In an increasingly globalised world, expanding into new markets is crucial for the growth and sustainability of the UK manufacturing sector. However, numerous barriers can hinder the export ambitions of British manufacturers. In this Made in Group round table, featuring panelists Graham Allison from Brandaur, Marie Palmer from Cast Iron Welding Services, Carl Hollier from Industrial Washing Machines and Will Parkin from Leonardt Ltd, we explore some of the key challenges they face and discuss potential solutions to unlock their full potential in exporting to new markets.
- Regulatory and Compliance Hurdles: One significant barrier to exporting for UK manufacturers is navigating the complex web of regulations and compliance requirements in foreign markets. Each country has its own unique set of standards and certification processes, which can be overwhelming and time-consuming for businesses. Meeting these requirements often involves investing in extensive research, adapting products or production processes, and acquiring necessary certifications.
Solution: To address this challenge, the UK government can play a crucial role by supporting manufacturers through comprehensive trade agreements that prioritise regulatory alignment and harmonisation. By establishing bilateral agreements and reducing trade barriers, businesses can benefit from simplified compliance procedures and increased market access. It was also suggested by members that one often overlooked competitive advantage can be to undertake all of this burden on behalf of the client to ease the passage of trade and remove the compliance barrier from buyers who may be apprehensive at dealing with them.
- Access to Market Intelligence: Lack of reliable and up-to-date market intelligence poses another significant obstacle for UK manufacturers seeking to export to new markets. Understanding customer preferences, market trends, and competitive landscapes is essential for making informed business decisions. Without access to accurate market data, manufacturers may struggle to identify potential opportunities or develop tailored marketing strategies.
Solution: The UK government can collaborate with industry associations and trade bodies to create initiatives that provide manufacturers with access to market intelligence. This can include organising trade missions, conducting market research, and developing online platforms or databases that consolidate relevant information. By empowering businesses with valuable insights, manufacturers can make data-driven decisions to target and capitalize on new markets effectively. Members also advocated (3/4 of participants), the role that domestic agents can have in terrirtories they are not familiar with in terms of local knowledge, contacts and boots on the ground.
- Financial Barriers: Exporting involves additional costs such as transportation, logistics, marketing, and adapting products to meet local market requirements. For small and medium-sized manufacturers, lack of financial resources can present a significant barrier to entering new markets. Limited access to working capital, export credit, or insurance can hinder growth prospects and discourage businesses from exploring international trade.
Solution: The UK government can support manufacturers by expanding financial assistance programs specifically tailored for exporters. This can include grants, low-interest loans, export credit guarantees, and insurance schemes to mitigate risks associated with exporting. Collaborating with financial institutions to develop favorable financing options can also help manufacturers overcome financial barriers and confidently enter new markets.
- Skills and Talent Gap: In an era of technological advancements and evolving market dynamics, having a skilled and adaptable workforce is crucial for manufacturers looking to expand globally. However, the UK manufacturing sector has faced challenges in attracting and retaining talent, especially in high-demand areas such as digital technologies and advanced manufacturing processes.
Solution: To address the skills and talent gap, the government can work closely with educational institutions and industry stakeholders to develop training programs and apprenticeships that align with the evolving needs of the manufacturing sector. By investing in vocational education, upskilling, and reskilling initiatives, manufacturers can cultivate a workforce equipped with the necessary skills to compete globally.
Conclusions: Despite the barriers faced by UK manufacturers in exporting to new markets, there are viable solutions that can unlock growth and create opportunities for the sector. By prioritising regulatory alignment, providing access to market intelligence, offering financial support, and investing in skills development, the UK government can empower manufacturers to overcome these hurdles and successfully expand their footprint in international markets. With the right support and a strategic approach, British manufacturers can position themselves as global leaders, contributing to the growth of the UK economy while fostering innovation and competitiveness.