Yorkshire manufacturing: Targeting international markets
THE weak pound and a flat UK economy is encouraging manufacturers to look at new markets overseas.
Huge potential is seen in the so-called BRIC countries – Brazil, Russia, India and China – but the challenges facing the global economy are also creating opportunities in mature markets.
Mark Robson, UKTI’s international trade director for Yorkshire and the Humber, said: “A number of companies are seeing opportunities now because their French or German competitors are having problems.
“I know an example of a packaging firm for the food and drink sector where France had always been a closed market because a locally based competitor always got the business but now they have an opportunity to supply that market as they are fitter than the French competitor, who is struggling.”
Major issue for potential exporters is finding suitable finance for any new venture and managing the risks involved.
Richard May, managing partner for DLA Piper in Sheffield, said: “There is still a sentiment that exporting will be the biggest area of growth for manufacturers but overseas expansion into brand new overseas markets has slowed.
“Manufacturers are looking at exporting but they are concentrating on new products in existing markets because its lower risk and it can be expensive to enter a new jurisdiction.”