Brexit has British business owners on edge — and that is great news for Lovespace, a storage and warehousing company outside London.

Lovespace, which collects boxes from customers, stores them and then returns the goods when needed, says revenue from businesses doubled over the past year and inquiries quadrupled as enterprises large and small began stockpiling inventory because of concerns they will be cut off from suppliers if Britain leaves the European Union without an agreement on future trading relations.

“People are working out how to store stuff — how to get things to their own customers as the year progresses,” CEO Steve Folwell said as workers moved boxes around the company’s 20,000 square-foot (1,860 square-meter) warehouse in Dunstable, about 35 miles (55 kilometers) northwest of London. “There’s uncertainty because of Brexit and there’s a lack of trust in the political process at the moment.”

The risk of a no-deal Brexit is increasing amid widespread opposition to the divorce agreement Prime Minister Theresa May negotiated with the EU. While May says her deal is the only way to ensure that trade continues to flow smoothly after Britain leaves the bloc on March 29, U.K. lawmakers overwhelmingly rejected the agreement late Tuesday because opponents fear it will leave the country tied to the EU for years to come.

Without an agreement on future relations, 40 years of free trade between Britain and the EU would be replaced by tariffs, border inspections and other non-tariff barriers, with potentially devastating impacts on the British economy. The government’s own contingency plans raise the specter of lengthy border delays that could cause shortages of food and medicine, and the Bank of England predicts gross domestic product could shrink by as much as 8 percent this year.

“Businesses would face new costs and tariffs,” said Carolyn Fairbairn, director-general of the Confederation of British Industries, which represents 190,000 businesses. “Our ports would be disrupted, separating firms from the parts they need to supply their customers.”

Among those taking precautions is Richard Ellison, the founder of Wanderlust Wine, who imports wines from small producers off the beaten track. Worried that supplies to his customers could be interrupted, he’s stocked up in advance to brace for disruption at the border and the potential for an increase in paperwork.

“Everything will have to be checked at the border,” he said, explaining his precautions. “We bought quite a lot in advance — an extra pallet or two to tide us over.”

Companies ranging from supermarket giant Tesco, which imports food from continental suppliers, to carmakers like Ford, who rely on European parts to feed British production lines, have been lobbying politicians for clarity about future trading relations ever since U.K. voters backed leaving the EU in a June 2016 referendum. Now they are taking action to ensure they can continue to operate in the event no deal is reached.

A survey of U.K. manufacturers found that stockpiles of both finished goods and raw materials rose at near-record rates in December as businesses prepared for a possible disruption in supplies, according to the Chartered Institute of Procurement & Supply.

More than 60 percent of U.K. manufacturers are preparing to stockpile goods and 29 percent have already begun to do so, according to a November survey of 242 companies by EEF, the manufacturers’ organization. Some are even erecting new buildings to increase storage capacity.

“They are looking for places to store stuff,” said Francesco Arcangeli, the EEF’s economist. “They are looking for space. They are creating new space. That never happened before.”

Charlie Pool, CEO of Stowga, which loosely describes itself as the Airbnb of British warehousing, said customers looking for storage space searched the company’s site 10,000 times in December, up from an average of 3,000 a month. Businesses are sometimes even paying deposits to secure their bookings, which isn’t standard practice, Pool said, comparing it to paying for a hotel before arrival.

“The data we have is proving that stockpiling for Brexit is definitely a thing,” he said. “It’s happening now.”

That is driving up the cost of storage space. The average price to store a pallet of goods jumped to 2.10 pounds ($2.71) a week last month from 1.85 pounds in September. Pool said he wouldn’t be surprised if exceeded 3 pounds should a no-deal Brexit become a reality. That would still be relatively cheap compared with the cost of not getting products to the end consumers, he said.

The dangers of Brexit to business are evident even for storage companies like Lovespace. Despite the boom in revenue, a potential investor pulled back last year because of the uncertainty caused by Britain’s exit from the EU.

The investor said “it seems awfully complex to me,” Folwell said. “People are looking at the U.K. as a bit of a basket case at the moment.”

 
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International tensions and nationalist politics can further weigh on the global economy this year and hinder efforts to deal with big issues such as climate change, the organizers of next week’s Davos forum warned Wednesday.

In its annual Global Risks Report, the World Economic Forum said the world is evolving into “a period of divergence following a period of globalization.”  A “darkening” economic outlook, in part fostered by geopolitical tensions between the United States and China, “looks set to further reduce the potential for international cooperation in 2019,” it said.

