The British Chamber of Commerce (BCC) is urging more businesses to ‘look beyond our shores’, following the results of its international trade survey published today (15 July).
Made up of responses from more than 4,700 UK businesses, the results show that, while the majority of firms have ambitions to grow domestically (90%), less than half (43%) are looking to expand their business overseas.
BCC director general, John Longworth, is now calling for increased support for both existing and potential exporters.
More than half of current exporters (55%) said they recorded a positive impact on their bottom line within just 12 months of expanding into new markets. Of the respondents that are currently exporting, 75% have been trading internationally for more than five years.
“It’s understandable that less than half of the businesses we surveyed have ambitions to grow internationally, but it proves that we need to do more as a nation to take the fear out of exporting,” said Mr Longworth.
“I speak to businesses that have full order books here in the UK and don’t see why they would need to take their goods and services overseas. To transform businesses’ domestic mindset, we need to create an environment that makes it worthwhile for them to export.”
The survey revealed that Europe and Asia remain the most popular export regions for UK businesses.
Abertillery-based SteriTouch is an exporter of additives, which are used in manufacturing facilities overseas. Exports now account for 60% of the business’ turnover.
Joanna Wilson, of SteriTouch, said: “When SteriTouch additives are being used in a manufacturing facility overseas, it raises our profile and allows us to reach markets which would have been difficult without a presence in that country. A significant amount of business is now generated from the Far East, Australia, South America and Europe.
“Another huge benefit of exporting for us is purely financial. All overseas transactions are made on a pro-forma basis, offering protection against non-payment and giving us cash in the bank to grow the business. It is also hugely satisfying to be bringing money into Wales from what are considered to be the manufacturing hotspots of the world.”
The survey also identified that Japan, Kuwait, Kazakhstan and Hungary are perceived as providing the greatest opportunities for growth in the next five years.
Leading provider of cash management solutions to the retail, banking, grocery and quick-service restaurant sectors worldwide, Tellermate Ltd, exports 90% of its business.
The business’s headquarters and manufacturing plant is based in Newport and it has sales offices in North America, Germany, France and Spain. Tellermate systems process £1 billion daily in more than 20 currencies and across 30 countries.
Devan Bimal Shah, of Tellermate, said: “Our main export areas are the USA, mainland Europe and Japan. Expanding into these areas has generated increased cash flow which has been reinvested into the business, enabling us to continue being at the forefront of technological innovation.
“This growth and innovation has formed the cornerstone for future developments, making it possible for more of the world to count on a Welsh company.”
According to the BCC international trade survey, the majority of respondents (79%) said the most influential factor when considering exporting is the ease of finding customers, agents and distributors. And increased funding and access to overseas agents and distributors were identified as key factors that would encourage non-exporting businesses to export for the first time.
John Longworth added: “If we in Britain are serious about rebalancing our economy, we must invest even more in supporting and promoting international trade. The UK should be matching the level of resourcing dedicated to export support provided by our major international competitors. And government intervention must be more focused in areas that can really make a difference, such as providing greater access to finance to growing firms – particularly when a quarter of non-exporters say that increased funding would encourage them to export.”
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