Analysis

Relocation strategy

Brexit considerations for businesses in Belgium

Brexit, hard or soft, will pose a location strategy challenge to business. Should companies stay in the UK, should they leave, and what if the UK represents a significant future growth market? As the saying goes – Location Is Everything. But what should Belgian executives worry about?

Relocation strategy is a Brexit issue which could have an impact on businesses operating in Belgium.

Business challenges

Brexit can have a significant impact on critical location factors:
  • Macro-level risks - Currency fluctuations, government stability, regulative compliance (GDPR), product/service certification, …
  • Business regulations and practices - Border delays, drop in exports, delayed licensing of medicines, re-testing of exported products by EU or UK regulators, …
  • Taxation and incentives - Corporate tax arbitrage, reduced margins due to increased custom tariffs, potential UK liberty to divert from EU state Aid incentive rules, …
  • Human resources - Different rule-sets and challenges for attracting talent internationally, more diverting labour codes, …
  • Infrastructures and accessibility - Changing market and supplier access, port/transit delays, ports, the rush on strategically located manufacturing and storage space, …
  • Location appeal - The extent to which destinations benefit the attraction and retention of (top) talent, …
  • Business costs - Taxation, payroll, logistics, land and facilities, …

Relocation focus areas

Preparing in advance and gaining a clearer view of comparative business location options are crucial for making informed factual decisions based on current data.

As Brexit may lead to a significant level of corporate location activity, it is important for companies to have a clear understanding of how their existing and/or envisaged operations could be affected.

Brexit contingeny planning cannot do without location planning. That plan will vary from one company to the other. Deloitte’s Location Strategy team has long-developed an effective location/site methodology, based on rigorous analysis of each company’s critical success factors. It addresses various options for market presence, or market entry, and objectively narrows down the feasible scenarios to identify the solution which optimally balances corporate targets, existing investments as well as future operating costs and conditions.

Who can you contact?

Did you find this useful?