Shropshire expert warns manufacturing companies not to rely on European markets
With European leaders failing to find a lasting solution to the Eurozone crisis, and Britain sinking deeper every day into a double dip recession, a leading Shropshire based business consultant has warned that British manufacturing companies should cease their heavy reliance on European markets and look further afield.
Mark Harris, managing director of The Business Company near Shrewsbury, believes the future for manufacturers lies in the as yet untapped markets of the Middle East rather than the more widely acknowledged Far Eastern lands of spectacular growth.
“From a strategic perspective reliance on European markets is looking increasingly risky,” says Harris, “which means manufacturers must look at other markets that are growing. It is true that the economic cycle in the Far East has grown massively over the past generation but, as I have discovered first hand, there are equally good if not better opportunities in the Middle East, an area frequently passed over by so-called business gurus.
“One area in particular that is often overlooked due to adverse publicity is Saudi Arabia. But from a business point of view Saudi offers tremendous opportunities for growth due to its investment and development plans for the next decade. The Middle East is also a far more attractive option than its Far Eastern counterpart from the point of view of travel, culture, language and demand.
“The key, however, is to develop business relationships in line with the culture of the country – which is very different from dealing with Europeans. If you adhere to the cultural rules things can move very quickly.
“For example, The Business Company started advising on a brand new ducting manufacturing business in August last year. We researched the market and identified a partner with whom an equal share JV was formed. We then developed the project plan for the factory, machinery, HR, systems and suppliers and worked on the branding and marketing. The factory is now built and equipped and the first orders are due to go out in June. Yet many initial meetings took place over dinner, with family members present, and business was not even discussed.”
