An initiative to help firms in Wales export for the first time has been launched by the Welsh Government.
Its new exporters programme will support companies who have either never exported before or have exported intermittently.
Ten companies from a range of sectors across Wales are being recruited to the programme, which will last around 10 months. They will receive support to develop their capacity and capability for exporting, helping them to become regular exporters.
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The support will be focused on exporting to the Republic of Ireland initially, which will act as a starter market for the companies taking part. It will include a visit to the market, where companies will meet potential business contacts, with support from the Welsh Government’s Dublin Office. The programme will run on an annual basis.
In 2020, firms in Wales exported £13.4bn worth of goods to markets across the world. Germany was the largest export market, accounting for £2.2bn (16%) of exports. France was the second-largest export market, accounting for £1.8bn (13.7%), followed by the USA, with £1.8bn (13.4%) and the Republic of Ireland with £1.2bn (8.8%).
Economy Minister Vaughan Gething said: “Wales has a long and proud history as an outward-looking trading nation. From the coal that helped power the industrial revolution in the 18th and 19th centuries, to high-tech computer chips that power our smartphones and other electronic devices today, the products we export from Wales are used by people around the world.
“As part of our ambitious programme for government for the next five years, we want to support Welsh businesses to find new export markets and create new green jobs in the sustainable green industries of tomorrow.
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“Our export action plan is the most ambitious and comprehensive programme of export support ever put in place in Wales. As part of that plan, the new exporter programme is designed to help companies who either have never exported before, or have done so on a piecemeal basis, to find those crucial new export markets to sell even more of Wales’ first-class products and services to more people across the globe.
“This is part of our mission to build a Wales with a prosperous, fair, green economy.”
Cardiff-based Object Matrix, which provides hybrid cloud storage solutions, principally to media organisations, is a leading exporter in Wales. Initially focused on the domestic market when founded in 2003, with an explosion in video content creation and distribution, it now exports to more than 30 markets which generate more than half of its sales.
Nick Pearce-Tomenius, co-founder and sales and marketing director at Object Matrix, said: “Exporting has been vital to expanding our company’s success and services worldwide. The support from Welsh Government has helped us to achieve our export success.
“Before the idea of exporting our products and services became a reality we had to start locally before we could think globally. Once we successfully accomplished that aspect of our business, we were able to take things to the next level. I firmly believe that if you can sell your product in Wales, you can sell your product anywhere.”
Ben Francis, FSB Wales policy chairman, said: “We’re pleased to see this initiative to help Welsh businesses exploit new markets. We know that Wales’ business community is eager to look for new prospects internationally and it’s great to see Welsh Government supporting this ambition.
“FSB Wales has for some time called on Welsh Government to take additional steps to support Welsh businesses to explore new markets and create new opportunities abroad. We would hope to see Welsh Government ensure that Wales’ smaller businesses are given the opportunity to engage in this pilot scheme.
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“FSB Wales has called on Welsh Government to go one step further and empower a new arm’s-length organisation to support Welsh businesses to trade abroad, plan to exploit new opportunities and take full advantage of Wales’ international offices.”
Moreover, new research from professional advisory firm Grant Thornton shows a growing appetite among mid-sized firms in Wales to export.
It found that almost two-thirds (65%) are expecting to export the same or more to the eurozone over the next 12 months compared to pre-pandemic.
The majority (51%) of mid-sized firms (defined as having annual revenues from £50m to £500m) also believe that ‘Brand Britain’ is a particular advantage when venturing into new international markets.
While Brexit posed a level of uncertainty to many businesses at the start of the year, most (65%) of those surveyed believe that Brexit has not had a negative impact. However, the transition has not come without its challenges. The four biggest impacts felt from Brexit in Wales’ mid-market sector over the past six months are: trade compliance issues (45%); Setting up new overseas operations (41%): VAT compliance issues (35%) and immigration and people mobility challenges (33%).
Jonathan Riley, practice leader for Grant Thornton’s Cardiff-based team, said: “The last year has presented huge uncertainty for businesses of all sizes, with Brexit and the pandemic creating an ever-changing operating environment which has been extremely difficult to navigate. But mid-sized businesses in Wales have proven their resilience and it is clear from our research that, despite the challenges posed, many are feeling more positive about the future than first feared.”