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Companies are fleeing the UK as Brexit looms ' and their actions paint a grim picture for the nation

Published by Business Insider on Wed, 23 Jan 2019


A rising number of companies are moving their headquarters out of the UK and into other geographies worldwide.Firms are bracing for a "no-deal" scenario, which could lead to even more corporations changing addresses.Companies around the world are changing their tunes and addressesuprooting supply chains and moving their headquarters to get ahead of unsettled global chaos.Driving the news:Dyson said Tuesday it would move itsheadquarters from the U.K. to Singapore not because of Brexit, according to its founder, leading Brexit advocate Sir James Dyson, but to "future-proof" the business.Yes, but:The company is part of a growing pattern.Japan-based Panasonicexecutive Laurent Abadie said the company would shift its EU headquarters out of theU.K. to Amsterdam, citing "Brexit-related concerns like access to free flow of goods and people."Steve Maddensaid last year on an earnings call with analysts that it was "aggressively shifting production out of China" and said the company will source 16% of its tariffed goods from countries other than China.Foxconn,Apple's biggest iPhone supplier, is looking to pushproduction out of Chinaand into Indiaa move that could "lower prices by allowing Apple to avoid a tariff that adds 20% to devices imported from China."Unileversoughtto move its headquarters to Rotterdam from London last year, but met strong resistance from shareholders.Watch this space:More than half of the 48 financial services companies in EY's Brexit tracker said they are considering movingsome of their operations and or staff out of the U.K., thanks to Brexit uncertainty.Why it matters:Those are big calls," Carlos Gutierrez, a former Commerce secretary and former CEO of Kellogg who now chairs Albright Stonebridge Group, tells Axios. "Moving a supply chain is a big investment, and putting together a supply chain is a big investment to start with."I doubt these companies will go back,even if tensions ease, Gutierrez said.Be smart:Behind the scenes firms are continuing to plan for a "'no-deal' scenario," Omar Ali, U.K. Financial Services Leader at EY, wrote in the company's Brexit tracker report. "The closer we get to March 29 without a deal, the more assets will be transferred and headcount hired locally or relocated."Join the conversation about this storyNOW WATCH: What will happen when Earth's north and south poles flip
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