Brexit to have little impact on many Bucks businesses

Around 9 in 10 businesses plan no change to their activity levels post-EU referendum and those who do plan change, indicate an increase.

This is one of the findings of the 2016 Buckinghamshire Business Survey, commissioned by Buckinghamshire Business First to gather the views of local businesses on a wide range of issues, including Brexit, exporting, broadband and the structure of local government.

Business activity increasing in next 12 months

Businesses were first asked whether they planned to increase or decrease their current levels of activity in specified areas, such as exporting and investment in marketing and training. They were then asked how these plans had been affected by the result of the EU referendum in June 2016.

Far more businesses indicated they would be increasing their activity levels in almost every area compared to those who would be decreasing activity, while the impact of the EU referendum was largely non-existent. Where businesses did suggest that the result would have an impact on them, this commonly led to a planned increase in activity in areas like training, marketing, R&D activity, exporting and their online presence.

Survey results at a glance

When asked if they planned to increase or decrease current levels of activity in the next 12 months in the following areas, businesses answered:

  • Online presence: Increase 47%, decrease 3%
  • Investment in marketing/advertising: Increase 38%, decrease 6%
  • Investment in equipment/machinery: Increase 32%, decrease 7%
  • Staffing levels: Increase 29%, decrease 3%
  • Research and development: Increase 28%, decrease 3%
  • Number of premises/branch: Increase 10%, decrease 2%
  • Investment in training: Increase 37%, decrease 3%
  • Exporting: Increase 26%, decrease 6%
  • Importing: Increase 17%, decrease 7%
  • Euro currency bank accounts: Increase 8%, decrease 5%

The ‘Brexit' factor

When asked how the EU referendum result had affected the level of activity planned, the vast majority stated their plans were not affected. However, where they had adjusted their levels of activity because of the result, businesses answered:

  • Client base: Increase 7%, decrease 7%
  • Online presence: Increase 7%, decrease 2%
  • Investment in marketing/advertising: Increase 9%, decrease 3%
  • Investment in equipment/machinery: Increase 6%, decrease 3%
  • Staffing levels: Increase 5%, decrease 2%
  • Research and development: Increase 7%, decrease 2%
  • Number of premises/branch: Increase 2%, decrease 1%
  • Investment in training: Increase 8%, decrease 1%
  • Exporting: Increase 6%, decrease 4%
  • Importing: Increase 6%, decrease 5%
  • Euro currency bank accounts: Increase 2%, decrease 2%

Construction firms and manufacturers most positive

Businesses in the construction sector were most likely to report plans for an increase in their client base (15%), online presence (13%), marketing and advertising expenditure (21%), purchase of equipment/machinery (18%) and staffing levels (12%) since the referendum.

Manufacturers were most likely to report plans to increase their R&D activity (15%) and exporting (15%) post referendum.

Larger businesses more likely to increase activity

Businesses with ten or more employees were more likely than smaller firms to increase their activity across every category, except for R&D activity. In this area, businesses with one employee were just as likely as those with ten employees to increase R&D activity (29%), and more likely than those with 2-9 employees (27%).

Watch out for more Business Survey highlights

The 2016 Buckinghamshire Business Survey has produced a lot of illuminating information. Over the coming weeks and months we will report more of it for you, including business’ views on exporting, broadband, and the structure of local government.

Visit the reports and analysis section of the Buckinghamshire Business First website, where you can read the full 2016 Buckinghamshire Business Survey report.