Can Your Business Cope With Foreign Demand?
Simon Howes, Area Director
To be successful in an international market it is essential that manufacturers get their houses in order.
For example, any problems within a UK operation – such as consistent late deliveries, frequent returns of faulty goods or low profit margins – will be magnified if a company ventures into foreign markets before resolving these issues.
The other important consideration is the current product range. Are the products suitable for overseas markets? Will they need to be adapted in any way – for example in terms of brand names, packaging, regulations and compliance issues – or in response to different consumer behaviour, demand and competitors? What changes will need to be made to the UK operation to service any off-shore business?
Strategy
Underpinning all of this is the need for a clear strategy. Our mission is to help manufacturers achieve their full potential by working closely with them both in the boardroom and on the shop floor, to deliver practical, tangible changes which impact positively on profitability and growth.
With just 37% of respondents to our latest Manufacturing Barometer reporting increased enquiry levels, compared to 54% in the previous quarter, there is no doubt that more needs to be done to boost order books if growth aspirations are to be met. Export is one of many options available to manufacturers and despite the challenges, is worth careful and thorough exploration – but only once any problems at home have been overcome and a solid basis for growth is created and sustained.
One of the ways in which our Manufacturing Specialists are able to make a difference is by enabling directors to develop a clear strategy for their business. Where export forms part of that strategy, we will ensure a business has the right capacity and capabilities, processes and products to consider international markets. At this stage, our partners such as UK Trade and Investment, EEN and the sector-specific innovation networks (iNets) in the South West, will be able to support your next steps.
Financial and marketing challenges
The continuing lack of financial support and marketing know-how remain two of the biggest stumbling blocks to manufacturers who took part in our Manufacturing Barometer. Half the respondents believe they could begin exporting – or increase their exports – if some of the financial concerns such as exchange rate fluctuations, set-up costs and funding were not so challenging and that they had a better understanding of how to effectively reach international markets.
It is obvious that companies which can demonstrate a robust and realistic strategy for growth are far more likely to attract the right kind of financial backing. A company that has the right product, the right processes and the right people underpinning that strategy is fundamental to any growth plan. Most of the support delivered by MAS is free or heavily subsidised.
