Which Sectors Are Most Likely To Be Affected By Brexit?

January 30, 2019 / News & General

With Britain’s exit from the EU fast approaching, businesses across the nation are facing increasing political and financial uncertainty.

Last year, many companies fell victim to rising business rates, increased rental costs and a fall in sales – resulting in difficult trading conditions and cash flow problems.

And with so much economic uncertainty as we enter a new year, further businesses could face turbulence in the coming months.

Here are some of the sectors that are most likely to be affected…

Retail and casual dining

For retailers, restaurants, cafes and bars, any turbulence faced in recent years is likely to continue in the coming months, potentially exasperated by consumers’ tightened purse strings.

Blair Nimmo, head of Restructuring at KPMG, said: “Consumer attitudes towards spending are materially changing, whether it be the trend towards shopping online, continued uncertainty around Brexit or workers still feeling squeezed on their wages. For any company operating on the high street, increased costs as a result of the living wage, business rates and rising raw material costs have turned these pressures into something of a perfect storm.”

Domestic energy suppliers

During the last few months of 2018, there was a rise in the number of domestic energy suppliers falling into administration.

The energy supply sector has seen tremendous growth in recent years, with many smaller companies entering the market in a bid to rival the ‘big 6’. But although this is good news for customers looking for a greater choice of providers and the option to save money on their energy bills, many companies are struggling to make a profit as a result of moves to encourage customers to switch.


The logistics and parcel sector may also be heading for a period of disruption. Thanks to the rise of the gig economy and growing pressure from consumers to deliver products faster than ever without a change in prices, companies in this sector are having to find innovative ways to deliver while still making a profit.

Blair Nimmo said: “Rising fuel and tyre costs continue to squeeze margins, and the industry faces people challenges too – the industry employs a significant volume of non-UK employees who may be impacted by Brexit, plus its workforce is ageing – the average age of drivers is 54 years.

“All of these factors are leading up to a period of sector consolidation and the reorganisation of various operating models.”

Free insolvency advice to help your company

Whatever sector your business is in, if you’re concerned about the effects of Brexit or are already experiencing problems (as many are), we can help you.

The sooner you act the better it is going to be for you.

For free confidential advice, call 0161 907 4044 or contact info@clarkebell.com today.