“With global trade and economic growth at risk in 2019, there is a more urgent need than ever to renew the architecture of international cooperation,” said Borge Brende, President of the World Economic Forum, which hosts an annual gathering of business and political leaders in the Swiss ski resort of Davos.

“We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards,” he added.

In 2018, the global economy slowed more than most experts had predicted and stock markets posted their worst year in a decade. Much of that has been blamed on the standoff between the U.S. and China over trade that has led to both sides imposing tariffs on hundreds of billions worth of goods.

The report, which is based on the views of around 1,000 experts and decision-makers from around the world, found that 88 percent of respondents expect a “further erosion” of global trading rules and agreements that will hold back growth.

The U.S.-China relations will be one of the main talking points at next week’s gathering in Davos, with a number of high level representatives from each side due to attend, including U.S. Treasury Secretary Steven Mnuchin and China’s vice president, Wang Qishan. Britain’s upcoming exit from the European Union will be another key issue after British lawmakers overwhelmingly rejected the Brexit deal Prime Minister Theresa May had negotiated with the EU.

The 2016 vote to leave the EU had been driven in large part by a belief that Brexit would restore decision-making powers to Britain. U.S. President Donald Trump has used similar justifications to employ his “America First” policies on a range of international issues, such as climate change.

One area identified as being affected by the more fractured geopolitical environment is the need to modernize critical infrastructure projects around the world, such as roads, bridges and power networks, firstly and foremost to avoid accidents such as the collapse of a bridge in Genoa, Italy, last summer that killed 43 people.

John Drzik, President of Global Risk and Digital at Marsh, which helped with the preparation of the report, said the “more protectionist economic environment” is increasing costs and causing delays. The introduction of steel tariffs by the United States, he noted, raised the costs of an infrastructure project in Detroit by approximately 13 percent.

“Persistent underfunding of critical infrastructure worldwide is hampering economic progress, leaving businesses and communities more vulnerable both to cyberattacks and natural catastrophes, and failing to make the most of technological innovation,” he said.

 
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A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash, with accusations that it talks down to men and groups calling for a boycott. But Gillette says it doesn’t mind sparking a discussion. Since it debuted Monday, the Internet-only ad has garnered nearly 19 million views on YouTube, Facebook and Twitter — a level of buzz that any brand would covet.

The two-minute ad from Procter & Gamble’s razor brand shows men and boys engaging in bullying and sexual harassment and encourages men to “say the right thing” and “act the right way.” Taking on bullying, sexual harassment and toxic masculinity is a big task for a razor brand. Many critics took to social media saying it was insulting to men and laden with stereotypes.

The uproar comes as Gillette battles upstarts like Harrys Razors, Dollar Shave Club, and others for millennial dollars. Gillette controlled about 70 percent of the U.S. market a decade ago. Last year, its market share dropped to below 50 percent, according to Euromonitor.

Allen Adamson, co-founder of branding firm Metaforce, called the ad a “hail Mary” pass from the 117-year-old company. But he added that online buzz, whether positive or negative, rarely makes a long-term difference for a marketer since memory fades quickly.

“Getting noticed and getting buzz is no easy task, and they’ve managed to break through,” Adamson said. “Most advertisers advertise, and no one notices because there is so much noise in the marketplace, so just getting noticed Is a big win, especially for low-interest category like a razor.”

On the flip side, it probably won’t sell many razors either, he said.

Advertisers and social issues

Gillette’s ad echoes other attempts by major advertisers to take on social issues. Pepsi pulled an ad in 2017 showing Kendall Jenner giving a cop a Pepsi during a protest and apologized after an outcry that it trivialized “Black Lives Matter” and other protest movements. Nike polarized the nation with an ad featuring ex-NFL player Colin Kaepernick who started a wave of protests among NFL players of police brutality, racial inequality and other social issues.

Sales weren’t affected in either of those cases. When controversy does affect sales, it is usually over something more substantive than an ad. Lululemon saw sales tumble in 2013 after a string of PR disasters including manufacturing problems that caused their pricey yoga pants to become see through and fat-shaming comments from their founder. But even that was short lived.

Ronn Torossian, CEO of 5WPR, said that much like Nike’s Kaepernick ad, Gillette likely knew the ad would garner online debate.

“Nike knew what they were getting themselves into,” Torossian said. The ad with Kapernick was “making a lot of noise, and it can’t be a surprise to [Gillette] that this is making a lot of noise.”

