October 11, 2022
- Percentage of Sshopping center and MAverage height Ecompany (SME) exporters reporting increased export sales drops at 22%, 35% in Q2
- Just one more quarter (28%) of SME exporters saw their sales decline, while 50% report no changeat T3
- Only a third of SME exporters (34%) expect to see an increase profitability in the next 12 monthswhile 39% expect a decrease
A survey of more … than 2,200 United Kingdom SME exporters revealed a worrying decline in export growth after five consecutive quarters of flat activity.
More exporting SMEs are now report a fall overseas sales (28%) who report an increase (22%).
BCC Quarterly Business Confidence Outlook for Q3 2022 Alsoh show a considerable part of SME exporters are under increasing pressure on thego operating margins 65% expect their prices to rise, but 39% expect their profitability to fall.
SME mmanufacturers operating overseas are particularly under pressure with only 32% expect their profitability to increase over the next twelve months and 42% expecting a decrease. Although SME service exporters are slightly more optimistic than manufacturers, 37% expect a decline in profitability, while 35% expect an increase.
SME mexporters of manufactured goods are also the most likely (73%) to expect higher prices next year, close to record.
Nearly 9 in 10 (89%) companies in this sector cite “raw materials” as their main cost pressure, with 80% citing ‘public services’ and 75% quoting labor costs.
Responding to the findings, UK Chambers of Commerce head of trade policy, William Bain, said:
“The youK The government has an ambitious program to promote exports and we look forward to working with the new DIT Ministerial crew at to help get britain Again. But with a trade deficit still above £20 billionhe mfirst of all increase business confidence and ability to sell abroad.
“There are significant opportunities for exporting SMEs to exploit free trade agreements, but too many companies are currently unaware of them or do not know how to take advantage of them.
“The British Government requires focus on raising awareness of these offers, especially with small businesses. It must also involve companies more in the negotiations, so that they are more involved from the startand take decisive action to reduce some of the costs associated with EU red tape for traders.
“are those who have been really deal with the pain of the current difficult international commercial conditions.
“They are much more exposed to combination of supply chain disruption, soaring prices and the impact of Brexit bureaucracy and compliance coststhatnot greater cocompanies.
“EIs to research reveals the trends which are often masked in the ONS figures by the high value and trading volumes of large companies. Oyou the data shows there are serious underlying problems – hitting smaller manufacturing exporters the hardest.
“But ohyou Chamber Network is ready to help. We are experts in international trade and have subsidiaries in 78 markets around the world to help make the strategic connections needed to effectively tap into new markets.. We urge Great Britain government to use our roomer Network for their local reach and global network to get Britain selling again.”