THINK GLOBAL ACT LOCAL

MANUFACTURING IS AT THE CORE OF THE UK ECONOMY

Today, over

people in the UK workin manufacturing

2.6 MILLION 2.6 MILLION

£186.6 BILLION£186.6 BILLION

Almost half of the UK’s manufacturing exports come from five key sub sectors: mechanical and electrical equipment; chemicals; transport; metals; rubber, plastics and non-metallic minerals, accounting for

Getting insight from professionalservices companies with a local presence was the key issue for 83% of businesses seeking help with internationaldevelopment

The most prevalent approaches towardsinternational growth were: joint ventures, mergers and acquisitions and establishing independentoperations

Traditionally Europe has been the biggest market for UK businesses, and this is still the case – by 2020 the EU will account for around 17% ofglobal output

In relation to emerging markets, ease of doing business, quality management andpolitical-economic stability were important considerations

52% of manufacturers say that expansion hinges on the emerging markets

Having good decision makers to evaluate current and future risk and uncertainty of market opportunities

Entering a new market without countryspecific knowledge is a high risk strategy

Promoting knowledge, sharing internallyand learning from mistakes were regarded as key factors for growth

Where there is a mismatch between culture and strategy the likelihood of failure issignificantly increased

Those interviewed emphasised that international growth demands a need for the business to adaptto local cultures

The sector accounts for around 11% ofUK Gross Value Added and 54% of UK exports

11 %11 %

83%83%

54%54%

52%52%

But if UK manufacturers want to expand internationally, they must beresponsive and agile. Considering the following five key factors will help:

SUPPORT AND SEEKING HELPSUPPORT AND SEEKING HELP

ORGANISATIONAL DESIGN, CULTURE AND VALUESORGANISATIONAL DESIGN, CULTURE AND VALUES

GEOGRAPHYGEOGRAPHY

Anti-corruption legislation 29

Health and safety issues

25Export controls

29

25Product safety

21Strategic partnerships

21Tax

They were most likely to want advice on…

17%17%

3

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LEADERSHIP AND LEARNINGLEADERSHIP AND LEARNING

LOCAL KNOWLEDGE, CORRUPTION AND PROTECTING IP LOCAL KNOWLEDGE, CORRUPTION AND PROTECTING IP

#DLAPiper

1

As businesses grow internationally, so has the importance of protecting Intellectual Property (IP)

2

100% of businesses interviewed stated that they had been aware of corruption when operating internationally

3