Transcript UKTI Corporate Presentation July 2013

Nick Archer
Director, Africa, the Middle East,
Russia, Turkey and Central Asia |
Trade |
16 October 2013
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.
2
UKTI’s mission
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.
3
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 highvalue opportunities (major projects) overseas
for FY2013-14.
4
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.
5
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.
UKTI supported over
£800m
of major project wins in
2011-12.
30% in
two years*
6
UKTI trade services (1)
UKTI can give advice on whether a firm is
ready to export by:
• 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;
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
• setting up meetings;
• and generally helping to make business
happen.
7
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.
8
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
9
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
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.
10
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
11
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.
12
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.
13
Support for high-growth and innovative SMEs
Three new Units have been established in UKTI
to support high-growth and innovative SMEs.
• Science & Innovation Unit
UKTI’s focal point for relationships with science and
innovation bodies across Government and
internationally.
• Technology Partnership Unit
TPU’s role is to link high-growth technology-focused
SMEs with global value chains.
• Venture Capital Unit
The VC Unit has been established to link up highgrowth and innovative SMEs with overseas sources of
venture capital.
14
How UKTI is helping mid-sized businesses
•
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 MSBfocused 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.
15
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.
16
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.
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
18
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-togovernment relationships which underpin
commercial campaigns in these sectors.
19
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.
20
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.
UKTI has more than
1,200
staff in over
100
overseas markets.
• Our advisers are overwhelmingly from the
private sector, with experience in international
trade/investment.
21
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.
22
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.
23
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
24
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).
25
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.
UK FDI
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.
3%
UNCTAD/ OECD FDI inflows:
• UK's performance has overall been positive
during 2012 with an increase of 22%
compared to 2011 – Global performance.
26
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.
27
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.
28
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.
29
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.
£2.7bn
security exports in
2012
£8.8bn
defence exports in
2012
30
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.
31
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.
32
UKTI’s digital channels
•
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: [email protected],
T: +44 (0)20 7215 8777
*statistics taken on 18 June 2013