Region’s businesses bullish on international trade despite economic uncertainty
Businesses in the West Midlands are more bullish on international trade than the UK average, according to a new report.
The latest Navigator report from HSBC found that 89% of West Midlands firms are positive about the international trade outlook for their company over the next two years, exceeding the UK average of 86%.
This positivity is led by a change in strategy as firms in the region look to shift focus away from traditional trading partners in Europe.
The report found that 17% of West Midlands businesses ranked France as a current top three trading partner and 13% ranked Germany. However when looking ahead to the next three to five years those figures dropped to 7% for Germany and just 6% for France.
Meanwhile 14% of businesses ranked the US as a top three trading partner for the next three to five years (up from 13% now) and 10% selected Australia (compared to 5% now).
Fran Howell, HSBC UK regional director for corporate banking in the Midlands, said: “It’s encouraging to see that businesses in the region are so positive on the future of international trade. With economic uncertainty continuing, now is the time for businesses to look to build their customer bases by expanding into new markets.
“The West Midlands has a proud history of manufacturing and firms should take advantage of the reputation of ‘Brand Britain’ to secure long-term growth around the world.”
Despite the positivity around international trade, the report found that businesses in the West Midlands are less optimistic about the future growth for their business compared to the UK average.
Just over two thirds (69%) of firms in the region expect their business to grow in the next 12 months compared to a UK average of 77%.
However West Midlands firms are more positive in the long term with more than three quarters (76%) expecting growth in the next five years and just under a quarter (24%) expecting high growth of 15% or more.
