Agency view
The post-Brexit challenges facing a UK-based events agency
BY MELANIE HASSELL , HEAD OF EVENTS AT UK-BASED AGENCY SMYLE
T hree 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 .
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