Tag Archive for economy

UK Government in shock push for UK trade abroad. Very close to missing the point, sadly…

David Cameron, on part of his recent US tour, while not fully crediting our role in WWII, spared no time in ‘bigging up’ UK industry overseas, pledging to “reorientate” British foreign policy towards promoting UK trade.

Following the recent emergency budget by our new Chancellor and his pledge to make Britain “Open for business”, there has been scant detail, so far, as to how this will be achieved.

But this is a positive step, I’m sure you’ll agree. I’m a firm believer in giving people adequate time to do the things we hired (voted) them to do. “Why ‘hire’ them, otherwise?” …is my view.

Snap forward a month and cue newly installed Prime Minster, David Cameron on his first official trip to the USA, where hot dogs, American beers and tidy bedrooms were the lighthearted topics du jour.

In his new role as defender of the realm, well kind of, Mr Cameron met with a number of financial and business leaders in the US, and was keen to highlight the changes to the Foreign Office setup.  The main change being that Simon Fraser, formerly at the Department of Business, will be installed at the Foreign Office as permanent secretary to head up this new ‘pro-UK’ mandate.

Following a light lunch with New York City’s Mayor, Michael Bloomberg, Mr Cameron pledged: “I want to make sure that whenever any British minister, however junior, is meeting any counterpart, however junior or senior and for however short a time, they always have a very clear list of the commercial priorities we are trying to achieve, whether that is pushing forward British orders, attracting inward investment or promoting bilateral or unilateral trade talks.”

US-BRITAIN-CAMERON-BLOOMBERG

Cutting the mustard? David Cameron is treated to a hot dog by NYC Mayor, Michael Bloomberg.

Sounds very good on the face of things, and after all this is only one of his first official foreign engagements where the subject of foreign trade would, naturally, crop up.

However, it is also my wholehearted belief that the real emphasis on expanding UK trade should lie a lot closer to home – by giving incentives to UK PLC to reinvest and expand their operations to overseas markets, which will enable them to bridge our widening trade deficit and quicken our economic recovery.

In short, there are many things UK businesses could be doing themselves if our domestic environment allowed, or encouraged them to do.

My main hope with this news, is that it isn’t just talk for the sake of it. That these aren’t just cleverly engineered soundbytes in order to distance Cameron from any poodle-like comparisons to one of his predecessor’s – being “tough on trade”. That would be quite understandable, as the minutiae of the two-day visit – as well as its likely outcome – is being scrutinised by the world’s press, after all.

Not long ago, and without going into too much detail, I delivered this “I told you so” to WordPress and anyone who bothered to read my rant. This was after suffering a nasty bout of “about time, too”, which was  brought on by a round-about admission from, well, everyone, that exporting can help the economy.

Even though my criticisms may have been directed largely towards the previous Government, the common-sense approach we’re asking for isn’t a left vs right issue. I just hope the new coalition doesn’t show the same level of help for UK trade, but instead promotes UK export in a systematic way. Walking the talk, you might call it.

Here’s hoping, anyway. Over to you, Mr Cameron…

Do you think David Cameron’s shift in foreign policy will be positive for UK trade?

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KEEP CALM AND CARRY ON: Parliament hung for small businesses.

It was the mantra of the blitz spirit that typified Britishness during WWII, and yet that advice is the most sensible thing to do following the rise to power of our newly elected sense of uncertainty and justified frustration.

Keep_Calm_and_Carry_On_2

We must “KEEP CALM AND CARRY ON” while our economy and our collective patience endures a hung Parliament, and be  comforted by the fact that all of us are united in confusion about what this actually means for the direction of our country.

We must “KEEP CALM AND CARRY ON” because of one thing you can be sure;  that everybody involved in this political mess has all but abandoned the idea of championing UK exports, and I mean everybody – as businesses are, in exporting terms, well and truly having to do things on their own.

Having made enough noise about this issue for well over a year now, we didn’t plan on making too much more about the lack of export support from any of the main parties. However, now our political powers are locked in stalemate, perhaps it’s the right time to voice discontent and hope that someone produces a ‘trump card’ that can inspire a meaningful coalition Government.

