The number of businesses introducing ‘intelligent importing’ is on the rise helping companies to compete in the global marketplace, according to a Midlands international trade expert.
Nicole Howarth, managing director of award-winning shipping company Global Freight, said many of her clients’ current overseas trade activity mirrored the findings of the recent Importing for Export Success report.
The research, carried out by HSBC Bank, found that importing component parts was helping UK businesses succeed at the higher value-added end of the global supply chain.
It forecasts that 50 per cent of the UK’s total export growth to 2030 will be driven by two sectors – industrial machinery and transport equipment. It shows these two sectors will also account for over 30 per cent of the growth in imports by 2030.
Manufacturing imports are coming from an increasing range of foreign suppliers while British businesses focus their efforts on adding value to semi-finished products before exporting them.
Mrs Howarth said: “Imports are often seen as the enemy of domestic economic growth, but many UK businesses and the overall economy are actually benefiting from an increased level of imports, not only because they can boost efficiency and cut unnecessary cost but ultimately because they can drive exports.
“Alan Keir, the chief executive of HSBC, said the report celebrates businesses which are ’embracing intelligent importing’ and highlights the need to continually innovate to stay ahead. But what the report also does is demonstrate the importance of two-way international trade in a positive way.
“Although we work with companies across the world, the majority of our customers are UK based and we are spotting the same trend for increased imports, especially among our manufacturing clients.
“One of our Midlands-based customers is currently importing around 15 per cent of its product, giving the company the competitive edge to gain new exports to New Zealand, the Falkland Islands and Chile.”
The Importing for Export Success report showed that between six per cent and 12 per cent of the increase in UK manufacturing productivity between 1998 and 2008 can be accounted for by an increase in imports as the world went through a period of rapid globalisation. Even after these gains, the report forecasts that between 4 per cent and 7 per cent of the increase in UK manufacturing productivity over the next 10 years will be facilitated by increased imports of intermediate goods.