Despite 81% of businesses stating that it’s more important than ever to have an international trade strategy, 44% don’t have the skills to engage with government stakeholders on trade issues – a core element of any trade strategy.
Getting the right talent and skillsets
A primary focus should be on consolidating trade expertise that is currently highly fragmented across business functions from customs and legal to government affairs. Often trade skills exist in a company, but key decision makers are unaware of them, and different stakeholders rarely come together to form a coherent picture of trade objectives that can be communicated to the C-suite and external partners or customers.
Difficulty in finding individuals with relevant trade expertise is holding businesses back from expanding their functions, even though they state this is an immediate or short-term priority.
A focus on the UK
As UK businesses overcome Brexit-related disruptions, they have an opportunity to adopt a more proactive trade strategy to maximise their use of new trade agreements, engage with the Government and other stakeholders on trade issues, and become familiar with new trade developments. The research found two main areas where UK companies should focus energies:
- Create a dedicated trade function: Businesses in the UK are significantly less likely to have staff within a dedicated trade function, with only just over half (54%) saying this as opposed to two thirds (68%) in other markets – something already shown to have a significant impact on business confidence and skillsets in strategic trade areas.
- Don’t delay in sourcing talent: It is seen to be even more difficult to hire people with trade experience in the UK with 62% of UK businesses saying they think they will find this difficult, as opposed to 54% in other markets.
International trade capability in 2021
62%of UK businesses expect difficulties in hiring staff with international trade experience.
Building a better trade function
Continuing to do the basics and tick off operational boxes will not be enough as international trade becomes increasingly important and complex. Businesses need to take a step back and assess their current function and strategies; understand and identify where improvements can be made; and, formulate a plan to implement the improvements. Action plans are likely to include:
- Appointing a senior officer responsible for your organisation’s trade strategy and work across relevant business functions to reduce fragmentation
- Researching new market opportunities and quantifying access barriers
- Working to build understanding of the external trade policy-making process and improve trade literacy across your business
Summary
As the cross-border trade environment becomes harder to navigate, the challenges facing trade functions are rising. In order to succeed, teams must now move beyond the basics, assess gaps in their skillsets and create a resilient trade strategy.
