Straight looks to treble export sales
RECYCLING products manufacturer Straight has set itself ambitious plans to more than treble its export sales.
The Leeds-based AIM-listed company has a turnover of around £25 to £30m. Exports represented 6% of sales (£1.5m) in 2013 for the group, but founder Jonathan Straight, said his ambition is to grow this figure to 20% of sales and £10m of turnover.
Mr Straight said: “We aren’t a massive exporter but we think very important lessons have been learnt in what we have done.
“We started pushing exports in 2008 and recently we’ve received our biggest ever export order for the Steelybin product – an order for 2,300 from Malaysia which is worth US $680,000.”
Straight group, which employs 115 people, has a manufacturing factory in Hull, which produces 90% of its products. It has also recently completed an export order for 22,000 of its Compost Converter home compost bins to the Republic of Mauritius.
Mr Straight said exports have been profitable for the group, which is coming into its 21st year in business and is active in Europe, Australasia and the Middle East. Mr Straight said the business makes a higher gross margin on overseas sales than UK sales.
Speaking at the launch of the International Business Festival – a three-day festival held before the Grand Depart event this summer – Mr Straight said there are different routes to market but for his firm, most sales are through distributors and agents in Europe.
He said finding the right partner can happen through acquisition, international trade shows, help from UKTI and networking events.
He also said that Straight’s partners are complementary – they’re similar but not got a competing product.
“My advice in exporting? Expect the unexpected. You’ve got to be open to anything. What you think is going to happen isn’t necessarily going to happen,” Mr Straight said.
“Make sure you understand the local market and competition and maintain a presence in the country – someone needs to visit and support your distributor. Supporting them at a trade show is a good idea. And be pragmatic.
“There are downsides to exporting – there is no guarantee of return and it may not work out. You need to keep revaluing the options and you need to understand the macro issues of the country first. If you don’t, you will make mistakes.”
