Ninety seven per cent of exporters questioned in a survey said they were optimistic about growing their businesses through international trade.
Spearheaded by the Institute of Export & International Trade – the UK’s only professional body offering recognised, formal qualifications in International Trade – the research involved responses from over 200 Institute members and the wider export community.
Respondents were positive about future trade prospects despite fears of a growing US protectionist agenda, national elections across Europe potentially upsetting the status quo – and Britain’s possibly fractious divorce from the EU.
While 93 per cent of those taking part were upbeat about exports to the EU, participants were moderately optimistic about opportunities with the US and cautious about trading with India, China and Russia.
Exporters surveyed remain concerned about Brexit – 87 per cent forecast it would result in a loss of trade and 40 per cent expressed uncertainty over negotiations and their outcome.
Nevertheless, over half of the respondents regarded extending their overseas markets as the single biggest opportunity for their company this year – with a 3:1 ratio looking to grow markets overseas and almost one third seeking to achieve this expansion in 2017.
This confidence extended to investment – with nearly a fifth of businesses working in international trade planning to invest in their marketing spend and 15 per cent looking to develop new products. While 12% plan to invest in plant and/or machinery or extend their premises, just 5 per cent will invest in training.
When examining further opportunities for 2017, 12% recognised the value of extending their offer with additional services to increase revenue.
Almost two thirds (61 per cent) have contingency plans in place for foreign exchange risk and just over half (52 per cent) have a plan for credit risk. Whilst half have prepared for cyber attacks, less than a third of participants have a strategy to avoid the risks involved with customs compliance.
Institute Director General, Lesley Batchelor OBE, said: “The importance of businesses managing currency risk is a fundamental part of ensuring profitability when trading in international markets.
“The survey results indicate that 60% have plans in place for this, which is a significant level, however all businesses should do so. In practice, use of forward foreign exchange contracts and matching of currency payables and receivables are the most frequently used methods of managing this risk.”
The full report is available here.
Issued on behalf of the Institute of Export & International Trade by Quest Public Relations Ltd. Media contacts are Sharon Cain or David Gatehouse on 01423 564192, firstname.lastname@example.org or email@example.com. Out of office hours, contact Sharon Cain on 07711 391561.
More on the survey:
- 40% of respondents consult the Department for International Trade for advice
- 10% stated that scaremongering was the biggest threat to international sales
- IP infringement risk is recognised by 42% of participants
- 16% plan to consolidate by extening their market in the UK
- 25% of respondents are looking at developing new products
Results are from responses from 203 participants across international trade
About the Institute of Export & International Trade
The Institute of Export & International Trade (IOE&IT) was established in 1935 and is incorporated as a registered charity under the patronage of HRH The Duke of Kent. The Institute’s mission is to enhance the export performance of the United Kingdom by setting and raising professional standards in international trade management and export practice. This is achieved principally by the provision of education and training programmes.
Dedicated to professionalism and recognising the challenging and often complex trading conditions in international markets, the Institute is committed to the belief that real competitive advantage lies in competence and that commercial power, especially negotiating power, is underpinned by a sound basis of knowledge.
The IOE&IT is the only professional body in the UK offering recognised, formal qualifications in International Trade. As an awarding body with the QCF the IOE&IT is registered to make and grant qualifications. This includes modern apprenticeships, foundation degrees and all six levels of the National Vocational Qualifications (NVQs).
Visit http://www.export.org.uk/ for more information on the Institute.