“The facts are clear. Businesses which trade internationally are more resilient, more sustainable, employ more people and are more profitable.”
Those are the words of Marco Forgione, director general of the Institute of Export and International Trade. And a new report suggests we can add another adjective to that list – more productive.
A feasibility study published by the London School of Economics on behalf of the government has found that businesses which export are increasingly productive compared to non-exporting firms. And there are a number of reasons for this.
The report suggests that UK businesses can learn a lot from international partners, clients and customers – especially when exporting to advanced economies.
Exporting firms that are also prolific importers are also more able to weather economic storms that can affect supply chains by having a more diversified route to materials. Importing businesses also have increased scope to source different materials and technologies.
In fact, the productivity improvements from training internationally range from three to 22%.
You can read the stody in full on the government website here.
Capitalise on the opportunities of exporting
Is your business making the most of global opportunities?
Exporting for the first time or growing an existing operation into new markets can seem a daunting task, and a lack of internal knowledge and resources is a key reason why many firms avoid expanding further afield.
At Go Exporting, we help businesses to accurately identify profitable target markets and create a roadmap to achieving success in that territory, with as much or as little support as needed to make those exporting goals become a reality.
Learn more about our international trade consultancy services here.
Research commissioned by the British Beauty Council has found that Brexit has severely impacted the UK beauty sector, with SMEs especially affected.
The research, conducted by Oxford Economics, found that customs delays, increased costs associated with cross-border trade and a reduction in skilled EU workers entering the UK economy have shrunk the value of the UK beauty industry’s exports into the continent by £850m.
The research looked at sales trends before and after the UK’s departure from the European Union and found that, whilst sales increased in 2010 and 2016, exports have been in decline ever since the Brexit vote.
Interestingly, export values from UK beauty firms into the global marketplace have remained steady – its EU sales which have declined.
Head of trade policy at the BCC, William Bain, noted that: “The reality is if UK business is to thrive, then we must export more, it’s as simple as that. If we want to remain one of the world’s largest economies, then we need more firms selling goods and services internationally.
“The pandemic, supply chain disruption, Brexit, non-tariff trade barriers and global headwinds have all made this more difficult over the past few years.”
Read more: Growing crisis for UK’s exporting industry
This report, although damaging for the impact Brexit has had on trade with the EU, highlights the advantages of setting corporate sights further afield.
By targeting a global audience rather than just within the Eurozone, UK firms have an opportunity to find new customers – potentially in territories where competition is lower, or there is huge demand for their products and services.
To find out how export-ready your business is, take a quick and free quiz right here and get an instant assessment report on areas you need to work on to start taking advantage of the global opportunities that are out there.
Is your business ready to expand globally and capitalise on a world of opportunities that awaits?
You can assess your readiness for export with our free Export Readiness Quiz! Answer just 16 questions and we’ll provide you with an Export Readiness Score and breakdown of the areas where you need to pay attention to be in a position to successfully start or expand your journey into international markets.
We look at four key areas:
Company – How prepared is your business, it’s people, systems and procedures for export?
Market Knowledge – How well do you know your potential market and where the best opportunities lie?
Export Strategy – Is your strategy sufficiently defined and detailed to ensure export success?
Barriers to Entry – How aware are you of the barriers to entry such as customs rules and regulations, competition, product development requirements?
The final report will identify recommended improvements and further actions you should take to be a successful exporter. From this you can develop your Export Readiness Action Plan.
There is a world full of opportunities out there. Carefully planning and preparing will help you to profitably expand into international markets.
Don’t delay. Start today! Take the quiz here.
A straw poll as part of UK exporters has unearthed how unprepared most are for upcoming changes to the British border and how they will affect them.
Taken on an Institute of Export & International Trade webinar, just 6% of attendees said they were ‘completely clear’ about upcoming changes, whilst 16% said they were ‘clear’.
The question relates to the government’s Border Target Operating Model which sets out how the UK will approach checks on some goods entering from the EU – including several sanitary and phytosanitary (SPS) requirements.
The new border controls are designed to protect the UK against security and biosecurity threats and to ensure a smooth flow of goods, delivered as part of the 2025 Border Strategy.
Kevin Shakespeare of the IOE&IT noted: “There’s a lot going on in the trade and customs space in the UK. It can be a challenge to keep up, but there are also opportunities for businesses operating compliantly, that take the time to analyse and stay up-to-date on the changes.”
The 200-page document explains how the UK will adopt a digitised and risk-based approach to border checks with agencies conducting different levels of checks depending on the risk category of the product.
The same approach will then also be applied to non-EU goods entering GB.
IOE&IT customs specialist Anna Doherty further explained: “The impact of the model will vary depending on what you trade.
