Britain’s manufacturers are adopting new strategies in order to capitalise on the opportunities offered by growing export markets, according to a new report.
According to the findings from manufacturers’ organisation, EEF, and Barclays, companies are moving from ad-hoc exploitation to implementing sophisticated strategies to boost exports, with emerging markets occupying half of priority targets.
According to the report, the developed economies remain the top destination for UK goods, with the US the biggest. However, the increasing importance of emerging markets is highlighted by the fact China has moved from being the UK’s 11th largest market in 2007 to 7th last year with Russia and India (12th and 14th respectively) likely to enter the top ten in the next few years.
Furthermore, the report shows half the countries in the top ten priorities for manufacturers were emerging markets, with Brazil at the top with just under one third of companies planning to export there in the next twelve months.
Whilst the Eurozone remained the top destination for market involvement in 2013, almost two thirds of companies were planning to increase their involvement in Asia, just over half in the Middle East and just over one third in both Africa and South America.
“It is encouraging to see an increasing appetite amongst manufacturers to invest, export and grow their international footprint,” commented Mike Rigby, Head of Manufacturing at Barclays. “If the sector is to be at the forefront of an export-led recovery, it appears manufacturers are up to the challenge. They not only realise the benefits of exporting to markets nearer home but also, of taking their goods further afield to faster growing emerging market economies where the export sales potential is far greater.”
‘Tracking the Export Journey’ is available to download from eef.org.uk