The Tour de France victory by Bradley Wiggins may have lifted spirits but, according to the fifth DHL/BCC Trade Confidence Index, that looks like the only encouragement exporters will get from the continent in the near future.
Produced by the leading logistics company and the British Chambers of Commerce (BCC), the Index is recognised as a measure of the UK’s exporting health. The latest edition reveals however that expectations for a “super summer” have been overshadowed by the Euro-zone crisis and concerns around currency fluctuations.
The report, which draws on a survey of over 1000 exporters and an analysis of export documentation (required of all companies exporting goods outside the EU) found 40% of firms stating that exchange rates were a concern.
A net balance of just +21% of firms felt profitability would increase in the coming 12 months, down from +30% the previous quarter, with falling profitability expectations across all firm sizes.
These results were in spite of the expectations of a summer of celebrations and high hopes for the economic impact of the Olympics and other events on exporters.
They are in stark contrast to research conducted in 2010 by DHL, which found that 56% of businesses anticipated that the focus on London over this period will create greater global demand for British goods.
Phil Couchman, CEO of DHL Express UK and Ireland said he remained confident that this once-in-a-lifetime opportunity, putting British businesses firmly in the spotlight, could still present a fantastic opportunity to make inroads internationally.
He highlighted the fact that the Index showed an increase in the number of firms reporting an increase in export orders, up from +39% in the first quarter (Q1) to +49% in Q2.
“To sustain momentum,” he concluded, “businesses large and small should start thinking now about how best to serve this international audience once the events are over, by initiating an export programme for their goods and services to reach that target market.”