I’m not talking about the whole “will he, won’t he debate“, or proportional representation, but a call from someone, anyone, to come up with something new that will allow us to focus on economic recovery. Don’t hold your breath – I mean it’s only been the main theme of the 2010 election campaigns.

Whether you agree with proportional representation or not, and I’m not stating if I do (or do not), you can’t help but marvel at the irony of not having such a thing in place. For David Cameron (who has stated he is dead against the idea) it would have avoided this whole mix-up, and not having it could give Nick Clegg one extra reason to side with Gordon Brown (who is apparently open to it). I digress.

However, one big certainty for UK business and anyone who is currently in employment is this: We still don’t know whether we’ll still have to pay the extra National Insurance contributions or not.

It’s a good thing we’re not trying to recover from recession or anything remotely as tricky as that, as some businesses might have to put vital expansion/employment plans on hold.

So, as you were then, Britain – Keep calm and carry on (regardless).

“Exports to lead recovery” – Hold the front page!

Politicians, financiers – get your coats and go home!  This morning I found that more than 12 months of ranting about the UK’s need to increase exports had been vindicated, after reading this, this, this and this, among other “news”.

Much of my ranting in 2009, despite appearing in print and online, seemed to fall on deaf ears with many ignoring me and some thinking I was mad to focus so much of my time on a relentless campaign for more export support.  So, I’m sorry to do this – but I told you so.

What took you so long, that you failed to see what I, along with a few others, saw in 2008 – that any economic recovery could only be achieved through exporting more?  We thought you didn’t care.

Why is it that only now our need to export more is suddenly being acknowledged by the mass media?  And I mean all of a sudden – notice that I linked to four news agencies saying exactly the same thing? Google news has over 70 articles that also do the “stuck record” thing this morning.  Hasn’t the horse already bolted a significant distance however?

Promoting UK Export - even a child could understand why we need it!

Promoting UK Export: Even a child could understand the benefits!

Apologies for my tone, but it’s as if somebody upon high deemed “the masses” weren’t ready for what is apparently, a revelation, until now. As if the truth may be too hard to swallow.

Take the widening trade deficit and the government’s need to cut public spending to reduce UK debt.

What were the chances that during the past year, somebody in Government or in the Bank of England, might have said at some point:

“Hey everyone, we have might a devalued currency, but people and businesses everywhere (i.e. overseas) are looking for the best deals. Why don’t we take advantage of this and give UK plc an incentive to export more? It would help balance our trade defecit and generate more tax revenues at the same – while we’re in recession! Say it quietly, but perhaps the Government could even afford to borrow a bit less.”

The chances were, unfortunately, nil.  Non existent. Even though it is proven that a weak pound increases UK exports without help.

However, this announcement (although I don’t think I should call old news or old ideas an announcement) might finally be the proverbial “kick” the powers that be need to incentivise UK businesses to increase their exports, and help repair our economy.

We’ve suggested a 10% corporation tax on new sales generated through exports and even Government guaranteed loans for viable firms looking to export (or expand). We’ve even launched a single-source exporting service for firms who haven’t done it before.

If only the powers that be had listened to what we’ve been saying for too long. They’d probably be having an easier time of it now.

It sounds like I’m gloating. I mean who hates being right, right? Actually, I do.

When it’s about this, I hate being right – because the implications of not acting to boost UK exports are far too costly in the long term.

On the plus side, at least nobody can accuse me of being mad anymore!

Budget for businesses: So what took so long, Darling?

In anticipation for Alistair Darling’s budget announcement, I sat at home startled at what Sunday’s evening TV news threw at me… “Banks to be forced to lend to businesses”.  At first I thought “good news, at last”, and I still do. However the finer details of today’s announcement might prove to disappoint, and I’ll tell you why…

Today’s budget included a doubling of the annual investment allowance, a £200m growth capital fund for SMEs, a £2.5bn one-off growth package for small businesses and the guarantee that Lloyds TSB and RBS will together lend at least £94bn to UK businesses.

Great! All of the above is needed, but unfortunately that’s been the case for far too long.

Growth to nowhere? Darling's budget lacked direction in my opinion.

Growth to nowhere? Darling's budget lacked detail.

