Yorkshire SMEs set for overseas sales push

THE amount of products and services sold overseas by small and medium-sized enterprises (SMEs) in Yorkshire is set to increase in the next 12 months, according to new research from Yorkshire Bank.
 
The survey suggests that more Yorkshire SMEs are bullish about their international growth and plan to start exporting or increase their overseas sales, buoyed by improving economic conditions at home.
 
Only 42% of Yorkshire SMEs sold goods or services to overseas customers in the last 12 months. For those who do export, overseas sales account for 21% of their turnover at present. Over the next 12 months the expectation is that overseas sales will grow to 26%.
 
In the next 12 months, a third of businesses (33%) say they are more likely to start or increase their sales to overseas customers.
 
The latest official annual export figures show total UK export sales (including goods and services) reached £501bn in 2013. Goods exports totalled £304bn, while services exports totalled £197bn. The EU (£142bn) and the US (£40.9bn) remained the UK’s biggest trading partners.
 
In the spring Budget in March the UK Government doubled the amount of credit available to support overseas sales to £3bn. The government wants more UK companies to be exporting as it aims to reach export values of £1tn by 2020.
 
Of the 58% of Yorkshire businesses who don’t export overseas, apart from the 63% citing their products not being suitable for export, the threat of too much red tape (8%) and not having enough time (6%) are the biggest barriers to overseas expansion.
 
Across the UK manufacturing businesses are the most bullish about their exporting prospects in the next 12 months with two thirds of UK manufacturers expecting to start or increase overseas sales. This was closely followed by nearly half (48%) of IT and media companies expecting to improve sales internationally.
 
Alan Young, regional director for business and private banking at Yorkshire Bank, said:  “Yorkshire products and services are recognised globally for quality and innovation. Our businesses have a long and rich history of exporting to overseas markets. The eyes of the world will be on us this week as the Tour de France starts in Yorkshire and this is a fantastic opportunity to show what we can do.
 
“We know that Yorkshire businesses are feeling more confident in the UK economy and in their own ability to grow with it. Using improving domestic conditions as a springboard, more businesses will look to develop new products and create jobs in a bid to make a bigger global impact.”
 
Mark Robson, UKTI regional director for Yorkshire and the Humber, added: “This research is the latest evidence that exporting is key to economic growth, and highlights the continued appetite to export amongst Britain’s ambitious small and mid-sized business.
 
“Increasing support for small and mid-sized companies is a vital part of the Government’s long-term economic plan to create jobs and reduce the deficit. That’s why UKTI has written to all 8,900 mid-sized UK businesses to offer them tailored trade advice and an intensive programme of support to help them start exporting. Businesses excel with UKTI’s support and we encourage any company who wants to export to get in touch.”