Nick Archer

Director, Africa, the Middle East, Russia, Turkey and Central Asia | Trade |

16 October 2013

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The UK Government’s ambitions

1. Double UK exports to £1 trillion a year by 2020;

2. 100,000 more UK companies exporting by 2020;

3. one in four UK companies to export (European average) rather than one in five at present;

4. maintain the UK’s position as the most favoured location in Europe for inward investment; and

5. become the number one location in Europe for investment from emerging markets.

1. Support UK companies to grow their business through international trade;

2. connect UK business to the world’s top commercial opportunities;

3. attract high quality inward investment to the UK; and

4. establish whole-of-government relationships with major wealth creators to increase exports and investment.

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UKTI’s mission

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Trade objectives

1. Help 40,000 SMEs to export this year and 50,000 by 2014/15,

2. helping generate additional sales of £49.0 bn this year and £56 billion by 2014-15;

3. to include £10.0 bn of business from high-value opportunities (major projects) overseas for FY2013-14.

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UK export markets

• The UK is a major trading nation

– able to capitalise on the single market through the EU;

– ‘socially close’ in culture and language to several major markets.

• More UK companies are looking further afield, at high growth markets.

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Why use UKTI trade services?

• Unrivalled global network of specialist advisers in UK and overseas.

• From October 2011 to September 2012 UKTI helped over 29,000 businesses and is on track to meet its 2012/3 target of 32,000 businesses assisted; final results for FY 12/13 will be published in September 2013,

• UKTI created 38,000 new jobs and securing a further 84,000.

• UKTI supported over £800m of major project wins in 2011-12.

• Helped secure £8bn of defence and security exports.

• Customers report improved business performance (50%); significant business benefits from working with UKTI (68%); and increased R&D investment.

30% in two years*

UKTI supported over

£800m of major project wins in

2011-12.

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UKTI trade services (1)

UKTI can give advice on whether a firm is ready to export by:

UKTI really opened doors for us, and we knew we were engaging with exactly the right person at each organisation.” Gary Mawer, Founder and Chairman, UPL

• developing an export plan;

• counselling on the right markets, and people to deal with in those markets;

• advising on grants for trade missions or overseas trade fairs;

• setting up meetings;

• and generally helping to make business happen.

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UKTI trade services (2)

UKTI’s export services help customers to:

• understand how to do business overseas;

• gain powerful insights into global markets;

• identify opportunities and open doors;

• reach customers/business partners not otherwise accessible;

• raise their profile and credibility overseas;

• overcome barriers to entry or expansion;

• improve overseas marketing and communication strategies;

• understand the competition;

• access powerful research to inform management decisions.

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Business Opportunities service

• Business Opportunities is a FREE service for UK companies provided via the UKTI website

• It provides over 500 overseas sales leads each month - from large public sector contracts to private company procurement

• These are sourced by our British Embassies, Consulates and High Commissions in over 100 markets worldwide

• It is quick and easy to register and sign up for alerts via the UKTI website at www.ukti.gov.uk

• Once UK companies have registered their interest in an opportunity the relevant person at our UKTI office overseas will contact them with more information

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UKTI trade services portfolio (1)

• Passport to Export

• Export Marketing Research Scheme (EMRS)

• Overseas Market Introduction Service (OMIS)

• Export Communications Review (ECR)

• Events and seminars

• Outward trade missions

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The UKTI ECR consultant was inspirational: hugely experienced with a wealth of knowledge. Working with him provided us with invaluable insights and ideas." Andy Cox, Director, Cox Plant Ltd.

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UKTI trade services portfolio (2)

• Tradeshow Access Programme (TAP)

• Inward trade missions

• Business opportunities

• High Value Opportunities (HVOs)

• Aid-funded business

• Gateway to Global Growth (for experienced exporters)

• Open to Export

• Venture Capital Unit

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UKTI Events Team

• An expected 27,000 companies will attend the 310 activities delivered by UKTI’s Events Team in 2013-14.

• Over 200 events will be delivered in 45 overseas markets.

• The events span all UKTI’s priority sectors.

We support companies through a mix of activities:

– inward and outward trade missions;

– market opportunity briefings;

– sector and capacity-building seminars;

– international business-matching events;

– bespoke trade shows, exhibitions and conferences.

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Open to Export

Open to Export is a new and innovative community service where companies can get the support to take their business overseas.

Companies can:

• get bespoke answers to meet their business needs in new markets;

• access practical information on all the important export topics from getting started through to cultural essentials;

• connect and engage with a range of exporters and service providers;

• explore the latest international opportunities for their business.

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Support for high-growth and innovative SMEs

Three new Units have been established in UKTI to support high-growth and innovative SMEs.

• Science & Innovation UnitUKTI’s focal point for relationships with science and innovation bodies across Government and internationally.

• Technology Partnership UnitTPU’s role is to link high-growth technology-focused SMEs with global value chains.

• Venture Capital UnitThe VC Unit has been established to link up high-growth and innovative SMEs with overseas sources of venture capital.

