Make UK recommend the Department for International Trade:
-
Further develop on-the-ground support with in-market
contacts, agents and other advisors with the local knowledge to
help companies succeed in new markets
-
Establish a database of overseas companies in target
countries to enable effective market research for
manufacturers
-
Boost skills base through the introduction of a
financial package for exporters to improve technical capability
and provide grants and practical support to assist exporters
attending trade shows and similar events overseas
-
Develop a national guidance website for business
covering all destinations UK manufacturers send their workers
in order to service products for customers
British manufacturing companies are already major players in the
global export market, with 95% of UK companies sending goods
overseas, ensuring we have a manufacturing sector much larger and
more powerful than it would be based solely on domestic
consumption, reveals new research, ‘International Trade
Report 2020’ published today by Make UK, the manufacturers
organisation.
But in order to drive economic growth in communities across the
whole of the UK and the 2.7m manufacturing jobs the sector
provides nationally, manufacturing needs Government to offer
additional export support so companies can compete in new markets
as the UK begins its new journey outside the EU. Some 97% of
companies which export in the UK do so directly to the EU, and
while manufacturing currently contributes 53% of UK exports, the
uncertainty over future trading arrangements with the EU makes
taking advantage of new export opportunities more important than
ever.
The Government has rightly focussed on growing exports in recent
years and its target to grow exports as a proportion of UK GDP to
35% is welcome. To further power UK exports, the Department of
International Trade should develop a network of on-the-ground
experts in local markets which will be critical to launch smaller
companies successfully into new markets. Understanding how local
markets work is essential to taking advantage of fresh
opportunities and growing business overseas, but the dynamics and
culture of each market are distinct and differ greatly. Sometimes
the answer to ‘why is no one else exporting to this market?’ is
that ‘it is too difficult’ and this is where local knowledge is
key.
Stephen Phipson CEO of Make UK, the manufacturers’
organisation said:
“British manufacturers have always exported their high quality
goods around the world and the new trade deals which are
currently being negotiated should open up a myriad of
opportunities. But making sure smaller businesses, which are
often the most innovative, are able to take advantage of these
new opportunities will be vital if we are to fully maximise the
potential trade benefits. This means bespoke support which is
simple to understand and easy to obtain, helping them to access
true experts on the ground with the right local knowledge.
“In tandem with this, Government must look to build a structure
of reliable advice with a database of overseas companies in each
country to help manufacturers make those first steps effectively,
allowing them to carry out effective market research to make
considered decisions. This should sit alongside a financial
package to boost skills base for exporters to improve technical
capability.”
While the survey went on to show that 40% of manufacturers had
taken advantage of current Government export services, a number
of respondents said the information was too complicated to
understand and access. There is an opportunity for Government to
simplify and increase awareness of the export services on offer
and a good start point would be to establish a database of
overseas companies in each country as a basis for effective
market research. There should also be an overhaul of the ‘ease of
doing business’ guides already available for key export markets
to help businesses take that first tentative step.
A bespoke financial package to help manufacturers improve their
knowledge of new markets would be a further boost – looking to
improve capability around export controls, the bribery act,
individual customs and VAT procedures, regulation, insurance,
compliance issues, payment terms and logistics. Businesses will
also need quick access to information on local rules for each
country they send their workers into so they understand the
technical requirements of each region. This would work best in
the form of a single national website making regulatory access
for each country clear and accessible.
And with companies still adapting to new circumstances and
rebuilding their businesses as we begin to come out of the worst
of the COVID crisis, Government could build on the package of
grants available to help exporters attend trade shows and similar
events overseas, with over a third (34%) of respondents to the
survey telling us that such support would have a positive and
immediate impact.
https://www.makeuk.org/insights/reports/international-trade-report-2020
