Is export growth more than just a short term trend?

We ask international entrepreneur, Neeraj Takiar' - Managing Partner Traumatec, whether exports are the key to manufacturing success.

With offices abroad, would you say exports and sourcing has been vital to your success?
"Absolutely. Global is where it must be. We export to nine countries and 40% of our business is export. Investment is approximately 5% of sales in research, development including staff training, and mentoring. Once you start to export you realise how good UK products are and the high level of service the UK offers. What would be a standard operating requirement here becomes a unique selling point abroad. So, exporting gives us a different perspective."

What are the benefits of exporting?
"Our drivers for Global export were the demand for better margins, to balance our currency risk, and economies of scale - selling the same product over and over to different markets. Statistics prove that if companies export in more than three countries they have a higher success rate and higher margins. Many businesses are focused on the local market and have a glass ceiling mentality when it comes to exporting. They don’t realise how easy it is to access the global the market is."

So, why don't more Northwest manufacturers jump on the global bandwagon?
"The fundamental problem many companies face is trying to understand who their customer really is and having a clear vision of that market abroad. Without that clarity they aren’t confident enough to seek customers abroad."

What should anyone looking to export for the first time be prepared for?
"It is important to have a focused export strategy so, understanding your market and knowing your customer intimately is important. Too many companies try to hedge their bets when exporting and the export strategy can become a shot-gun approach to business, which will lead to diluted results. If you genuinely know your customers and market then you should be able to find them in any country. There’s nothing to fear. However, you’ve got to be prepared to invest the time, and cost in good market research. This investment will accelerate your performance. Selling in the local language is also important. Whether the end clients speak English or whether business is finally done in English, we still contact, email, and communicate in the client's local language. It is not difficult to find the right staff, as Manchester is a multi-cultural city. There's plenty of support from places such as UK Trade and Investment."

How has exporting changed your business model?
"It's given us many different perspectives on the value of our product from different markets. It has helped is improve and develop our USP and our product offering. We understand more clearly where the perception of value comes from, which in turn has lead to more innovation. It's all about creating extreme value and genuine need for the consumer. This is especially important for textiles, where the biggest challenge is always pressure on margins. Any product we develop now is not just focused on the UK but internationally."

What do other businesses need to do to capitalise on export markets?
"Apart from understanding your customers and market research about those customers. Start with the same questioning you would use for your domestic market. Ask the key questions about your products/service, your market, and the opportunity? Whether it fulfils the same need abroad as it does in the UK? Is it the right time? Grade the value your product has to both UK customers and export prospects, which is greater? From a commercial perspective - how long will it take to break even? What is the acquisition cost for every customer? What is the margin comparison to UK sales for the same product or service?"

Where is your biggest revenue stream abroad?
"Licensing through Traumatec."

So, is exporting beneficial to business and, more importantly, can it boost the image of Northwest manufacturing abroad?
"Of course it's beneficial and healthy. The pressure to compete internationally has naturally lead to a change in UK manufacturers, and that’s part of evolution. It's healthy because it forces our objective. It's all about creating extreme value and genuine need for the consumer.
Companies that can offer extreme value and genuine need are the ones that succeed, especially for textiles, where the biggest challenge is pressure on margins.
The strength and value of UK manufacturers who export is one of innovation, quality and expertise. If you have talent, collaboration and a global vision then export and take UK innovation international."