Byline: KATIE TAYLOR
FOR years the strength of sterling has hurt British exporters, making their goods more expensive overseas.
But with the pound now weaker, cas n they expect a reversal of their fortunes? Figures from the Office for National Statistics show that exports from the UK increased by 2.5 per cent in the quarter from June to August.
Phil Orford, chief executive of the Forum of Private Business, says that while some members are reporting sales growth in markets such as South America, they are also finding this is offset by slow demand in other key markets, particularly the US.
'For some companies which export goods, for example those producing equipment for the construction industry, the lack of demand as overseas firms struggle to access finance means that where many exporters should be experiencing a boom in sales they are not,' says Orford.
Science in Sport, based in Blackburn, Lancashire, makes nutritional drinks and health products for athletes. The firm employs 40 people, turns over just under ?10 million a year and is the official nutritional sponsor to the Great Britain cycling team.
Its energy products drew interest from many other athletes at last month's Olympic Games in Beijing.
Director Tim Lawson says: 'About 12 per cent of our sales come from exports, mainly to European countries such as Holland, Spain and Italy, and we would like to export more.
'Our products are cheaper to buy overseas, but the cost of raw ingredients is higher and consumers are more cautious, so we haven't really gained.' Earlier this year the company planned to launch into the huge US market, but when the dollar weakened its plans were put on hold.
Lawson says: 'We are a sports business, not currency speculators, and the fluctuations make it hard to plan.
It's frustrating as we know a high-profile event such as the Olympics has generated global interest in our products.'
The Institute of Export has launched a scheme to help firms trade abroad. The charity's chairwoman Lesley Batchelor suggests two main strategies for managing shifts in exchange rates - maintaining bank accounts in the currencies you are active in as a cushion against further falls in sterling and adapting supply chains to take advantage of fluctuations.
Batchelor says: 'The key lies in managing risk and being aware of short-term cash flow problems caused by shifts in exchange rates.
'Currency changes daily, but that shouldn't be a deterrent to making export plans.
Find out all you can about your market, freight and shipping costs, distribution and cultural factors before you start.'
Government body UK Trade & Investment insists there is continued strong interest in export markets from firms of all sizes, in both service and manufacturing.
A spokesman says: 'Our clients tell us that selling into overseas markets has let them achieve a level of growth not otherwise possible and reduce the risk of dependence on a single or small market.'
