Almost half of EU businesses working with British suppliers are already looking to sever ties and find European replacements, new research shows.

A survey of more than 2,000 supply chain managers by the Chartered Institute of Procurement & Supply (CIPS) found 46 per cent of European managers working with UK suppliers are now seeking local suppliers because of Brexit. Just under a third (32 per cent) of UK businesses who work with suppliers on the Continent are actively looking for alternative suppliers based in the UK.

Almost two thirds of UK businesses said they have seen their supply chains become more expensive as a result of the weaker pound, with 29 per cent re-negotiating some contracts as a result.

We’ll tell you what’s true. You can form your own view. From 15p €0.18 $0.18 $0.27 a day, more exclusives, analysis and extras.

Gerry Walsh, CIPS chief executive, said: “Diplomats either side of the table have barely decided on their negotiating principles and already supply chain managers are deep into their preparations for Brexit.

“Both European and British businesses will be ready to reroute their supply chains in 2019 if trade negotiations fail and are not wasting time to see what happens.

“Fluctuations in the exchange rate or the introductions of new tariffs can dramatically change where British companies do business. The separation of the UK from Europe is already well underway even before formal negotiations have begun.”

In the long-term, European supply chain managers appear more confident about their ability to respond to any new tariffs by moving their supply chains within the single market.

Almost half (46 per cent) of European supply chain managers expect a greater proportion of their supply chain to be removed from the UK, with 28 per cent intending to bring back all or part of their supply chains to Europe.

While European and British supply chain managers agree that the number one priority for negotiations should be keeping tariffs and quotas to a minimum, the UK supply chain managers responsible for brokering international deals for their organisations believe negotiators face serious hurdles.

Shape Created with Sketch. Business news: in pictures Show all 8 left Created with Sketch. right Created with Sketch. Shape Created with Sketch. Business news: in pictures 1/8 Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis 2/8 Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA 3/8 RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA 4/8 Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty 5/8 Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty 6/8 Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty 7/8 French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. 8/8 Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year. 1/8 Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis 2/8 Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA 3/8 RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA 4/8 Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty 5/8 Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty 6/8 Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty 7/8 French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. 8/8 Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.

When asked about the major challenges facing UK negotiators in the trade talks, 39 per cent said the UK has a weak negotiating position and 36 per cent believe there is a lack of time, but 33 per cent believe there is a dearth of supply chain expertise and knowledge in the UK to draw upon.

This pessimism is also apparent when it comes to managing the financial costs of Brexit. More than a third of UK supply chain managers plan to respond by pushing supplier costs lower, while 11 per cent admit that part of their operations may no longer be viable. Worldwide, 67 per cent of respondents felt that the uncertainty surrounding international trade agreements was making long-term plans difficult to confirm.

Mr Walsh added: “We have already seen high profile disputes between British retailers and their suppliers as a result of currency fluctuations. We now know that this pattern is being replicated across the UK and is likely to escalate."

We’ll tell you what’s true. You can form your own view.

At The Independent, no one tells us what to write. That’s why, in an era of political lies and Brexit bias, more readers are turning to an independent source. Subscribe from just 15p a day for extra exclusives, events and ebooks – all with no ads.

Subscribe now