside their control.
Challenges remain
Lest there be any doubt, there will remain challenges, in some cases insurmountable ones, for companies with a heavy reliance on the UK market. Rapidly fluctuating exchange rates will prove difficult to manage and a distrust of UK politicians will force Irish companies to question whether doing business in the UK is worth the hassle.
Beef exporters in particular will have to look toward new markets to ensure that their entire business model doesn’t suffer because of a vote they had no part in.
Our reliance on the UK from an economic standpoint wasn't healthy and whether they stay or go, the UK's vote has had the effect of making that clear
Indeed, when a country like the UK is lowered to having to stockpile beans and toilet paper to ensure its health service can still care for its patients, it’s hard to believe that Brexit will end well, but such are the times we live in and businesses will just have to adapt.
There’s no doubt that Brexit has caused havoc for Irish business. But, it has had the effect of driving our State agencies to promote the advantage of transacting elsewhere, be that in Europe or further abroad, and, when all is said and done, that’s no bad thing.
Our reliance on the UK from an economic standpoint wasn’t healthy and whether they stay or go, the UK’s vote has had the effect of making that clear.
While it’s unquestionably a shame that the UK has succumbed to such deep-rooted damage in the process, now is a time for Irish businesses to look elsewhere. As challenging as this has been, and no doubt some companies will go to the wall, in every crisis there is opportunity. Irish companies just need to be the first ones to find it.
