Special Exports Report: Manufacturing sector marks out West Midlands as key exporting region
THE strong manufacturing sector within the West Midlands continues to mark the area out as a key exporting region.
Mark Cadwallader, area director SME Banking at Lloyds Bank Commercial Banking in West Midlands, said that as the region marked Export Week, now was a good time to recognise the important role cross-border trade has on the UK-economy, while at the same time being an ideal opportunity to celebrate the sterling reputation British goods and services have on the international stage.
To mark Export Week, TheBusinessDesk.com has joined forces with Lloyds Bank and UK Trade and Investment (UKTI) to assess some of the issues facing the SME sector and just why more small firms do not export.
Our contributors have offered their thoughts on the matter and explained what steps they have taken to become successful exporters in the hope it will help others in their own quest.
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Mr Cadwallader said: “At the heart of exporting activity here in the Midlands is our robust manufacturing sector, which has trade links all over the world, and has played an intrinsic part in the region’s economic recovery.
“Currently, wider economic trading conditions remain generally steady, and with lower global commodity prices helping to offset rising wage costs, regional businesses should remain confident and continue to explore growth opportunities abroad.”
He pointed to the example of a firm such as Dudley-based Midtherm Flue Systems, a manufacturer of commercial and domestic flue systems, which has embraced the opportunities offered by successful exporting.
“After investing in its manufacturing capabilities with support from Lloyds Bank, it was able to increase its production outputs, and subsequently expanded its export activity to Europe,” said Mr Cadwallader.
“On the back of that success, the business also won contracts in fast-growth markets in the Middle East and Asia, including a contract to supply the exhausts and flue systems for the Burj Group in Dubai.
“It is stories like this that showcase the success of British exports, and it is great to see businesses triumphing overseas despite global economic uncertainty, which has seen firms taking a more cautious approach to international business strategy in recent months.”
He said that while macro-economic fluctuations were difficult to offset, there were multiple support avenues available for firms to help mitigate obstacles to entering the global marketplace.
“The impact of factors such as late payments, currency fluctuations and trading across different time zones can all be reduced with the help of specialist financial facilities like trade finance,” said Mr Cadwallader.
“This working capital facility is designed to ensure that the cost of trading overseas has a limited impact on cash flow and profit margins, and is useful to businesses looking to grow their export activity or do it for the first time.
“Looking ahead to the next twelve months, the onus is on ambitious management teams in the West Midlands to work closely with their advisors and seize export opportunities, to continue to fly the flag for UK plc abroad.”
