Strong growth forecast for West Midlands exports

Research from Alibaba Group UK, in partnership with Institute of Export and International Trade, found that 77 per cent of businesses based in the region are currently exporting.

A survey of 3,000 firms found 67 per cent in the West Midlands expect their exports to increase in the next 12 months with a fifth saying they expected a 'significant increase' in sales.

Also 81 per cent of businesses in the West Midlands said exporting had boosted their revenue.

Beyond the economic benefits of exporting, the research from Alibaba indicates the far-reaching positive impact on West Midlands businesses with 78 per cent of exporting businesses saying exporting had made them stronger, 73 per cent saying it had fuelled innovation within their companies and 68 per cent that it had increased their headcount as a result.

Businesses based in Birmingham hailed the benefits of exporting with 88 per cent saying it has forced the business to widen its product range and 86 per cent declaring that exporting has boosted business revenue.

When it comes to export markets, West Midlands businesses are looking close to home. Nearly a third (31 per cent) regard the UK’s nearest neighbours in the European Union as the market with the biggest export opportunity.

Despite the positive outlook, many businesses perceive challenges that could stand in the way of their export ambitions. The top five biggest export barriers cited by West Midlands businesses are price competition (26 per cent), production capacity (23 per cent), lack of cultural awareness and familiarity with overseas market (22 per cent), language barriers (22 per cent) and lack of exporting expertise (21 per cent).

For businesses focused on international growth, 66 per cent of those surveyed are currently using online marketplaces to boost their export sales.

Roland Palmer, general manager of UK, Nordics and the Netherlands at Alibaba Group, said: “Our research suggests that West Midlands-based companies are seizing the enormous global export opportunities which exist across the world.

“As a major UK city, it’s fantastic to see businesses in Birmingham in particular view export in such a positive light, showing clear growth potential for the region.

“By trading overseas, even small businesses can expand, creating more job opportunities and economic growth. Once a business starts to export, they realise the benefits outweigh the perceived barriers and they grow in confidence. We’re focused on helping businesses of all sizes on their export journey.”