“For example, for exporters of SPS goods, the EU has been implementing controls right from the end of the transition period. To bring these checks into the UK will even out the playing field for these businesses.
“The model is also bringing in a range of simplifications. If you’re bringing in SPS goods from the rest of the world, then the modernisation in this regime will allow you to align your processes.”
Read more: Planned post-Brexit checks on EU food imports delayed again
UK importers and exporters have more to contend with too over the next 18 months, including the migration to CDS for exporters, a new NCTS5 system for transit, and the Windsor Framework.
Three key milestones that exporters need to know as part of the British Border Operating Model include:
- 31 January 2024 – The introduction of health certification on imports of medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin from the EU
- 30 April 2024 – The introduction of documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin from the EU. At this point, Imports of Sanitary and Phytosanitary goods from the rest of the world will begin to benefit from the new risk-based model
31 October 2024 – Safety and Security declarations for EU imports will come into force from 31 October 2024. Alongside this, we will introduce a reduced dataset for imports
If your business is yet to fully understand what upcoming changes mean for continued operations, Go Exporting can help you uncover the practical steps you need to make to remain compliant, continue seamless trade, and even spot an opportunity for growth.
Find out more about our customs and compliance reports, or get in touch directly here.
The Department for Business and Trade has announced a new trade agreement with Washington state.
The deal, or memorandum of understanding on trade, is the sixth such agreement that’s been made which in total offers UK businesses further opportunities to tap into markets worth £2.2tn.
BREAKING: tonight the UK will sign a memorandum of understanding on trade with Washington state 🇬🇧🇺🇸
— Department for Business and Trade (@biztradegovuk) September 25, 2023
This means we'll have signed MoUs with six US states, which had a combined GDP of £2.2tn in 2022 – offering new opportunities for UK businesses ✅
More: https://t.co/GRmmhupb3V pic.twitter.com/t8YsOZijXt
The memorandum with Washington focuses on aerospace with the State the home of Boeing. Industries minister, Nusrat Ghani, will travel to Seattle shortly to sign the pact and lead 35 UK firms at a joining Boeing and Department for Business and Trade showcase event.
The UK has already signed MoUs with Indiana, North Carolina, South Carolina, Oklahoma and Utah.
Ghani said of the agreement: “Our pact with the state of Washington is a win for the UK, opening a door for our businesses to trade more openly and unlock new opportunities in key sectors.
“Each US state is a massive global market in its own right, and many have economies larger than the GDP of whole countries. By notching up our sixth such deal we’ve surpassed the £2 trillion mark for combined GDP of states who’ve done a deal with the UK, with many more in our sights.”
Read more: Marr: Growing crisis for UK’s exporting industry
“This particular deal will be fantastic for our aerospace industry through investor intros, trade missions, and increasing access to procurement markets. I’m delighted to join Boeing and our handpicked group of innovative UK companies to discuss how Government and industry can work together to create jobs and grow the economy.”
The UK is striking deals with individual States in lieu of a comprehensive trade agreement with the United States – a prize that has long been sought since Brexit. However, US concerns over the Irish border since leaving the EU has put talks on hold.
In a recent piece for The New Statement whilst discussing Peter Forster’s book ‘What went wrong with Brexit and what we can do about it’, Andrew Marr has highlighted how UK SMEs are struggling to export to the EU and are increasingly deciding not to.
He says there is an ongoing contraction happening as firms decide it is too difficult to trade with the EU, and new ‘sectoral deals’ may be required by future governments to create closer alignment.
In short, back into the Single Market, but without saying so. Watch Marr’s points below:
Still opportunities for international trade
Whilst doing business with the EU market has undoubtedly become more complex since Brexit, there are still fantastic opportunities for new and established UK businesses to expand their horizons and drive increased revenue through international sales.
For many, it’s just about knowing how to start.
Go Exporting helps companies like this to understand their readiness to export with a three-stage audit and additional strategy, including export viability and corporate goals, legal, customs and market research – as well as market entry strategies.
Learn more about our export readiness audits here.
The government has delayed plans to introduce checks on imported food products once again.
The post-Brexit checks on fresh farm produce and plants from the EU into the UK were meant to begin in October, however, concerns over supply chain readiness, delays and potential inflationary cost increases have seen the roll-out pushed back once more.
Industry bodies have welcomed the move, with the Cold Chain Federation noting; “UK food retailers, hospitality businesses and consumers were in line for major disruption because many EU food-producing businesses supplying into the UK are not ready for the new requirements.”
But some businesses have said that delaying the checks will give an unfair advantage to continental rivals as UK produce arriving in the EU are subject to checks.