How UKTI is helping mid-sized businesses

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• The 2011 (sic) Autumn Statement announced an extra £10m for UKTI to double the number of mid-sized businesses (MSBs) it works with to 3,000.

• To help deliver this, UKTI is expanding its International Trade Adviser network to increase engagement with MSBs.

• MSBs can be expected to benefit from UKTI’s HVO programme.

• Lord Green and John Cridland (CBI) led the UK’s first ever MSB-focused trade mission to Turkey this year.

• Further activity has included an opportunity for MSBs to meet Ambassadors from Asian markets to discuss business opportunities, while further MSB specific missions are being considered.

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Trade - statistics

The UK’s overall exports grew by 10.5% in 2011 (ONS),

• in line with our ambition of 1 trillion exports by 2020 (requires 8% growth p.a.).

• Goods exports rose to all of our top 20 markets except Spain.

• Emerging markets are rising up the list

of our top export destinations.

Strengthening Overseas Business Networks

A new International Chambers of Commerce Unit in UKTI - established to grow the UK’s overseas Business to Business support networks.

• Additional to UKTI’s best-in-class export services.

• By 2017 the services offered by British business to British business in overseas markets will be a match for any in the world.

• The £8m pilot programme in 20 markets will radically enhance the support to UK SMEs over the next 3-5 years.

• Being developed with leading UK business organisations such as the BCC, to ensure a smooth journey from domestic to overseas markets.

• Continuous programme will be rolled out in further markets following the pilot.

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Working with stakeholders (the National Export Challenge)

•‘Exporting for Growth’ reaches out to trusted intermediaries to get the message across about exporting.

• Over 100 such partners have signed up to make use of our export guide, reaching many thousands of potential new exporters.

• We have reached thousands more at events around the country, and with an ‘Exporting for Growth’ prize co-sponsored by HSBC and PwC.

• Our Business Ambassadors help to promote the UK’s excellence internationally and highlight trade and investment opportunities.

• The Prime Minister's Trade Envoys programme is designed to help promote trade in certain growth markets.

We have a challenge to increase the number of UK firms that trade abroad, but UK Trade & Investment cannot do this on its own. This is a National Challenge"

Lord Green

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Defence and Security Organisation (DSO) objectives

1. Maintain the UK’s position as the 2nd largest global defence exporter, with at least 20% of global defence sales.

2. Achieve 5% of global security market.

3. Provide the essential government-to-government relationships which underpin commercial campaigns in these sectors.

2020

Investment objectives for the UK

1. Maintain position as most favoured location in Europe for inward investment.

2. Aim to be the number one or two location in Europe for FDI out of emerging markets.

2. Continue to attract high value investments from all markets in which UKTI is represented.

3. Enhance inward investment support in growth markets, such as the Gulf and Russia.

4. Position the UK as the leading location of choice for European HQs, elite global entrepreneurs and exceptional talent.

6. Help support £4.5 billion of investment in UK priority infrastructure projects.

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UKTI’s global presence

• UKTI teams identify business opportunities around the world. They support businesses throughout the UK.

• UKTI has more than 1,200 staff in over 100 overseas markets and around 400 people across UK regions, working locally to support UK businesses and overseas investors.

• The devolved administrations have their own trade teams, delivering services analogous to UKTI’s.

• Our advisers are overwhelmingly from the private sector, with experience in international trade/investment.

UKTI has more than

1,200 staff in over

100 overseas markets.

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Why invest in the UK? (1)

• A magnet for FDI: leading FDI destination in Europe.

• No. 1 for European headquarter operations.

• Internationally competitive location for tax. Corporation tax down to 21% in 2014. R&D tax credits.

• Top three universities in the world.

• 10% of the world’s pharmaceutical R&D funding.

• More than 100 science parks.

• Vibrant markets in advanced materials, aerospace and automotive.

• One of the largest and most diverse creative and digital industry sectors in the world.

• European centre for professional services and world’s leading global financial hub in London.

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Why invest in the UK? (2)

• One of the most open countries in the world for ease of doing business.

• Renowned for the value of its innovation and entrepreneurship

• A rich and diverse marketplace, with a population of over 60m consumers.

• A proven gateway to the EU and wider global market.

• Transparent legal and regulatory environment.

• Entrepreneurial culture.

• The top destination in Europe for inward investment.

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UK Government measures attracting inward investment

• Cutting corporation tax to 21% by 2014.

• Committed to remaining one of the most open countries in the world for ease of doing business.

• Major investment in education and training to create an more flexible and educated workforce.

• Introduction of the “Patent Box”: 10% tax rate for profits attributable to qualifying patents.

• The UK Government is actively promoting innovation through generous R&D tax allowances.

• Ongoing investment opportunities through the Life Sciences Investment Organisation, Tech City and other R&D ‘clusters’.

• Visas for entrepreneurs and investors.

• Cutting regulation and simplifying planning procedures.

