With more than 50 years experience of manufacturing under our belts Taylor is a household name in the UK, supplying over 80% of the UK’s local authorities with steel waste containers and urban recycling solutions.
Since the official launch of our export programme, which saw Trade Minister, Lord Green visit our 20-acre site in Worcestershire, Taylor has now become an internationally recognised brand, too.
After a number of approaches over the last few years we have now generated significant export sales to Africa, the Middle East and South East Asia. In fact, with such a high market share in the UK, export now represents our key route to continued growth.
UKTI has proved to be a fantastic resource forTaylor over the last few years. We have used its Overseas Market Introduction Service (OMIS) for gaining key market knowledge prior to visiting new territories, and have received support in setting up introductory meetings with prospective clients and partners. In addition, having the opportunity to work closely with UKTI via the British Embassy for the first 12 months strengthened our launch into Kuwait.
Although by no means experts, we have gained tremendous experience over the last few years and the recent Export Week provided an ideal opportunity for us to share our lessons and tips with fellow SME manufacturers. Here are a few things we have learned along the way:
1. Firstly, be proud of your British credentials. TheUK is broadly viewed as a high-quality source of manufactured products and, consequently, commands a premium on the world stage.
2. UKTI offers SMEs superb support for overseas market information (OMIS reports etc) and can also help with introductions; these can range from fully resourced inward trade missions to specific target introductions.
3. Know your products’ strengths and weaknesses and always consider performance in new markets. We invested significantly in test equipment, which enabled us to simulate the extreme climatic conditions our products would be exposed to. Poor performing products seldom get a second chance in new markets and can really damage a brand.
4. Transport costs can win or lose contracts. In 2007, our core 1,100ltr product could be shipped in batches of 84 using a 40” high cube sea container. With minor design changes to the form, we were able to re-tool a container with improved robustness now capable of being shipped in batches of 147 in the same size container – a 75% improvement.
5. Use desktop analysis to filter and identify markets which best fit your product and service USPs. Office-based analysis can save wasting thousands of pounds spent visiting prospective markets before honing down.
6. Pick your target markets and time entry appropriately. Just as some markets are too small, some markets are too large. For Taylorto move into a BRIC economy, we would almost certainly need to set up a JV or wholly owned operation in the territory, as we couldn’t economically support demand via export. During early stage export growth, such a move would be a huge risk and drain on resources.
7. Try to ensure contracts fall under the jurisdiction of UK courts. In the event of litigation, this is highly advantageous to UK companies.
8. Use letters of credit to ensure payment. In some cases, it may be necessary to request cleared funds before shipment, particularly with new customers from high-risk economies.
9. The web is a great tool - so use it! Over time,Taylor has developed its website from a UK centric portal to a multi-lingual site that can offer help, advice and commerce to a much larger audience. Our site currently supports Mandarin, Arabic, Spanish and Portuguese.
10. Recognise and respect overseas cultures. During our first large export sale to a country within theMiddle East we foolishly timed the arrival of our products during Ramadan – big mistake. Our product was stuck at the dock accruing demurrage charges during the festival, engineers were unable to work and, of course, no food or drink until sundown!
11. Similarly, relationships matter particularly when dealing with different cultures. Take time to learn greetings and always be courteous to your customer.
12. Be aware of import tariffs as these can effectively lockout your products.
13. Be in it for the long haul. An overseas pipeline can take years to build. Whether selling online, face-to-face or through an agent / distributor, building a brand overseas takes, time, belief and sometimes blind faith.
14. Be prepared to take chances and follow your gut. Time and time again, we have achieved results from market opportunities that were opportunistic rather than the result of exhaustive research.
15. Last but not least, be prepared to get some air miles!