This week’s Virtual Breakfast Morning from the Made in Group saw industry leaders gather to share their experiences regarding a variety of important industry topics, including a designated group which discussed “International Trade Challenges & Successes”.
The UK has a rich history of manufacturing, with a reputation for producing high-quality goods that are in demand all around the world. However, in recent years, British manufacturers have faced a number of challenges in getting into international trade. In this discussion, attendees explored some of the main issues that UK manufacturers face when trying to expand their business overseas.
One of the biggest challenges that UK manufacturers face is the cost of exporting. There are a number of costs associated with exporting goods, including shipping, insurance, customs fees, and tariffs. These costs can be particularly high for small and medium-sized enterprises (SMEs), which may not have the resources to absorb them. As a result, many UK manufacturers are hesitant to enter new international markets, particularly those that are geographically distant or have complex trade regulations.
In addition to these challenges, UK manufacturers also face a number of regulatory and bureaucratic barriers to international trade. For example, different countries have different standards and regulations for products, which can make it difficult for UK manufacturers to sell their goods in certain markets. Similarly, recent research from HSBC found that 33% of businesses reported that dealing with more regulation was a challenge for manufacturers in international trade.
Attendees of this discussion were unanimous in the belief that building and managing relationships is the key antidote to any challenges which are faced surrounding international trade. Establishing and maintaining positive relationships with customers, suppliers, distributors, and other stakeholders can help manufacturers build trust, credibility, and loyalty, which are essential for long-term success in any market.
Effective relationship management also allows manufacturers to stay attuned to market trends, customer needs, and changing regulations, which can help them adapt and innovate in response to new challenges and opportunities. By investing in relationship management, UK manufacturers can not only improve their chances of success in international trade but also foster mutually beneficial partnerships that can drive growth and innovation in the global marketplace.
In conclusion, while UK manufacturers face a number of challenges in getting into international trade, there are also opportunities for growth and expansion in new markets. By focusing on specific markets and focusing on crafting and strengthening their relationships with other people and businesses, UK manufacturers can overcome these challenges and succeed in the global marketplace.