SME exporters expecting sales surge
THE region’s exporting believe international sales will increase in the next 12 months.
Research by Yorkshire Bank also suggests that around 17,600 SMEs in Yorkshire and the Humber which currently do not export intend to start selling their goods and services internationally in the next year.
In total, exporting businesses are anticipating international sales to make up 16% of their total annual turnover and more than half expect sales to increase in the same period.
This optimism is encouraging in the face of what appear to be challenging trading conditions for UK exporters. In August 2013, €1 would buy approximately 87p. In March of this year €1 would only buy around 70p. As a result, demand for UK products has weakened.
However, only a small proportion of the region’s SMEs (2%) expect their exposure to overseas markets to decrease.
Across the UK, businesses in the East Midlands and London are feeling most bullish and more likely to start exporting. More than one in ten (12%) of SMEs in both regions expect to start international sales drives in the next 12 months.
That optimism is matched by construction (11%), transport (14%) and food and drink (11%) businesses who are the most ambitious and will start exporting.
The survey also shows that it is larger businesses in the SME bracket (100-249 employees), who are more likely to embark on international sales for the first time with around one in ten businesses which currently don’t export, expecting to start this year.
Alan Young, regional director for business and private banking at Yorkshire Bank in Yorkshire and the Humber, said: “In recent years the challenging conditions in our economy have pushed UK businesses towards more buoyant overseas markets for growth.
“British businesses have a rich and proud heritage of producing goods and expertise which are instantly recognised for their quality across the world. We have always looked to innovate and trade beyond our borders.
“However, we know that many of those companies who require investment to assist their growth in overseas markets are exporting services and technology, and possibly don’t have traditional bricks and mortar to borrow against. We understand this, and our approach ensures we recognise all aspects of the business, including their intangible assets when looking at providing support.”
