CONSULTING EXCELLENCE
AFTER BREXIT
Quarterly EU Survey findings
Survey 2 | February 2017
1 | EU 2
INTRODUCTION
This document summarises the findings of
the MCA’s second quarterly Brexit survey,
conducted in early 2017. We have presented
these alongside the results of the first survey
(Autumn 2016) to enable easy comparison.
There is a broadly similar pattern of responses
to both exercises, with one or two nuances and
variations. The key differences are as follows:
In reporting the effect on their revenues (figure
1), respondents overall point to continuing
negligible impact and again some negativity.
However, 8% of respondents now record a
positive impact on their revenues. This is
consistent with feedback from some member
firms about the benefits of the lower pound for
overseas sales. It also accords with the pickup in
one or two client markets (figure 3B) and with
the polarisation evident in figure 2.
Indeed, the story of the report appears to
be that (potentially short-term) polarisation.
In figure 2, fewer respondents now record
negligible impact on client growth expectations
and confidence. More now record both positive
and negative effects.
The contrast between 3A and 3B shows
where some of this polarisation comes from.
Respondents suggest a more positive outlook
for the manufacturing sector (as well as, to
a less marked extent, for infrastructure and
transport). Manufacturing’s position is doubtless
linked to sterling’s competitiveness. By contrast,
respondents suggest worsening prospects for
private health/life sciences, a more polarised
outlook for retail, while there is a notable
intensification of concerns about financial
services. High-profile reports of financial
services institutions contemplating relocation
will have contributed here.
Figure 4 shows that member firms’ perceptions
of the challenges of recruiting skilled labour
have likewise polarised. 15% cite Brexit as
having a positive impact, while the percentage
reporting a negative impact has nearly
quadrupled. Access to the Single Market
continues to matter to respondents (figure
5). Respondents suggest however that this is
notably less significant for their firm than for
their clients or (in line with recent MCA findings)
for non-EU recruits.
In figure 6, respondents again stress the
negativity, uncertainty and reduced confidence
in the UK that intelligence-gathering from
their overseas networks has revealed. From
Brexit negotiations (figure 7), respondents are
again seeking the Single Market access and
cooperation associated with a ‘soft Brexit’,
while some respondents also highlight the need
for better performance on trade agreements
beyond the EU.
Going forward, we will discontinue this
survey format. Instead, throughout the Article
50 negotiations, we intend to ask one-off
and topical questions. This will allow us to
complement our Brexit and New Economy work
with specific opinion and impact surveys. Our
New Economy 2020 and Beyond report has set
out an ambitious Brexit and Industrial Agenda
for the UK. We will test and refine its relevance
from bespoke surveys and other research.
(Please note throughout that where combined
numbers seem to add up to slightly more/
slightly less than 100%, this is a result of
rounding.)
2 | EU 2
SURVEY FINDINGS
Figure 1
What effect has the Brexit vote had on your firm's revenues?
89%
0% 0%
0%
Very positive
effect
85%
11% 8%
8%
Positive effect
Negligible effect
Oct-16
0% 0%
Negative effect
Very negative
effect
Feb-17
% of all responses
Figure 2
What effect has the Brexit vote had on client
growth expectations and confidence?
50%
54%
44%
31%
15%
6%
0% 0%
Very positive
effect
0% 0%
Positive effect
Negligible
effect
Oct-16
Negative effect Very negative
effect
Feb-17
% of all responses
3 | EU 2
Figure 3A
To what degree are these sectors of the economy being
affected by the Brexit vote? (October 2016)
Other sectors
Infrastructure
Transport
Private Health & Life Sciences
Retail & Leisure
Digital & Technology
Energy & Resources
Manufacturing
Government & Public Sector
Financial Services
0%
20%
40%
Very adverse effect
Adverse effect
Positive effect
Very positive effect
60%
80%
100%
Negligible effect
Figure 3B
To what degree are these sectors of the economy being
affected by the Brexit vote? (February 2017)
Other sectors
Infrastructure
Transport
Private Health & Life Sciences
Retail & Leisure
Digital & Technology
Energy & Resources
Manufacturing
Government & Public Sector
Financial Services
0%
20%
40%
Very adverse effect
Adverse effect
Positive effect
Very positive effect
60%
Negligible effect
80%
100%
4 | EU 2
Figure 4
What effect has the Brexit vote had on your ability
to recruit skilled labour?
94%
62%
23%
15%
0% 0%
6%
0%
Very positive
effect
0% 0%
Positive effect Negligible effect Negative effect Very negative
effect
Oct-16
Feb-17
Figure 5
For which of the following is the UK's access
to the Single Market significant?
78%
85%
56%
46%
38%
22%
Non-EU consulting
recruits
Your firm
Oct-16
Feb-17
Your clients
5 | EU 2
Figure 6
What attitudes has your firm observed from its
overseas networks or other sources?
Negativity from European countries
45%
Uncertainty
36%
Reduced confidence
9%
Positivity
9%
% of responses containing the coded theme.
Figure 7
In your view, what policy objectives should the
UK government and policymakers pursue to
secure the most positive post-Brexit outcome?
Full access to Single Market
36%
Continued close cooperation with
European nations
27%
Some access to Single Market
18%
US and Non-EU Trade agreements
9%
Soft Brexit
9%
% of responses containing the coded theme.
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