Special report on exporting

From Reading to Rio,

By Chronicle guest editor Alok Sharma MP
With a 20-year background in advising British and international businesses before entering Parliament, I have always been a keen promoter of exporting, especially by small and medium sized enterprises (SMEs). I was therefore really pleased to speak with Lewis Scott, the South East Regional Director of UK Trade & Investment (UKTI), about all the practical help his government agency is able to provide businesses in Reading looking to grow through exporting.
Q: Can you explain the role of UKTI and its relevance to SMEs in Reading and Berkshire? A: This government agency is responsible for supporting UK-based businesses to identify and win business in overseas markets. We have around 2,500 staff, the majority of whom are employed locally overseas, based in our Embassies, High Commissions and Consulates in all the key markets around the world. This means that they are plugged into the local business community and culture which is extremely important. We also have locally-based teams across England whose sole job is to work with businesses on a one-to-one basis to develop their potential to win international business. UKTI in the South East has a team of 12 in the Thames Valley area so we can work with business clients on a local basis but connect them to this amazing global network extending their reach from Reading to Rio, Riyadh or Rangoon. Q: What does your role as South East regional director entail? A: As the senior UKTI representative in the South East, my job is to act as the link between UKTI, businesses and business intermediaries in the region. I also provide strategic leadership, particularly around the Export Challenge, launched by the Prime Minister in November 2011, which is aimed at increasing Government policies but on the needs of the companies we serve and I can only get to understand those needs by meeting direct with those businesses. I have to say that this is the most enjoyable and interesting part of my job. Having managed a business myself and exported for many years, I still get a buzz from seeing examples of the incredible creativity and innovation produced by UK business. My job is to ensure their growth potential is maximised by supporting their business development activities in the international marketplace. Q: What can UKTI do to help small businesses make in-roads to overseas markets? A: In essence, our job is to help in: l Developing a companys export capabilities l Developing an export plan through discussion with an International Trade Adviser, all of whom have many years of export experience l Finding the right markets, and people to deal with in those markets, advice, men-

Weekly

Tools of the trade: From left, Olympia Tools MD John Bramwell with MP Alok Sharma, UK Trade and Investment regional director Lewis Scott and Olympias purchasing and marketing director Vahe Der Kureghian. 135483

Tools of the export trade

UKTIs International Trade Adviser Tony Warwick is currently supporting Olympia Tools (UK) Ltd, an award-winning manufacturer and distributor of high quality tools for both the DIY and professional user. The company, based within Asda, in Honey End Lane, Tilehurst, has been trading in the UK for more than 15 years and under the guidance of the current directors since 2006, the business has gone from strength to strength. Olympia Tools has been working with UKTI since 2009 and is currently on the Gateway To Global Growth scheme, a 12-month programme offering SMEs with export experience, bespoke guidance and support to diversify into new markets. MD John Bramwell says: We have received support from UKTI since early 2009, but we have become much more toring and support from UKTI staff at home and overseas in our network of Embassies, Consulates and offices in over 100 countries l Advising on grants for trade missions or overseas trade fairs l Setting up meetings overseas l Generally helping to make business happen with the least possible risk. Q: What are the benefits to the UK and local economy of exporting? A: Quite frankly, if we dont export, if we fail to sell our goods and services to the world, then we will not grow our economy. Starting from the bottom up, businesses that export are 11% more likely to survive than those that dont. Also those businesses that start on their export journey demonstrate a 30% increase in productivity in the first 12 months of exporting. From an individual busiclosely engaged with our Trade Adviser Tony Warwick this year in order to further our export ambitions. Through the Gateway programme we are now targeting further penetration into Middle Eastern markets and the major markets of Europe, and are planning our first inroads into Russia.

OLYMPIA TOOLS FACTFILE

www.olympia-tools.co.uk Last years turnover: 4m Percentage of export business: 17.5% Olympia is expecting to increase export business to 25% or more within the next few years. It exhibited at Cologne International Hardware Show and is planning to exhibit next year again and has already secured a grant from UKTI. six decades, Britain has been running a net-trade deficit, meaning we import more than we export. Part of UKTIs role is to reverse this position by increasing the number of exporters by 100,000 by 2020 and the value of British exports by 30bn which will dramatically improve our balance of payments. Q: How is UKTI expanding to take advantage of emerging economies, for example those in Malaysia and Vietnam? A: UKTI is a Government agency but we dont think or act like most Government departments in that we are highly commercial in our thinking and have the agility and flexibility to respond to market changes. Recognising the tightening of economies in Western Europe and other traditional UK export markets and the evidence of growth and opportunities in other global regions we have

y: s d l u oo st t e ia mp cas ly o

the number of businesses that sell overseas by 100,000 by 2020. This has the potential to add 30bn to the UK economy and create approximately 100,000 more UK jobs. Alongside all of this, I am tasked with setting the plans and priorities for my team these are not just based on

ness perspective, exporting reduces reliance on the domestic market,spreading the risk of peaks and troughs in demand and overall improves the health and fitness of the company, which in turn leads to a more sustainable and productive business community. We also know that exporting businesses are more research and development intensive and innovative than domestic-only enterprises. From a national UK per-

Here to help: Lewis Scott of UKTI.