When will checks begin?
There’s no date as to when the changes will be introduced, with some industry insiders telling the BBC that they don’t expect any additional checks to come into play before the next general election, in January 2024, for which it is unlikely any new government would immediately mandate checks begin either.
This leaves a prolonged period of limbo for supply chains and the businesses which rely on them. When should they invest in the updated processes and procedures necessary, and if they do, could that be money down the drain?
At a time when inflation is still stubbornly embedded in the UK economy, it is unlikely any policy will be forced through onto businesses that will undoubtedly cause an increase in consumer prices.
But the period of limbo is harming UK producers, with the director of trade at the National Farmers Union, Nick von Westenholz, saying UK farmers were facing issues with exporting but continental competitors could export into the UK at will.
He said: “We appreciate the need to protect consumers from rising food prices, but it is vital that we introduce proportionate, light-touch checks on all our food imports that keep costs for importers to a minimum while properly managing biosecurity risks.”
Get support with the new post-Brexit trading environment
It’s been a tumultuous time for UK businesses adapting to the post-Brexit trading environment with new processes, delays and costs to mitigate.
The continued delay on UK checks on EU produce is a great example of businesses having to exist in a state of perpetual uneasiness – huge changes on the horizon with major consequences, but no clear idea as to when those changes will come into play… and when they should start preparing for them!
At Go Exporitng, we help import and export businesses of all sizes to adapt to the ever-changing tides of international trade, and we can do the same for you.
Learn more about our Brexit consultancy services and how we can help you overcome the obstacles and actually benefit from the changes here.
At Go Exporting, we know how critical exports can be to the long-term success of a business – it’s something we talk about all the time! And we love it when we see other businesses embodying that view.
And new research from Alibaba in partnership with the Institute of Export and International Trade has shown that eight in 10 UK firms agree and see exporting as critical to the future of their business.
The data, released in April this year, surveyed more than 3,000 UK businesses and found that 75% expected export sales to rise over the coming months, whilst a quarter expected significant increases in international trade activity.
What’s more, and especially important after the last three years of upheaval and continued economic headwinds, 81% of businesses surveyed said that exporting had made their business stronger.
“British businesses believe that export is integral to their success. It is positive to see exporters anticipating even further export sales growth in the next 12 months.”
Alibaba
If your business is new to exporting, or has just taken its first bold steps into international markets, Go Exporting can help you profitably achieve your goals.
Read more: Value of UK exports rises £1bn as trade deficit narrows
Our export readiness audits help businesses to establish what work they need to do in terms of training, processes, policies and management in order to smoothly transition into a successful exporting company.
Just want to read more about exporting for the first time? Then sign-up to our free Expert Exporter resource hub for a range of detailed guides on how to export for the very first time.
Are you looking to take your business to the next level and capitalise on the opportunities that the global marketplace presents?
If you’re thinking about exporting for the first time, then you need this free Lunch and Learn webinar with Go Exporting CEO Mike Wilson taking place on 18th July at 12pm.
In the webinar, Mike will take you through the steps of developing your own export strategy as well as answering your specific questions.
You will learn;
- What an exporting strategy is and how to create one for your business
- Discover how to decide where to export and what markets to sell to
- Overcome challenges that you may face as you start trading overseas
The latest economic data from the Office for National Statistics has shown the value of UK exports rising as the trade deficit narrows.
As part of the ONS’ economic update, showing GDP returning to growth of 0.2% in April and 0.1% in Q1 overall, data highlighted how the value of UK exports rose in April alone by £1bn or 3.4%. Imports decreased by 1.4% (£0.7bn) at the same time, leaving the trade deficit at £12.3bn.
The deficit for goods narrowed by £107bn to £52.5bn, whilst the service industry continued to thrive with a surplus increasing £1.9bn to £49.3bn.
Read more: 50% of revenue for UK exporters comes from overseas but one in four still aren’t trading abroad
The ONS suggested that strong service-sector performance was the key reason why, overall, the economy stayed in the black during Q1 and returned to growth, masking falls in production output and a 0.6% reduction in construction activity.
Brexit causing drag on exports
Despite some more optimistic data from the ONS, the exports industry is still struggling to adapt to the post-Brexit business environment.
A report released this week from the UN suggests that all other G7 countries, aside from Japan, have outpaced the UK exports market. In fact, goods and services exports in the EU grew by over 29% between 2012 and 2021. In the UK, that figure was just 6%.
If your business is looking to increase international sales but are struggling to adapt to the new trading environment, Go Exporting can help.
We specialise in helping companies just like yours to research, plan and execute an exports plan to drive sales growth in key territories.
Learn more about how we can start to improve your international sales here.