Special Exports Report: Go West for better growth prospects UK firms told

IF the UK is to significantly increase its share of global exports then business needs to move its focus from the emerging economies or Brazil and Russia to those offering high growth and high value potential.

Launched to coincide with UKTI’s export week, a new report from EY draws on studies and research undertaken by the EY ITEM Club over the last three years together with other work commissioned by EY and the British Chambers of Commerce.
 
It concludes a shift from Brazil, Russia and others to a more balanced portfolio such as those offered by the ACE markets (America, China and Eurozone) and India for the future could offer firms better results.

To mark Export Week, TheBusinessDesk.com has joined forces with Lloyds Bank and UK Trade and Investment (UKTI) to assess some of the issues facing the SME sector and just why more small firms do not export.Lloyds Bank logo

Our contributors have offered their thoughts on the matter and explained what steps they have taken to become successful exporters in the hope it will help others in their own quest.

To download a copy of the supplement click here or on the cover image below.

Exports Supplement

In recent years, the ITEM Club said the consensus has pushed UK exporters towards the BRICs even though it is not clear that these markets offer the best fit with the UK’s capabilities. EY’s analysis reveals that UK exporters need to shift their focus and have a more balanced portfolio that combines high growth and high value markets – playing the ‘ACE’ card to target America, China and Europe – and developing a stronger position in India over the medium term.
 
Mark Gregory, EY’s Chief economist, said: “If the UK is to achieve its ambition of becoming a global export powerhouse and reversing the long-term decline in global export market share, then businesses need to shift from a narrow focus on the emerging markets as the source of growth, towards a balanced portfolio.  America, China and Europe should be at the core and India as the development bet – with the latter really showing accelerated growth towards the end of the next decade. These markets combine higher growth and demand and fit well with the UK’s existing and potential capabilities in goods and services.”UKTI Logo Nov 2012
 
Sara Fowler, Senior Partner at EY in the Midlands, added: “The report’s call to action for UK business is strikingly clear: over the long term the most important factor in export success is being present in the fastest growing markets and having the agility to identify and respond quickly to growth opportunities.  If, as seems likely, the world economy is going to be more volatile and challenging in future, then agility to change geographic focus and adapt the offer to meet demand will be even more important.”

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