Back in October 2008 we rallied Government to extend loan guarantees to small businesses. The banks, either through collective ignorance or in self-preservation, started to rescind credit lines that viable companies had previously thrived on. This forced many companies capable of repaying debt to go bust – or in our case, put vital expansion plans on hold. We also urged the Government to force banks to lend to companies that want to grow, even suggesting that a change in VAT accounting could increase short term liquidity.

The Government and the banks could have helped (and saved) many more businesses in this past year to grow, expand, and keep more people in employment. They could have, that is, if guaranteed (forced) lending had been in place about year ago.

Our, very valid, argument was that exporting was the only real way to ensure we address our widening trade deficit and get the UK out of recession. When you look at  how countries like Japan, whose exports almost doubled last month alone, are coping with recession – it’s quite embarrassing on the world stage.

So where in this budget are the incentives that UK businesses and the economy need for boosting exporting? How do we redress our increasing trade deficit to make sure we’re not buying more than we’re selling?

Therein lies the huge gap in this budget – there are no such incentives.

Lanscape Gardener, Tina Powell shows Alistair Darling how it's done with Lego (Image courtesy of Metro.co.uk)

Building blocks of the economy: SMEs could stand to benefit from increased lending and Government support outlined in the 2010/11 budget

Perhaps it has finally dawned on Mr Darling that increased business lending was desperately needed. The ongoing improvement in market conditions is creating new opportunities for businesses all the time, and businesses can use this protection to secure funds for reinvestment and hiring new staff – but nobody’s steering the boat – a point I made after the last pre-budget report.

However, today’s help comes, admittedly, as a nice surprise, but we’ve yet to see the finer details about about how the Government will distribute this new help, and how companies will be qualified for funding.

As the saying goes “To qualify for a loan you must first prove that you don’t need it.”

How true. In pursuit of securing funding, many businesses incur accountancy and quality assurance fees that go with the due diligence processes needed to qualify their needs and prove they are viable. That can often dissuade companies from applying for funding, as sometimes the extra cost simply isn’t worth it – that is, if you know where to look and who to ask for said funding.

So, I look forward to seeing how these extra measure set out in the budget will be carried out in practice.

Now, when we started this blog we said we wouldn’t use it as a political soapbox. We would instead hold true to our values, promoting common sense and best practices for businesses who want to expand with localization. We also said we’d only mention the economy whenever appropriate for our audience.

Judging by the headline of this article, and indeed the opening paragraph, you could be forgiven for thinking that isn’t the case here, but you’d be wrong. My tone simply stems from my frustration about the lack of help afforded to businesses in the worst recession in over 60 years – that and the annoying little fact that we’ve been asking for this kind of help for over a year, without success.

So, to whoever is promising to help UK industry this week or indeed at the time the next Parliament is formed, may I please ask that you put our money where your mouth is – or just where businesses can get to it?

And yes, by that I do mean our money.

Come fly with me..out of the recession

After the economic struggle of the last two years and with travel and tourism being one of the worst affected industries, we are only just beginning to see a rise from the ashes, just in time for British Tourism Week, which is from 15th – 21st March.

With summer fast approaching and consumers jumping back into holiday mode, now is the time to be communicating with your international audience, as they turn to the world wide web in search of the best package deals, flights, hotel bookings and car hire.

As frugal consumers (and let’s face it, who isn’t one these days?) from every region of the world start to look for the best deals, the UK, as the 6th most popular holiday destination worldwide, is  fast becoming a very popular prospect indeed. According to visitbritain.org, over 40 million visitors to the UK spend over £16 billion between them each year.

With the serious decline in the value of the pound there’s no reason why those figures can’t rise in a similar fashion. However, less people are in fact travelling to Britain – the number of people travelling to Britain (on inbound holiday or short-stay flights, at least) today is almost 2% less than this time last year. This was compounded, or perhaps caused, by an annual 4% drop in global tourism last year, which makes the market more competitive than ever.

To be Frank, the tourism industry could help itself with localization

To be Frank (sorry), the tourism industry could help itself with localization

Now, you might be led to believe that attracting new customers in the tourism industry has always involved investing in localization – but I wouldn’t be so sure that this is the case.

In fact, many online industry operators still only operate in a single language.

