So, how have companies fared in the face of such major changes? And, more importantly, what does the year ahead hold for organisations?

Continued Covid disruption

Companies hoping for some welcome respite from the disruption of COVID-19 were left wanting. Almost as soon as 2021 began, the Government announced fresh lockdown restrictions. Businesses were forced to close their doors once more, and working practices became virtual.

Of course, this placed a great deal of strain on UK operations. For example, recent figures revealed that 30% of small and medium businesses (SMEs) were forced to make staff redundant, whilst 43% had to rely on the Government’s furlough scheme. Meanwhile, over two fifths of companies were forced to overhaul their business plans in accordance with social distancing guidelines.

However, evidence also suggests that businesses rose to the challenge, and were able to adapt accordingly. Indeed, with customers and clients unable to visit physical venues, businesses were able to shift their operations online, driving the growth of online trading and the UK’s eCommerce market. Indeed, those aforementioned figures also highlighted that as a consequence of these restrictions, companies began to offer online services, from webinars and meetings (23%) or delivery services (13%).

Of course, Covid is not quite behind us. The emergence of the new omicron variant creates fresh uncertainty for businesses, as the country awaits further clarity as to how its spread can be limited. Positively, however, the previous twelve months have demonstrated that most companies have the capacity to adjust their practices and cater to new practices.

Brexit uncertainty

It has been impossible to overlook the impact Brexit has had on UK businesses throughout the year. Given that the eleventh-hour Brexit deal gave organisations precious little time to make practical preparations, sudden changes to customs rules, administration processes and import/export charges caught organisations off guard. Indeed, research conducted by One World Express during the immediate aftermath of Brexit revealed that almost half (46%) of companies were planning to cut ties with EU-based trading partners.

However, as the dust settled, and companies began to grow accustomed to the post-Brexit trading climate, opportunities began to present themselves beyond the EU. Figures from the ONS found that, whilst trade with EU counties plummeted in the immediate aftermath of Brexit, it held steady with non-EU countries. Indeed, a study conducted by One World Express in November 2021 found that of 68% of UK exporters had experienced a rise in international demand for their goods or services.

Such figures instilled optimism amongst UK exporters. As such, seven in ten (71%) of exporters plan to expand their business into markets beyond the EU within recent months. Of course, success within international markets is not guaranteed, however the aforementioned figures suggest that the post-Brexit trading climate could be brighter than many first assumed.

Supply chain issues

In the wake of Brexit, many companies feared supply chain issues – and this appears to have now materialised. Indeed, One World Express’ research from January found that over a third (35%) of UK companies had experienced supply shortages because of Brexit.

However, when this issue appeared to have subsided as the UK and EU grew used to their new trading partnership, the problem appeared to emerge yet again. This time, the cause appeared to be due to a shortage of lorry drivers, so goods could not be transferred across the country.

There are numerous reasons for this. Indeed, staff shortages, vehicle delays combined with political conflicts and rising consumer demand all contributed to these delays. As such, there will be no quick fix solution to this issue – much to the frustration of many organisations. And whilst the issue may have calmed slightly, we are far from resolving it.

The test for businesses, therefore, will be to remain flexible and maintain a transparent line of communication with their clients and customers – and logistics technology (such as tracking software and shipment management tools) will be vital to this. For those unsure how to effectively adopt and manage this, I urge companies to seek assistance from logistics consultants. Doing so will help them to maintain a flexible, yet transparent strategy to ensure business operations can continue, whilst the Government and other stakeholders work to find a solution.

If 2021 has taught us anything, it is that UK businesses are incredibly resilient when faced with adversity. I do expect certain challenges to remain prevalent on the UK’s business agenda for some time now; namely the aforementioned issues aligning with Brexit, Covid and the supply chain crisis. However, provided that businesses remain flexible and seek assistance where required, I am quietly confident that organisations will experience some positive developments in 2022.