Banking group Santander has released its fourth annual Trade Barometer report, which has revealed that more than half of businesses (59 per cent) with an international focus remain optimistic about their prospects for growth over the next three years.
Looking ahead of the business surveyed, around a quarter (26 per cent) said that international trade will be more important moving forwards, particularly as a result of the pandemic.
In comparison, only five per cent of those questioned expected international trade to be less important to them.
The report suggests that “in a depressed domestic environment targeted international trade opportunities can help deliver economic revival”.
The report also found that 80 per cent of internationally trading companies are confident about future growth, compared to just 70 per cent of businesses trading only in the UK – indicating the benefits that come from overseas expansion.
Of course, barriers do remain to international trade and the report found that:
- 70 per cent of internationally trading businesses say that future growth is dependent on their ability to attract skilled staff.
- Nearly two-fifths (39 per cent) of companies view shipping costs as a challenge when operating in international markets.
- 42 per cent of international companies see bureaucracy as a major operational challenge.
- 43 per cent of companies anticipate that rising inflation will negatively impact their business in the next 12 months.
When it comes to where British businesses hope to trade, North America is regarded as offering the most attractive growth prospects. However, Australia has jumped up in the rankings as well in the latest report.
A full version of the report and its findings can be found here.
Despite the challenges reported in these findings, there is still clearly a strong appetite among UK businesses to expand their sales and operations overseas.
A key finding of the report is that many exporters and traders lack trusted partners who can assist them with their growth.
Reanda UK is a subsidiary of leading independent accountancy firm Grunberg & Co Limited. Our aim is to help businesses and individuals to navigate the UK’s world-renowned business and tax infrastructure, and to support them with their international ambitions. To find out how we can help you, please contact us.