Business & Investment

Sir Banford: I made JCB a global export giant

new Year. A new beginning. It’s time to look to the future. The Brexit deal finally took place on Christmas Eve.

I believe the zero tariff negotiation settlement is a positive outcome for the majority of companies on either side of the channel. That is certainly my favorable result.

As companies adapt to practical and procedural changes, some bumpy moments may await, but the important thing is that the deal has taken place. It’s time for British companies to look to the future and seize opportunities.

Industry Wheels: JCB Chairman Sir Bamford says there has never been a better time for British companies to accelerate their efforts to expand exports to Europe and farther.

Eight years have passed since the referendum on EU accession was promised. There have been many changes since then. One of the things that hasn’t changed is that it makes us stand out as a trading nation.

We have always been an outward-looking country, and world trade has always been crucial to our economic prosperity.

This New Year begins with news from the Center for Economic and Business Research (CEBR) that the United Kingdom is the world’s fifth-largest economy after the United States, China, Japan and Germany.

A great foundation for the UK to build for the future if companies seize the opportunity available.

As an independent trading nation, there has never been a better time to accelerate our efforts to expand our exports. Not only in EU countries under the terms of the agreement, but also in distant markets such as federal countries.

According to a May 2020 report by think tank Civitas, the UK’s fastest growing export markets are currently Nigeria, India (both Commonwealth countries), Thailand and Taiwan.

Let’s be like Germany in export

So why aren’t British companies exporting so much? Only 9.6 percent of UK non-financial economies are actively engaged in exports. Surprisingly low percentage.

Imagine if it increased to 15%, or doubled to 20%. Given that exports account for about one-third of GDP, the benefits to the UK economy are important if more companies can be actively involved in exports.

This low percentage of UK exporters today explains why the UK’s balance of payments (inflows into the country compared to departures) has consistently been negative as a percentage of GDP since the early 1980s. Is it?

According to a May 2020 report by think tank Civitas, the UK's fastest growing export markets are currently Nigeria, India (both Commonwealth countries), Thailand and Taiwan.

According to a May 2020 report by think tank Civitas, the UK’s fastest growing export markets are currently Nigeria, India (both Commonwealth countries), Thailand and Taiwan.

I’m not an economist, but when comparing the 2019 minus 2% trade deficit with the 2019 Germany’s very healthy plus 6% surplus, what Germany is doing right and where the UK is wrong You need to wonder if you are there.

In my view, Germany should look more closely at the lessons of economic and business operations. Two countries with almost the same population but very different balances of payments. Simply put, compared to the UK, far more German products are sold abroad than they are imported into Germany.

Over 63 trade agreements in just two years

Germany is the third largest exporter in the world and the United Kingdom is the tenth. When it comes to exporting, be like a German. We really need to export more.

My company, JCB, has recently started its business for 75 years. Since 1945, JCB has grown into a global company with sales to more than 150 countries. This wasn’t a coincidence – it’s the result of a sharp focus on laser exports from the early days.

Our domestic market here in the UK was very important. Dealing with closest neighbors such as Ireland, France, Belgium, the Netherlands and Germany is also very important to JCB. Especially because these markets are close to our coast and our factories in the UK.

However, proximity is not everything. For example, consider the United States, the world’s largest economy. It is also the world’s largest market for the types of equipment manufactured by JCB.

Last week, Liz Truss and her Turkish counterpart were trapped in a tariff-free trade agreement between the UK and Turkey.

Last week, Liz Truss and her Turkish counterpart were trapped in a tariff-free trade agreement between the UK and Turkey.

Although it may be far from the coast, it is a market that offers so many opportunities and is easily accessible from British ports. In fact, every week hundreds of JCBs cross the Atlantic Ocean from Southampton. Even farther, India, Southeast Asia, and farther Australia, there are many export potentials for British companies.

We need to seize more opportunities. Of course, I accept that many companies may need help and guidance to make a leap forward in exports. The Chamber of Commerce and the Government’s export credit agency, UK Export Finance, is a great place to look for advice and support.

The trading environment for exporters is constantly improving. What has been overlooked in recent weeks and months is the success of International Trade Minister Liz Truss in securing trade agreements with Canada, Singapore, Vietnam and Kenya.

Only a few weeks ago, the Department for International Trade signed a trade agreement with Mexico. The pace is constant. Over 63 trade agreements have been signed in just two years.

Last week, Liz Truss and her Turkish counterpart were trapped in a tariff-free trade deal between Britain and Turkey, paving the way for a more ambitious trade deal in the future.

This particular development proves to be very important to the manufacturing industry. Such trade agreements open the door to British companies. They create the opportunity that the Prime Minister now wants us to grab. Doing so will grow the economy and create jobs. It should also help improve the balance of payments, which was once an important barometer of economic performance.

“I am keen on the opportunity that offshore wind can provide, especially when deployed to produce green hydrogen,” says Sir Banford.

“I am keen on the opportunity that offshore wind can provide, especially when deployed to produce green hydrogen,” says Sir Banford.

After years of discussing future relations with the EU, it’s time for UK companies to look to the future, boost the game with more exports and make the UK a true global leader in free trade. ..

Now that the agreement is complete and the transition period is over, we hope that ministers will have more time to focus on other priorities.

Dealing with Covid-19 is clearly at the top of the list, but the list is long. Providing a national infrastructure strategy is critical to businesses, such as upgrading road and rail networks and improving connectivity between cities and regions. Dealing with the tragedy of potholes in the local road network is also a driver’s priority.

Another priority on the list is the Prime Minister’s 10-point plan for the Green Industrial Revolution. Boris Johnson has the right to accelerate the path to Net Zero.

As a businessman, I am keen on the opportunities that offshore wind power can provide, especially when deployed to produce green hydrogen.

Fossil fuels are the enemy of the fight against climate change. I think hydrogen will play a very important role as a future zero carbon fuel, especially for public transportation, industry and businesses.

Protecting our natural environment is another important part of the Prime Minister’s plan to benefit everyone as citizens of our planet Earth.

Let’s hope that ministers will be able to spend more time and effort to realize the remaining priorities of British companies and the British people, including the promised “upgrade” agenda.

Sir Banford JCB Chairman And conservative peers.

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Sir Banford: I made JCB a global export giant

https://www.dailymail.co.uk/money/comment/article-9107015/LORD-BAMFORD-built-JCB-global-exports-titan.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Sir Banford: I made JCB a global export giant

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