Gillette response

P&G, one of the world’s largest advertisers, is known for its anthemic spots that appeal to emotions during the Olympics and other events, often aimed at women, such as the tear-jerking “Thank You Mom” Olympics branding campaign and Always “Like a Girl” 2014 Super Bowl ad.

Pankaj Bhalla, North America brand director on Gillette, says the controversy was not the intended goal of the ad, which is part of a larger campaign that takes a look at redefining Gillette’s longtime tagline “The Best a Man Can Get,” in different ways. Another online ad features one-handed NFL rookie Shaquem Griffin.

While he doesn’t want to lose sales or a boycott over the ad, “we would not discourage conversation or discussion because of that,” he said.

“Our ultimate aim is to groom the next generation of men, and if any of this helps even in a little way we’ll consider that a success,” he said.

Larry Chiagouris, marketing professor at Pace University, is skeptical.

“Treating people with respect, who can argue with that, but they’re kind of late to the party here, that’s the biggest problem,” he said. “It’s gratuitous and self-serving.”
…

A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash, with accusations that it talks down to men and groups calling for a boycott. But Gillette says it doesn’t mind sparking a discussion. Since it debuted Monday, the Internet-only ad has garnered nearly 19 million views on YouTube, Facebook and Twitter — a level of buzz that any brand would covet.

The two-minute ad from Procter & Gamble’s razor brand shows men and boys engaging in bullying and sexual harassment and encourages men to “say the right thing” and “act the right way.” Taking on bullying, sexual harassment and toxic masculinity is a big task for a razor brand. Many critics took to social media saying it was insulting to men and laden with stereotypes.

The uproar comes as Gillette battles upstarts like Harrys Razors, Dollar Shave Club, and others for millennial dollars. Gillette controlled about 70 percent of the U.S. market a decade ago. Last year, its market share dropped to below 50 percent, according to Euromonitor.

Allen Adamson, co-founder of branding firm Metaforce, called the ad a “hail Mary” pass from the 117-year-old company. But he added that online buzz, whether positive or negative, rarely makes a long-term difference for a marketer since memory fades quickly.

“Getting noticed and getting buzz is no easy task, and they’ve managed to break through,” Adamson said. “Most advertisers advertise, and no one notices because there is so much noise in the marketplace, so just getting noticed Is a big win, especially for low-interest category like a razor.”

On the flip side, it probably won’t sell many razors either, he said.

Advertisers and social issues

Gillette’s ad echoes other attempts by major advertisers to take on social issues. Pepsi pulled an ad in 2017 showing Kendall Jenner giving a cop a Pepsi during a protest and apologized after an outcry that it trivialized “Black Lives Matter” and other protest movements. Nike polarized the nation with an ad featuring ex-NFL player Colin Kaepernick who started a wave of protests among NFL players of police brutality, racial inequality and other social issues.

Sales weren’t affected in either of those cases. When controversy does affect sales, it is usually over something more substantive than an ad. Lululemon saw sales tumble in 2013 after a string of PR disasters including manufacturing problems that caused their pricey yoga pants to become see through and fat-shaming comments from their founder. But even that was short lived.

Ronn Torossian, CEO of 5WPR, said that much like Nike’s Kaepernick ad, Gillette likely knew the ad would garner online debate.

“Nike knew what they were getting themselves into,” Torossian said. The ad with Kapernick was “making a lot of noise, and it can’t be a surprise to [Gillette] that this is making a lot of noise.”

Gillette response

P&G, one of the world’s largest advertisers, is known for its anthemic spots that appeal to emotions during the Olympics and other events, often aimed at women, such as the tear-jerking “Thank You Mom” Olympics branding campaign and Always “Like a Girl” 2014 Super Bowl ad.

Pankaj Bhalla, North America brand director on Gillette, says the controversy was not the intended goal of the ad, which is part of a larger campaign that takes a look at redefining Gillette’s longtime tagline “The Best a Man Can Get,” in different ways. Another online ad features one-handed NFL rookie Shaquem Griffin.

While he doesn’t want to lose sales or a boycott over the ad, “we would not discourage conversation or discussion because of that,” he said.

“Our ultimate aim is to groom the next generation of men, and if any of this helps even in a little way we’ll consider that a success,” he said.

Larry Chiagouris, marketing professor at Pace University, is skeptical.

“Treating people with respect, who can argue with that, but they’re kind of late to the party here, that’s the biggest problem,” he said. “It’s gratuitous and self-serving.”
…

More than 3,200 government, business, academics and civil society leaders will address issues of globalization, climate change and other matters of world importance next week at the annual World Economic Forum in the plush Swiss Alpine village of Davos.

