While the United Kingdom is one of the largest economies in the world, it actually only makes up 1% of the total global population. And with reports indicating that just one in five British SMEs export goods and services, significant growth opportunities are being left on the table. According to the CBI’s 2017 “SME Trends Survey”, 22% of manufacturing SMEs’ domestic orders were down; it has therefore never been more important for manufacturers in the UK to develop and implement an export strategy, to ensure not only growth but also access to global markets post Brexit.
Furthermore, with recent changes in legislation such as the implementation of the sugar tax, and changing consumer behaviour towards non-renewable materials, manufacturers in the UK are being forced to shift their processes and operations to comply with the new guidelines. Ultimately, this means they need to look further afield and target the 99% of markets available worldwide to maximise the value of their assets.
In a globalised world that is increasingly connected, manufacturers are able to reach previously untouched niche markets and audiences globally. As a result, an asset, which has reached the end of its useful life in the UK, can now find a home within the international markets.
The key to making the most of the opportunities offered by gaining access to international markets is implementing an asset management strategy at the core of business operations which acts as a platform for facilitating relationships between buyers and sellers.
Whilst assets are often unloaded at times of cash-flow need, this is rarely the best way to get best value. Ingraining asset management in day-to-day operations can maximise the return and delivery of business objectives.
We believe that selling assets through business-to-business international online asset management systems and methods will enable manufacturers, in particular, to react quicker to the changing market conditions and identify opportunities that already exist for their machinery.
Expanding your horizons
At Troostwijk Asset Management, we have over 90 years of experience connecting sellers to niche markets across 127 nations with 18 operational facilities around Europe. We are the biggest industrial online auctioneer in Europe, and our team believes everything has value. We guide businesses in making smart, long-term investment decisions for their assets, and spotting the right value and the right markets worldwide to ensure swift completion.
Our data shows that around 70% of all assets sold through our unique platform are exported internationally, so the opportunities for UK manufacturers to benefit from accessing the 99% are significant.
Recently we matched one of our clients, a UK-based bakery that was looking to offload a crumpet assembly line, with both a domestic and international buyer. As part of the asset management service, our team of consultants carefully analysed which market the crumpets could appeal to most. In this case, we successfully sold the asset to customers in the UK and sent two more to New Zealand. As a result, our client was able to access an international market that was previously out of their reach, meaning they increased the value of their end of life assets.
Completing the puzzle
Whilst UK manufacturers have continued to prosper even during periods of significant economic uncertainty, it is key that they find new opportunities, particularly in a post-Brexit Britain, by accessing the remaining 99% of markets available worldwide.
By enlisting an asset management specialist to guide them in making smart and long-term decisions, manufacturers can take the first step to reach international markets and maximise the value of their end of life assets.