It’s crucial to speak to existing and potential customers in their own tongue. The Common Sense Advisory revealed that international customers are four times more likely to buy from a local language site.

At Applied Language Solutions, we focus heavily on supporting the tourism sector with localization services.

We have teams of specialist linguists covering a wide variety of languages who are both experienced in the industry, online marketing and, crucially, Search Engine Optimisation (SEO).

As well as offering quality localisation, delivering your messages into any language and country, we’ve added the “kill two birds with one stone” service, by adding localized SEO services to ensure more visitors are attracted to your offers in the first place.

With people worldwide warming to the idea of holidays and trips abroad, the time is right to localize your site and capture audiences that speak different languages.

Likewise, if you want to attract new visitors to your hotel, golf course or even your town (anywhere that a tourist might be interested in visiting) – get in touch and we can open your business up to new audiences straight away.

15.5 ways to fail miserably doing business in other countries

By Greg Rosner

PhotoWARNING: Do not follow this advice! This blog entry is intended to be funny, by explaining the opposite of what you should do to succeed. The point here is to exaggerate the mindset of approaching translation as an afterthought rather than as part of your global business strategy.

  1. Got employees overseas? Expect them to read and write English fluently.
  2. Do a business trip – once every decade.
  3. If you do visit, keep the business trip short and your meetings 20 minutes max. Forget the karaoke bar, the dinners, tell them what you want them to do and then leave.
  4. If you can’t pronounce their real names, give them nicknames like “Bob”, or “Jim”.
  5. If you don’t like their food, complain about it and describe what real food is like.
  6. Dictate the terms of your business to the locals. Expect compliance.
  7. Make no investment in the country. Customers will buy from you no matter what language they speak.
  8. Product literature translations? Don’t bother. If they can’t read English they probably don’t want your product.
  9. Keep your web site in English. (Even 3 year olds in America speak English – so should they)
  10. Ignore local law.
  11. Don’t hire a local partner.
  12. Offer your appraisal of their country’s politics and popular religion.
  13. Make fun of things in their country you don’t understand.
  14. Invite them to conference calls after lunch, say, at 2:00pm Pacific Standard Time, no matter where in the world they might be dialing in from.
  15. Critique their local government.

15.5  Try to change their culture.

UK exits recession, but keep the bubbly on ice!

 

It’s official!  The UK economy has at long last, exited recession and returned to growth…just.

Now your first instinct might be to quip, as I did, “Yes but the economy only grew by a paltry amount, didn’t it?” Yes, this is true.

Although it wasn’t quite this bad, it didn’t grow by much more, either (0.1% in fact).

    About boody time, too! The UK is the last of the G20 nations to exit recession

About time too! The UK economy is the last of the G20 nations to exit recession

I’ve been immersed in the news since this was announced, and I can’t help but think that, while some are predicting another slip back into negative growth and others are getting a little carried away, we’re still missing the point – exporting.

As someone who has successfully taken a business to other shores, I can testify to the stability exporting can bring and to the endless growth opportunities it presents.

Since the recession hit and in light of the news this week, I think it is unbelievable that the government hasn’t been promoting exporting as though the country’s future depends on it, because in my opinion it does. Clearly.

In short, exporting is a simple way to navigate the economy well clear of recession – and almost any company can do it.

Now, I don’t mean to come across a bit Rafa Benitez, but let’s look at a few facts

1) All is not as it seems: Our “recovery” was aided by the Government backed car-scrappage scheme. It was a well thought out mechanism to encourage spending (and lending, if you were deemed worthy enough to qualify) within the automotive industry and it has proven to be very popular with the Great British punter.

So, good in principle and in practice, which makes it well worth pointing out, but not for reasons you might think. There is one glaring omission from the much-lauded exploits of the scheme – we don’t actually make the cars we’re selling anymore.

This begs the question “where has all this money we’ve been spending actually gone?” The answer is “overseas”.

You wouldn’t run a household, or indeed a business by spending more than you earn.

It is the same basic principle with import and export – our trade deficit cannot sustain our economy based on lending.

 

2) The Double Dip: There is still “a lot of uncertainty” about what our triumphant 0.1% means in the long-term. According to some sources, we may find ourselves back in recession again before the end of the year.