Plans for

£250bn in infrastructure

investment

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Inward Investment - achievements

• In 2011-12 the UK secured:

• 1,406 investment projects,

• helping to create or safeguard

– 52,741 new jobs,

– 59,918 jobs safeguarded. - 0f these, UKTI helped to land 1,172

projects, generating 60,486 jobs. (Source: UKTI)

• Inward investment accounts for 40% of UK economic output

• April – December 2012, UK have attracted - 585 investment projects - Helping to create or safeguard 41,063

jobs. (source: Financial Times ltd 2013).

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Inward Investment – international data

Ernst & Young European Investment Monitor 2012 (narrower definition of FDI):• In 2011 the UK attracted 679 projects,

well ahead of our main European rivals – Germany with 597 and France 540.

2012 UN World Investment Report:

• UK is also top in Europe for accumulated stock of inward investment – US$£1,198 billion (2011), a 3% increase on 2010.

UNCTAD/ OECD FDI inflows:

• UK's performance has overall been positive during 2012 with an increase of 22% compared to 2011 – Global performance.

UK FDI

3%

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Other current investment priorities

• GREAT campaign – high profile international campaign supported by GREAT British brands and personalities;

• The Tech City Investment Organisation is committed to driving investment and growth in the Tech City area, helping make it Europe’s location of choice for digital technology companies and investors.

• the Life Science Investment Organisation is coordinating UK resources to support the delivery of higher value and quality inward investment initiatives in the sector;

• Entering new, high potential markets including the Gulf and Russia

• Replicating the success of LSIO with up to ten new sector programmes

• A graduate entrepreneurs campaign and visa to attract the brightest and best young entrepreneurs to the UK.

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UK Export Finance - overview

UK Export Finance supports exporters and investors by:

• insuring UK exporters against non-payment by their overseas buyers;

• helping overseas buyers to purchase goods and/or services from UK exporters by guaranteeing bank loans to finance those purchases;

• sharing credit risks with banks in order to assist exporters in the raising of tender and contract bonds, in accessing pre- and post-shipment working capital finance and in securing confirmations of letters of credit;

• insuring UK investors in overseas markets against political risks.

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UK Export Finance: short-term products

Made available in 2011 to fill any gaps in the support available from the private sector:

• Export Insurance Policy: credit insurance against specified commercial and political risks of not being paid under an export contract.

• Bond Support Scheme: provides support to banks issuing advance payment, progress payment or other contract bonds on behalf of UK exporters. 

• Export Working Capital Scheme: provides support to banks providing working capital loans to UK exporters.

• Foreign Exchange Credit Support Scheme: provides additional support to banks in respect of working capital facilities provided to exporters in consideration of the bank providing exporters with hedging protection against foreign exchange rate movements.

Raising awareness a priority: Export Finance Advisers have been located in UKTI regional offices to help businesses navigate the support available to them.

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UK defence and security sectors

• UK is 2nd most successful global defence exporter.

• £8.8bn defence exports in 2012, and 20% global market share over last 10 years.

• Security exports in 2012 were £2.7bn, up from £2.6bn in 2011 maintaining the UK as 6th largest global exporter, with a 4% share.

• Priority markets: Australia, Brazil, Canada, Europe/NATO/EU, India, Indonesia, Japan, Kuwait, Libya, Malaysia, Oman, Qatar, Saudi Arabia, South Korea, Thailand, Turkey and USA.

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£2.7bn security exports in

2012

£8.8bn defence exports in

2012

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UKTI DSO services

• Embedded serving military staff providing support and expertise.

• Specialist advice and support to the security sector (homeland security, police, fire and commercial security sector companies)

• Events and exhibitions.

• Key account management with prime UK suppliers.

• Specialist advice and information to SMEs from dedicated account managers.

• Market analysis of the global defence & security export markets.

UKTI DSO offers a great service. They always have their ear to the ground and know who to talk to.” Max Houghton Sales and Marketing Director at  WFEL.

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Other key initiatives (1)

• GREAT campaign – high profile international campaign supported by GREAT British brands and personalities.

• Headstart – new scheme to help UK SMEs into S E Asian markets (initially Singapore, Thailand and Indonesia).

• Export Week follow-up (12-16 November 2012); UKTI held over 100 events across the UK to provide practical advice on how to sell overseas.

• OpentoExport.com – a community where companies can collaborate with service providers to help take their business overseas. Launched in October 2012; powered by hibu.

• UKTI website ww.ukti.gov.uk - promotes UKTI events, business opportunities, country, sector, UK regional info 29k* customers registered for alerts.

• GOV.UK – Posts’ business-facing content

• UKTI Social media:

– Twitter 33k* followers.

– LinkedIn 20k* members.

– YouTube 1k* subscribers.

– plus Blog, flickr, Tumblr

• e-mail marketing - in-house system using CDMS data, quick & cost effective way of promoting UKTI events.

Contact UKTI’s Digital Team for info, guidance and training: ukti.webmaster@ukti.gsi.gov.uk,

T: +44 (0)20 7215 8777 *statistics taken on 18 June 2013

UKTI’s digital channels