The list of participants reads like the Who’s Who of the most powerful, successful and inventive movers and shakers in the world. They will be rubbing shoulders during hundreds of formal sessions and workshops, as well as in private bilaterals on the sidelines of the meeting. They will discuss and seek solutions to some of humanity’s most vexing problems.

The theme of this year’s gathering is Globalization “4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution.” That refers to the emerging technology breakthroughs in such fields as artificial intelligence and robotics.

Founder and executive chairman of the World Economic Forum Klaus Schwab says this fourth wave of globalization needs to be human-centered. He says globalization in its present form is not sustainable. He says globalization must be made more inclusive.

“Globalization produced winners and losers, and so there were many more winners in the last 24, 25, 30 years. But now we have to look after the losers — after those who have been left behind…what we need is a moralization, or re-moralization, of globalization,” he said.

The program is very wide-ranging. For example, U.N. Secretary-General Antonio Guterres will discuss the state of the world. He will broach issues like climate change, fighting poverty and sustainable development. There will be special sessions by others about ways to make economic growth more inclusive, on rethinking world trade, as well as many scientific, artistic and cultural meetings.

Leaders from all regions of the world will attend. The Middle East will be represented by the presidents of Libya and Iraq. Israeli Prime Minister Benjamin Netanyahu will be there. So will Palestinian Prime Minister Mahmoud Abbas.

Six or seven presidents from Africa will be in attendance. And organizers of the forum say there is great interest in an appearance by the new Ethiopian prime minister, Abiy Ahmed, who has established peace with Eritrea during his first six months in office.

The forum president, Borge Brende, says a strong United States delegation will attend next week’s event, although President Donald Trump canceled his participation.

“We fully understand that, of course, President Trump will have to stay in D.C. as long as the government is facing this shutdown. We are very pleased, though, that the U.S. will be participating with key secretaries,” he said.

Brende confirms that among those coming will be Secretary of State Mike Pompeo, fresh from his travels in the Middle East, Secretary of the Treasury Steve Mnuchin, and Secretary of Commerce Wilbur Ross.
…

More than 3,200 government, business, academics and civil society leaders will address issues of globalization, climate change and other matters of world importance next week at the annual World Economic Forum in the plush Swiss Alpine village of Davos.

The list of participants reads like the Who’s Who of the most powerful, successful and inventive movers and shakers in the world. They will be rubbing shoulders during hundreds of formal sessions and workshops, as well as in private bilaterals on the sidelines of the meeting. They will discuss and seek solutions to some of humanity’s most vexing problems.

The theme of this year’s gathering is Globalization “4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution.” That refers to the emerging technology breakthroughs in such fields as artificial intelligence and robotics.

Founder and executive chairman of the World Economic Forum Klaus Schwab says this fourth wave of globalization needs to be human-centered. He says globalization in its present form is not sustainable. He says globalization must be made more inclusive.

“Globalization produced winners and losers, and so there were many more winners in the last 24, 25, 30 years. But now we have to look after the losers — after those who have been left behind…what we need is a moralization, or re-moralization, of globalization,” he said.

The program is very wide-ranging. For example, U.N. Secretary-General Antonio Guterres will discuss the state of the world. He will broach issues like climate change, fighting poverty and sustainable development. There will be special sessions by others about ways to make economic growth more inclusive, on rethinking world trade, as well as many scientific, artistic and cultural meetings.

Leaders from all regions of the world will attend. The Middle East will be represented by the presidents of Libya and Iraq. Israeli Prime Minister Benjamin Netanyahu will be there. So will Palestinian Prime Minister Mahmoud Abbas.

Six or seven presidents from Africa will be in attendance. And organizers of the forum say there is great interest in an appearance by the new Ethiopian prime minister, Abiy Ahmed, who has established peace with Eritrea during his first six months in office.

The forum president, Borge Brende, says a strong United States delegation will attend next week’s event, although President Donald Trump canceled his participation.

“We fully understand that, of course, President Trump will have to stay in D.C. as long as the government is facing this shutdown. We are very pleased, though, that the U.S. will be participating with key secretaries,” he said.

Brende confirms that among those coming will be Secretary of State Mike Pompeo, fresh from his travels in the Middle East, Secretary of the Treasury Steve Mnuchin, and Secretary of Commerce Wilbur Ross.
…