Double-dip recession: Not this nice!

Double-dip recession: Not this nice!

If that happens, it will present new challenges that exporting could help to solve – provided companies are given adequate support to boost UK exports, that is.

I believe Government should be incentivising companies to export more than they are now, by introducing reduced sales tax on revenues generated through exporting.

Just think of how many companies might just try exporting for the first time if we introduced something like that.

3) To state the obvious: Germany and China are the league leaders in the global economic recovery. We are one of the last and only scraped our way out of recession on a technicality.

In fact, China actually never entered recession – please bear that in mind as you read on.

What a strange coincidence that China, followed by Germany, now leads the world in exporting.

Actually, it is no coincidence.  Exporting is something that the UK has been lacking for far too long and is the single reason that we are the last of the G20 countries to emerge from recession – something this article seems to have missed altogether.

To summarise:

It has been said by the Prime Minister, that our economic contingency plans are “leading the rest of the world in taking us out of recession.” This, while offering no practical support for SMEs, the “lifeblood” of our economy, to do the dirty work of pulling us out of the mire.

However, when you see the economies of other G20 nations soaring compared to ours, actually we’re not leading anyone out of anything, Mr Brown.

UK recession ‘almost’ over. Does anybody care?

British headlines this week cover all manner of things, from Simon Cowell quitting American Idol, to the grit shortage – but one thing I’ve noticed is that the media don’t seem to be very interested in the UK being almost out of recession.

Why is that, exactly – perhaps it’s another false dawn (we’ve had a few of these already), or maybe it’s because we were resigned to the fact that a recovery was always going to take longer here in the UK?

Either scenario makes for a pretty sad state of affairs if you think about it.

World leaders: China and Germany, in export terms.

World leaders: China and Germany, at least in exporting, are enjoying the good life.

For a start, China has just emerged as the world’s largest exporter, overtaking Germany’s long-standing reign. Pretty big news then…

Well actually, no. Not here in the UK. And why is that, exactly? Is our attitude to new languages really that bad? I would guess not, but rather because of one ‘scary’ word – exporting.

Here in the UK we seem to be inherently ashamed of discussing the reason for China and Germany’s economic success on the world stage (exporting) since it’s something that, comparatively, we as a nation don’t do a great deal of.

Now, as a provider of language services, which enables other companies to trade internationally, it seems this is a very convenient argument for us to make – that exporting will help us out of recession. Too convenient, even.

However, what it does do is validate our place to make such arguments, which have been made and proven time and time again.

We see our customers doing well on a daily basis because they have taken the decision to invest in practical, cost effective measures that gets them exporting. Even if it’s just simple things like landing pages in other languages, with email translation services done on an ad hoc basis, exporting need never be something to fear simply because budget is an issue, or even (say it quietly) because language is a big concern.

We’ve said before that Government should be incentivising smaller businesses to export more as other governments have done, helping to redress their trade and budget deficits.

With a general election just around the corner, this could be the time for all parties to showcase ideas – and actions – that will stimulate natural, sustainable growth in our economy.

The UK could easily be one of these countries that lead exporting. Unfortunately however, it seems like our prediction is becoming a reality and that we may be just about to miss out on the export boat, which is being steered by the likes of China and Germany.

Bingo! How Pre-Budget Report forgets businesses

Stopping short of jumping on any bandwagons, or just bashing the Chancellor for countless ‘Darlingisms’ that have been used to disguise the what would seem like a lack of help for just about everyone, I have to say that I’m not overly impressed with this year’s pre-budget report, since there wasn’t a great deal in it. But I was surprised…

Darling

For too long, companies like ours, along with the likes of Google, Royal Mail, HSBC, Alibaba.com and the Institute of Export have been beating the exporting ‘drum’ – to notable success, with our partnership and innovations we’ve developed in 2009. However, at a time when the nation is fast approaching £200bn in the red, you would like to think that the government would make a priority out of boosting UK exports. Not so, if today’s pre-budget report is anything to go by.

If you take a closer look at what measures in the pre-budget report would affect UK exports, there were some absences that simply shouldn’t have gone unnoticed. Well, they shouldn’t if you’re like me and you believe export is the only credible way to redress our increasing trade deficit, that is.

