According to a latest survey by the Department of Business & Trade, Britain’s exporters are increasingly struggling to seize international opportunities, with only 18% of businesses now considering themselves export experts, a sharp decline from 24% last year. This drop in expertise, the lowest since the UK’s Trade and Co-operation Agreement with the EU in 2021, reflects a growing knowledge gap post-Brexit, leaving businesses less equipped to navigate the complexities of global trade.

As calls for enhanced government support grow, many businesses remain unaware of available resources, with few actively pursuing new export opportunities. The E-Commerce Trade Commission has emphasised the urgent need for better export support, particularly for small businesses and women-led firms, to drive economic growth. Without this, the UK risks further economic stagnation.

This lack of export expertise is increasingly linked to the rising number of insolvencies in the UK market. Small and mid-sized firms, in particular, are struggling to grow without expanding into international markets. The post-Brexit trade landscape has left many businesses unable to adapt, making them more vulnerable to domestic financial pressures like rising costs, supply chain disruptions, and market saturation. As a result, these challenges are pushing many firms toward insolvency.

Amid this rise in insolvencies, improving export support and offering better digital trade tools could provide a critical lifeline. By enabling businesses to tap into global markets, they can alleviate domestic pressures, generate new revenue streams, and regain long-term financial stability.

Why is this important for distressed business buyers?

Struggling firms often have strong customer bases and market positioning, making them attractive targets for those who can enhance export strategies and access global markets. Additionally, the opportunity for industry consolidation, coupled with potential government support for export improvements, offers a chance to turn around undervalued businesses and capitalise on sector-specific growth prospects. This environment creates a lucrative opportunity to acquire distressed companies, leverage their untapped potential, and achieve high returns on investment. 

Which industries will this impact the most?

The decline in export expertise and the rising insolvency rates are likely to have the greatest impact on the following industries:

Manufacturing: The UK’s manufacturing sector, which heavily relies on exports, will face significant challenges. Without strong export strategies, manufacturers, particularly in the automotive, machinery, and equipment sectors, may struggle to offset declining domestic demand.

Tech and Electronics: Many UK-based tech companies, especially small and mid-sized firms, rely on international markets for growth. As export knowledge deteriorates, these firms could miss out on critical overseas opportunities, reducing their competitiveness globally.

Retail and E-Commerce: Retailers and e-commerce businesses that have traditionally relied on exports for revenue growth will feel the squeeze. With calls for better support in digital trade tools, those lacking the infrastructure to manage global logistics and compliance could face stagnation.

Agriculture and Food: The agriculture and food industries, which have been hit hard post-Brexit due to new trade barriers, could see further strain. Exporting is key to reaching markets outside the UK, and without robust strategies, these sectors could see more insolvencies.

Construction and Infrastructure: Though not traditionally seen as export-heavy, some construction firms dealing with international projects or importing/exporting materials will be affected. Reduced exports and rising costs will further exacerbate financial pressures in a sector already vulnerable to insolvencies.

Textiles and Apparel: Fashion and textile businesses, particularly SMEs, will be affected as many rely on overseas markets. The loss of export expertise could leave them struggling to meet international demand or expand into new markets.

The path to success and high rewards is clear for those ready to seize it. Business buyers who can strategically acquire and revitalise these businesses stand to benefit significantly. By seizing these opportunities, they can not only access undervalued assets and strong customer bases but also tap into untapped international markets, potentially revitalising these companies with improved export strategies and digital trade tools. This approach can drive substantial growth, boost profitability, and help business owners achieve their end-of-year targets with impressive returns.