West manufacturers are increasingly targeting overseas markets to fuel their growth, according to a new survey.
Despite the eurozone’s instability, some 75% of firms surveyed for the Manufacturing Advisory Service's (MAS) latest South West Barometer, hope to increase international orders by next year, with one in four aiming to boost export sales by 50% between now and 2016.
The survey showed 53% of respondents that reported an increase in sales turnover within the past six months and are forecasting increases to turnover in the next six months, are already exporting or plan to start exporting.
MAS area director Simon Howes, pictured, said: “While exporting is not an option for every business, results show that many West manufacturers are looking to capitalise on increased sales from exporting their goods.”
Bristol-based manufacturer TasteTech, a specialist manufacturer of controlled-release flavourings and ingredients and a creative pioneer in the field of microencapsulation technology, now generates more than 60% of its turnover overseas. Export sales have played an important part in a doubling of its turnover in the past five years.
TasteTech, which has worked with MAS, sells its products in 33 countries while its range of encapsulated ingredients and flavourings has been sampled in more than 60 countries.
Managing director Janis Sinton said: “TasteTech was founded to supply to the global market so exporting has always been part of what we do. With some of our products developed specifically for the chewing gum market, and with no UK manufacturers for this sector, exporting was essential if we were going to win customers.
“For a small company we have a truly global footprint and have built a fantastic network of customers, agents, distributors and friends. This is our 20th anniversary year and we are both very proud of our achievements and excited about future prospects.”
When the barometer asked questions about exporting a year ago 29% of respondents said they would need help in adapting their products to meet different (overseas) standards. However, in the latest barometer just 18% said this would be their biggest manufacturing challenge to exporting. Whether this is due to an increase in skills or increased capability remains to be seen, said MAS.
Simon added: “The fall in responses from companies needing support to adapt their products is particularly pleasing because assessing if products are export-ready or if they will need adapting to another market is a crucial part of any export business strategy. We think that this reinforces the fact that the West is home to an increasing number of smaller, agile businesses which demonstrate great ambition and creativity and are able to react well to changing demands. We would encourage manufacturers to fully utilise the network of support in place to help them succeed overseas, including tapping into support from our partners such as UK Trade and Investment.”
UK Trade and Investment regional director Russell Jones said: “Many businesses considering international trade are often put off because they feel they don’t have sufficient knowledge of the processes or legislation involved. Targeting and researching the right export markets is essential for success and that’s where UKTI and our partner organisations can provide invaluable support to help the region’s businesses flourish overseas.”