Two fat ladies... nothing to do with Bingo!

Two fat ladies - Nothing to do with Bingo.

For all the bingo-tax reductions, bank bonus super tax hikes and the growth-promoting rhetoric, I have to say I was very disappointed not to see anything that could have an instant impact upon unemployment and tackling the problem of balancing the books.

I would have liked to have seen more initiatives and incentives for SMEs to dip their toe, at the very least, in overseas markets. There is so much opportunity out there and it’s a shame that many companies aren’t given encouragement to take advantage of that.

Simple measures, such as a reduced (10%?) corporation tax on revenues generated from export sales would give businesses the largest incentive to start exporting. Other measures, like a six-month NI holiday for employers on new employees would encourage firms to create more jobs. These are the things that were plainly missing from what was a fairly flat, relatively inoffensive and meaningless announcement.

Today’s pre-budget report sets out measures that are by no means drastic, nor do most of them come as a great shock. However, the lack of focus on growth, notably since we’re in what is now an “exclusive” recession club, is very surprising to me – and frustrating. It seems, for now at least, if firms are to grow, they’re going to have to do it on their own.

I’ve said many times before that the UK could be missing out on the exporting boat – I just hope next year won’t be too late.

End of 2009 success, optimism for 2010

It’s December and time for the obligatory reflections on the past year that (if you’re like me) you can’t help but mention. With this in mind, it gives me great pleasure to announce that Applied Language Solutions has, for the second year running, made it into the Sunday Times Virgin Fast Track 100.

The Fast Track 100 ranks the top 100 fastest growing UK companies by sustained year on year sales growth. Being one of these top 100 companies is a very prestigious honour indeed, and I would like to say ‘thank you’ in acknowledgement of the hard work put in by all ALS staff throughout 2009 that has delivered this success and others.

The Sunday Times Fast Track 100 is sponsored by Virgin
The Sunday Times Fast Track 100 is sponsored by Sir Richard Branson’s Virgin Group

This past year has of course been a particularly difficult time for businesses and to make the top 100 again is a great achievement in itself, regardless of the harsh market conditions we have all faced. Being the only language service provider ever to feature in the Fast Track is, of course, also very pleasing indeed.

That said, it’s the easiest thing for companies in any industry to boast about any successes they’ve achieved when others are still struggling, especially in difficult times – but 2009 has been anything but easy for ALS.

In January we noticed many of our customers had tighter budgets and needed more from us to make their budgets work that much harder. So, we set about putting in place a series of measures that would deliver more for less and some key initiatives to help our customers still deliver on their language priorities while times were hard.

What I believe helped to determine our success in 2009 are things you will hopefully recognise (if you’ve ever used our services or spoken to any of our staff) as inherent in our culture – our positivity and ‘can do’ attitude.

I’ve always tried to emphasise positivity as a major factor in what sets us apart from other language service providers – no more so than in the past twelve months. Addressing the recession in this way, when other companies have banned the ‘R’ word – as if the challenge would go away if ignored for long enough – is proving to be the healthiest way of working.

I believe that in having the right approach, with our ‘can do’ attitude, we are now beginning to seeing the rewards of our hard work – but we’re not out of the woods just yet.

2010 promises to be just as testing, if not more so, than 2009. With recovery likely to continue slowly, companies and Governments need to continue to make every penny count and ALS, as a service provider, will continue to come up with new ways to make that happen.

Opportunity arises out of adversity and in the case of this recession I believe that opportunity is in export. I have been preaching the virtues of this for some time and through Export Box we have helped many companies achieve that opportunity. In a bid to practice what we preach we will also be opening in several new markets in 2010 to better support our global customers in local markets, as well as attracting new customers.

Ava Mary Wheeldon
Ava Mary Wheeldon

On a personal note, 2009 was a very special year for my wife Marie Claire and I, as we proudly welcomed Ava, our lovely baby daughter into the world (pictured), who’s just about the best thing ever (I know, I’m biased!). Being a parent obviously changes your outlook on life and your priorities, not to mention your sleeping pattern, but I just thought I’d quickly indulge and share our good news with you also!

Anyway, what I’d really like to do is wish you all a very happy festive period and the very, very best for 2010.