UK subsidiaries that are investing because of Brexit

We are all aware of the pressures and strain on SMEs in the UK because of the uncertainties linked to Brexit. With the lack of meaningful advice for SMEs, the need to increase stock holding for imported components, to help reduce the predicted levels of business disruption, is adding to the pressure.

However, one small silver lining to the Brexit cloud is the increasing trickle of investments being made by large foreign owned companies in their UK operations, companies that want to future proof their UK sales.

SME Infrastructure

The willingness for these overseas based operations to invest in any newly registered UK company, and provide them with the necessary SME infrastructure is increasing and almost becoming common place. It also may be in part linked to the warmth of the welcome provided.

Food & beverage, pharma and medical are just some of the industries that the UK market provides with consistent revenue. Historically many of these large companies have been happy to import into the UK from within the EU, without the need for UK based subsidiaries to hold stock.

Yes of course in the long term the ideal investment (or securing of previous investment) should be within the UK manufacturing sector, but this is not always easy to attract, especially until the Brexit influenced UK economy returns to consistent growth. The much smaller SME levels of investment in UK based distribution only subsidiaries, will still be welcomed.

Investing in best in class solutions

We have aligned ourselves with best in class SME IT solutions like SAP Business One ERP, Sage software and Microsoft Azure cloud platform. We are ideally placed to quickly implement the future proofed IT systems required to help SMEs with this aforementioned UK subsidiary investment strategy.

Another thing driving this type of investment comes from the knowledge that existing subsidiaries within these larger organisations are often already relying on SAP Business One ERP software. This software is used to help produce local financial accounts (SAP Business One has in the region of 50 different global localisations available out of the box), control inventory, efficiently process sales and purchase orders and utilise integrated forecast drive MRP functionality, to manage stock levels.



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