Market is ripe for export expansion says banking director

Gary Saxon says despite the region already accounting for nearly ten per cent of all UK exports, there’s "more to be done" to help businesses in the region pursue international trade opportunities to help them maximise their growth prospects.

The call comes after the West Midlands Combined Authority announced over £630k of new funding to help the region's businesses expand their overseas operations. 

Last year, the region exported £34.9billion worth of goods overseas, the third highest in the UK after the South East and London. 

"There’s a growing appetite to do more," Saxon said. 

"Exporting is well-known for its ability to boost economic growth, so it’s not surprising that we’re seeing more businesses in the region considering the new investment and trade opportunities that exporting can bring."

He explained that international trade offers benefits to firms beyond increased revenue and profitability. Expanding into overseas markets allows businesses to diversify their customer base and better protect themselves from domestic market challenges or seasonal fluctuations. "By spreading trade across different countries, firms gain better protection against seasonality and shield themselves from economic downturns in their own market," Saxon noted.

At the same time, he acknowledged that exporting does come with risks, such as exposure to currency fluctuations and political instability. However, he reassured businesses that these risks can be managed effectively. "Firms can insure against non-payment with either a specialist provider or a bank, who will then take over that risk for them. Negotiating payments upfront is another way to add a layer of protection," he said.

This month, the West Midlands Combined Authority awarded £632,000 to the Coventry and Warwickshire Chamber of Commerce to lead a programme of support in Coventry, Birmingham, Solihull and the Black Country to help businesses take their first steps into exporting or to support firms in growing their international markets. The authority says the support package will help to boost the number of firms exporting from the region.

“Helping local businesses step into international markets is key to building a strong economy and creating good jobs for local people," said Richard Parker, Mayor of the West Midlands and WMCA chair.

“For many smaller firms, expanding abroad can be a springboard to success, giving them the chance to develop new products, boost competitiveness, and secure overseas customers. This programme provides the targeted support needed to make those first steps easier, paving the way for growth that benefits communities across the West Midlands.”