In Focus Commercial Credit


Ready and prepared for a post-Brexit future?


Research shows that half of exporters have not updated their trading plans following the EU referendum


Clive Higglesden Head of trade & supply chain product, Lloyds Bank Global Transaction Banking


Almost half of Britain’s exporters have not reviewed their exporting strategies as a result of the UK’s decision to leave the European Union (EU) last year, according to our new research. That is despite the fact that the EU is a


trading partner for 85% of firms that have exported in the past year, and is the region they have exported to the most in the last 12 months for 54%.


Further afield Of those that have reviewed their strategies since the referendum, more than a quarter (27%) said they planned to look further afield to take opportunities outside the EU. But almost a third (30%) planned to focus


on domestic opportunities instead. This creates a greater concentration risk on the UK economy, and exposes companies to UK economic cycles. With a year since the vote and negotiations


to leave the EU underway, it is concerning to consider that almost half of British exporters have yet to assess what changes may occur and what action needs to be taken. Wait-and-see is not really an adequate


strategy for exporters, and businesses should be acting now to manage any risks on the horizon and possibly explore new opportunities. However it is comforting to see that a quarter of firms are already looking at new markets beyond the EU, which is important for ensuring reduced impact from any loss of access to the EU Single Market. For companies that have elected to focus


on the UK, they need to be conscious that they will be more greatly impacted by UK


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business cycles. Diversification into new markets is an important way of managing this risk.


Challenges and opportunities We questioned more than 1,000 exporting businesses of all sizes across the UK about the challenges and opportunities they currently face. We found that volatility in exchange rates


was exporters’ biggest fear in the next five years, with a quarter of those who have exported in the last 12 months rating it


as their top challenge, closely followed by the potential introduction of trade tariffs, chosen by 19%. Even among businesses that have exported


to non-EU markets in the last 12 months, half (51%) said they would be negatively affected if the UK left the EU without a replacement trade deal. Yet even considering these challenges,


firms expect to become more competitive during the next five years. Almost half (45%) of exporters, who would


With a year since the vote and negotiations to leave the EU underway, it is concerning to consider that almost half of British exporters have yet to assess what changes may occur


seek any support or advice if they were to encounter any market access barriers, expect their businesses will be more competitive internationally by 2022, compared with just 17% who think they will be less competitive. While traditional partners in Europe and


in English-speaking regions remain popular destinations for those looking to export, one in eight of those who have not exported in the last year but think they might in the future would like to trade with Japan, and a similar number (12%) want to trade with the Middle East. CCR


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