Mid-sized firms target new trade routes after tariff chaos
A significant proportion of mid-sized businesses still expect to increase exports in the next year despite tariff uncertainty, according to a new survey.
BDO’s survey of 500 mid-sized business found almost two in five, or 37 per cent, expect to increase exports over the next year.
The findings also suggest business leaders have been planning for supply chain disruption and new international tariffs by building out new routes to markets in Asia, Africa and Australia.
Around 35 per cent of businesses are targetting more sales to Africa, while 38 and 30 per cent plan on increasing exports to Australia and Asia, respectively.
Europe remains a healthy market for UK mid-sized businesses, with 41 per cent planning more exports to the European Union (EU) through 2025.
“Although conditions remain challenging, the UK’s mid-sized businesses are highly ambitious and have their sights firmly set on driving growth,” Richard Austin, Partner at BDO, said.
“Generating £130bn in revenue from overseas trade alone last year, these businesses are the strongest engine for our economy.”
He added: “The forthcoming Small Business Strategy is one of many major opportunities for the government to provide targeted support for the mid-market, simplify regulation and enable mid-sized businesses to deliver their plans for growth – all of which will be vital to boosting our economy.”
Alongside tariffs, other pressures include delivery delays and a shortage of the skills needed to support the export industry.
Almost one in three businesses also cited low demand from customers as a “top challenge,” rising to 43 per cent among manufacturers.
“Despite these headwinds, mid-sized businesses are working to tackle the challenges they face and remain optimistic,” BDO concluded.
Prior to the government’s small strategy, which will be unveiled later this year, around 95 per cent said they were optimistic the announcements would benefit them.