Chris Holland looks ahead to Export Week next month as efforts to boost overseas trading by local firms gathers pace

WITH new figures showing exports of manufactured goods tumbling by 17 per cent over the past three months, efforts to get more firms selling overseas are even more vital.

The latest CBI Industrial Trends Survey revealed that export orders for the three months , fell at their fastest pace since October 2012, possibly down to the continued strength of the pound.

CBI director of economics Rain Newton-Smith said: "Manufacturers have been struggling with weak export demand for several months, because of the strength of the pound and subdued global growth.

"But now they're also facing pressure back home as domestic demand is easing.

"While on balance, firms expect orders to stabilise next quarter, it's disappointing that firms are having to scale back their investment in innovation."

Ms Newton-Smith added that the CBI wanted the Government to protect export and innovation spending, alongside other growth-boosting areas, in its comprehensive spending review in November.

The recent controversial state visit by China's president Xi Jinping delivered a boost to potential earnings from the world's second largest economy.

Two local beneficiaries of a pledge of £6 billion of Chinese money to help build two nuclear reactors at Hinkley Point in Somerset, will be Ilkley-based construction and engineering group NG Bailey and Horsforth-based management consultancy Turner & Townsend which have both been listed as preferred contractors for the proposed Hinckley Point C project.

Through its joint venture with Balfour Beatty, NG Bailey has been named as a preferred bidder for £460 million of work. Turner & Townsend is the preferred sole provider of project controls and project management for Hinckley Point C.

The Government says new deals with China were worth around £30 billion, and Chancellor George Osborne has defended the UK's desire to have close ties with China, despite the controversies over human rights and steel dumping that were raised during the state visit.

The quest for more export business in China and elsewhere will be in focus next month during UK Trade and Industry's annual Export Week on November 9-13, which includes a range of events in West Yorkshire.

One local entrepreneur with first-hand experience of dealing with the Chinese is Eric Hawthorn, founder and managing director of Shipley-based technology firm Radio Design Ltd., which pioneered the world’s first technology enabling mobile phone network operators to share communications masts,.

The £22 million turnover company, which sells more than 70 per cent of its output overseas, collected a Queen's Award for International Trade from the Duke of York. who visited its manufacturing base in Salts Mill earlier this year.

Radio Design has an expanding repair operation in Wuxi, China, and Mr Hawthorn will outline its foundation and progress at an Export Week workshop being hosted by the company .

Eric Hawthorn and is also a regional export ambassador promoting Leeds City Region business and encouraging firms to start selling overseas or expand their exporting activities. He is advises the Leeds city region Local Enterprise Partnership, on international trade and believes that relying on the UK, which has only one per cent of the world’s population, would limit local firms’ ability to grow.

He supports moves to forge closer trading links with China and believes the UK should not shy away from using Chinese money to fund major projects which could benefit local manufacturers and service suppliers.

"I think the visit by president Xi Jinping will prove to have been a positive thing and, apart from the deals announced during the visit, will bring two trading nations closer together and create further opportunities for firms in this area and the UK generally.

"Our own experience in China, where we are developing a business servicing the internal market, has been a positive one . We have recently added six new staff , taking the workforce in China to around 26 and we're looking to double turnover from £1 million to £2 million over the next year," he said.

All Radio Design's production is at Saltaire from where it supplies the technological know-how, research and development and hardware to support its Chinese repair business as well as its developing operation in India.

Eric i also keen to promote the We Are International export drive being co-ordinated for the LEP by Bradford-based trade specialists at Chamber International and has participated in various networking and export promotional events.

He said motivating firms to start exporting or expand their overseas trade remains vital to economic growth - even though trading with Europe had become less profitable due to the strength of sterling against the euro.

Currency fluctuation has made it 25 per cent less profitable to sell into the EU but it remained an essential market for UK goods and services.

Eric said: "Currency rates are important but tend to be a variable issue, either working against you or in your favour. .Obviously a strong pound makes it more difficult to make as much money from of exporting but is not a reason to ignore the opportunities.

"Getting a foothold in a new market should have long-term benefits for a business and I would urge firms not to be put off by the potential obstacles of selling overseas, which can be a tedious business but rather use events like Export Week to increase their knowledge of the mechanics of exporting together with the opportunities that exist to boost their trade ."

The free workshop at Radio Design on Friday November 13 will be staged with the support of Shipley MP Philip Davies and the China-Britain Business Council and will focus on China. It will focus on the rapidly changing situation in China and what it means to businesses , including taking a realistic approach to seizing opportunities and managing risk.

Vince Cunningham, CNNC China business adviser will discuss the business climate in China and how to turn trading opportunities into reality, while lawyer James Love will outline how to manage intellectual property. Colin Russell, of UKTI,. will explain how the Government-based body can help firms develop trading links with China.

Three leading Calderdale exporters will feature at a free breakfast event for budding and expanding exporters on Wednesday November 11 at Dean Clough, Halifax. It is a joint initiative between UKTI Yorkshire , Calderdale Council and the Leeds City Region Local Enterprise Partnership .

Experts from accountancy firm Mazars will offer advice on key topics such as preparing for export, how to access overseas markets, local tax, VAT and financial issues and ‘hot’ regions at a breakfast seminar at the firm's Leeds office on Wednesday November 11.

An event looking at global opportunities in the chemical sector will be held at the offices of Clarion Solicitors in Leeds on Friday November 13.

Webinars focusing on the steps required to create a successful international business online will also take place.

Mark Robson, UKTI regional director, said:“Export Week is an ideal opportunity for companies to learn more about international trade opportunities, and the support available to help them fulfil their exporting ambitions. Whether a newcomer or an existing exporter looking to expand, the week offers something for everyone and we look forward to welcoming you.

"Exporting helps companies to grow, and taking those initial steps to find out more can prove invaluable. UKTI and our partners in Yorkshire and the Humber are determined to help local companies succeed in the global race. We’re already working with thousands of companies across the region to do just that – we want to help a great many more.”

For more information about Export Week log onto the website at exportweek.ukti.gov.uk and click on the Yorkshire and Humber programme.