Meeting SME owners is the most enjoyable and interesting part of my job

spective, exporting is good for the economy. For almost

Follow @ukti_londonSE on Twitter and join the UKTI

Special report on exporting

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Riyadh and Rangoon

C y: R d Y u FA st e OLD W cas TS O E
Hungry for a slice of overseas market: UKTIs Lewis Scott, left at Country Fayre, in Tilehurst, with Alok Sharma MP and the companys MD Paul Hargreaves. 135483 PHOTOS: CHRIS FORSEY IT has never been a better time for the diverse range of Berkshire-based companies to take advantage of export markets. The UK is the sixth largest trading nation and exporters contribute 60% of UK productivity growth. Economic research consistently shows companies that export to any country, in any financial climate, perform better than those that do not. UK Trade & Investment has a team based in the Thames Valley and its International Trade Advisers all have experience in the private sector. South East regional director Lewis Scott advises owners of small and medium business (SMEs) to call the UKTI for help and support as soon as they consider whether they should be considering exporting. He says: I have lost count of the number of times we meet clients who wish they had found UKTI to help them avoid the pitfalls involved in trying to develop their inter-

Take five easy steps

1. Visit www.ukti.gov.uk/ southeast 2. Call the UKTI customer service team on 08452 789600 or email info@uktisoutheast. com 3. An International Trade Adviser (ITA) will visit your company and build a plan tailored to your business objectives 4. Access support including master classes on topics such as researching overseas markets and maximising your website for overseas trade 5. Visit www.opentoexport.com, a community-driven service for SMEs looking for help and support with exporting from the UK.
national operations and sales. We can help with your market selection, sales channel options, finding overseas partners, risk and competitor analysis, export financing, exhibiting at events, market research and even take you to visit your target market as part of a professionally-led trade mission. There is also funding available to small and medium sized companies to support your export growth planning and activities. The UKTI website www. ukti.gov.uk/southeast provides information on help and support available and its Twitter feed @ ukti_LondonSE Mr Scott adds: My last piece of advice would always be do your homework... know your market, know your competition and know your customer.

An appetite to grow
Cotswold Fayre, in Tessa Road, is a fine food wholesaler providing independent retailers with high quality food and drink products. It also works with Bala Orphanage, in Kenya, sponsoring 40 children whose education, food and accommodation are paid for by the business, which is celebrating 20,000 raised at its latest charity event. With growing interest in British food throughout the world, in 2012, two of the companys top 10 customers were export customers. Cotswold Fayre has been working with International Trade Adviser (ITA) Peter Warren since 2008, completing UKTIs Passport To Export scheme a 12-month programme for new or lessexperienced exporters and has graduated onto Gateway To Global Growth. It has also used UKTIs Overseas Market Introductory deployed additional resources and support in High Growth Markets. In particular, resources to the BRIC countries (Brazil, Russia, India, China), which will help respond to this dynamic change in target markets for UK goods and services. But we have not stopped there. A second grouping of countries known as the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are having their UKTI resource enhanced. But we are also flexible. For example in the last year we have established a UKTI commercial team in Rangoon as a result of the encouraging signs of economic change in Burma/Myanmar. It is also hitching our wagons to the fast growing emerging economies in Asia and Latin America, which will feed growth into our economy. This will be a key focus for us over the next five years, not least as we are seeking to exploit our unrivalled exper-

Service (OMIS) and Market Visit Support (MVS). Founder and MD Paul Hargreaves says: Advice from the ITA, funding for trade missions and the general help given by UKTI have been enormously helpful in growing our export business, which we expect to double this year, albeit from a small base.Cotswold Fayre is currently growing at over 30% per annum and we expect export to be an increasingly significant factor in this impressive growth over the next few years.

cotswold fayre FACTFILE

www.cotswold-fayre.co.uk Last years turnover: 7.41m Percentage of export business: 3% Cotswold aims to double its share of export to 6% this year, with a targeted turnover of more than 9m. more information. We are running six trade missions to High Growth Markets in 201314, see appendix 1 for more information. We have also recently launched Headstart a new, low-cost scheme to help UK SMEs enter into South East Asian markets. High Growth Markets such as those in Asia and South America are becoming increasingly important to UK SMEs across all sectors. These are typically large countries, with young populations, increasing spending power and ambitious infrastructure plans.

tise and reputation in major sporting events. This follows London 2012 and supports UK companies in winning business for the Brazil Soccer World Cup in 2014 and the Rio Olympics in 2016. In addition, UKTI ran a national initiative in May called Export Week: High Growth Markets. It was attended by more than 100 companies in the South East. Another Export Week is running in November, visit www. exportweek.ukti.gov.uk for

There is funding available to SMEs to support your export growth planning and activities

South East group on Linked In