44% of firms have difficulty sourcing materials abroad
An Increased regulatory burden due to Brexit has affected 54% of businesses, new Central Statistics Office (CSO) data shows.
The statistics examine Global Value Chain (GVC) participation for 2020, given that, in a globalised economy, enterprises increasingly organise the production process into smaller activities located across different countries to bring goods and services to market.
COVID-19 impacted GVC arrangements both at home and abroad.
Due to the pandemic, more than two in five enterprises (44%) had difficulty acquiring raw materials or intermediate products from suppliers domestically, compared with 40% of enterprises having difficulty with suppliers from abroad.
The data show that two in five (40%) enterprises had difficulty with sourcing raw materials or intermediate products from suppliers abroad due to COVID-19.
More enterprises (47%) purchased goods/materials from suppliers abroad than supplied to enterprises overseas (24%).
Britain was the most popular location for both the global purchase and supply of goods or materials and services.
Statistician Colin Hanley said: “The results of this publication show the level of participation in GVC arrangements in 2020.
Supplied overseas
“Almost half (47%) of enterprises (with 50 or more persons engaged) purchased goods/materials abroad for use in their own production, while 24% supplied goods/materials abroad. More than a third (35%) purchased services abroad, while 22% supplied services to another firm overseas.”
Enterprises indicated that raw materials (21%), machinery and other technical equipment (20%) used in a firm’s production were the most-common purchases from abroad, while final goods designed by the company for resale (13%) were the most supplied.
Information, technology and communication (ITC) services were the most-purchased services from abroad. Most enterprises that purchased or supplied goods/materials and services abroad did so with Britain.