By Melanie Hassell, head of events at UK-based agency Smyle Three years after the UK’s official departure from the European Union, navigating the complexities and challenges that come with new regulations, border controls, and extra costs are still causing a headache for some UK event industry agencies, suppliers, and clients. At Smyle, we have been adapting by expanding our presence to European offices and adopting a solutions-focused approach, but we have still felt a squeeze when it comes down to the bottom line. When competing with European agencies for events within the EU, our costs are higher and margins smaller. So, what exactly are the challenges, and what can the industry do to mitigate them?
Challenges
The biggest challenge is tax. Additional tariffs on imports and exports have directly hit total costs compared with pre-Brexit times. We deliver a lot of work across Europe so, previously, being paid by international clients and working with global suppliers was just a case of closely managing exchange rates (although that came with its own challenges!). Now there is a lot to consider and contend with in terms of imports and exports, each of which differs from country to country. It’s a bit of a minefield, but we learn and get more clarity with every project. We create custom builds for many of our activations in our workshop in Hertford, England. It’s cost-efficient, we know that the quality is going to be to our standards, and it speeds up the process as everything is in-house. However, when we travel to the EU, say to Spain or Germany, to build a stand with our own constructions and props, new travel and working visa restrictions have added a layer of complication. It isn’t as easy as hopping on a ferry to crack on with a build anymore. While the route is the same, more rigorous border checks and, often complicated, paperwork have thrown a massive spanner in the mix. Local guidance can be vague and inconsistent, particularly around working visas. We’ve all seen stories of people being turned away at the border because they signed the wrong form. Thankfully at Smyle, we haven’t had that experience, but it can be a concern for potential clients.
Expansion in Europe
One way we’re mitigating these new challenges is through expansion into Europe. Smyle is opening bases in other countries so that we can continue to meet the needs of our clients. Having an office in Amsterdam allows us to process payments, pay suppliers and meet different regulatory requirements more efficiently. A few years ago, the UK, and especially London, was seen as the adland and creative capital of the world, and clients really wanted to work with a London agency. While that hasn’t dropped off, agencies have to work harder now to show they can and want to work in Europe. There have also been instances where we have worked with our clients’ local agencies in European markets. Smyle leads the creative, innovation and UK delivery, as well as building a playbook that instructs and allows local agencies to deliver to Smyle standards and meet expectations. This helps our clients produce the same creativity, level of delivery and consistency of brand message but drive value using local suppliers. We consult directly with the local agencies to ensure they are aligned with the expectations our clients put on us – taking the burden of logistics away from the client. Brexit is here to stay, but it’s important we talk about the challenges as an industry so that we’re able to try and address them collectively. Thankfully the topic isn’t as divisive as it was a few years ago, and people are adapting, but that doesn’t mean there aren’t areas for improvement. We must find ways to navigate to ensure UK agencies can thrive in Europe and globally.
