Regus PLC : Opportunity knocks overseas – but only some are listening

Many UK companies are selling themselves short by ignoring the potential of international trade, according to a new global study from workplace provider Regus. Despite evidence that UK companies operating internationally are performing better in the economic downturn than those solely focused on the home market, only a fifth (21%) of domestic firms intend to dip their toes into overseas markets in the next two years, compared to 39% of domestic firms in France and 26% in Germany.

Evidence that foreign expansion is good for business is being cold-shouldered by swathes of UK firms. Reliance on the UK's strong domestic market may have sufficed in the past but exports play an increasingly important role in today's economy; the CBI recently reported that by building up an export presence outside Europe, the UK economy could grow by £20 billion.

The attitude of companies already operating internationally provides a stark contrast: 75% intend to expand still further, providing testimony that an export strategy is contributing to commercial success in the economic crisis.

The Regus Global Survey polled opinion from over 12,000 companies around the world including 2700 in the UK. It also investigated perceived obstacles to international trade.

'Property' and 'People' emerged as the top concerns:-

· 32% of firms say the biggest obstacle to overseas expansion are the challenges of setting up a physical presence in a foreign country

· 57% of companies say that property commitments have to be very short term when setting up a foreign operation, as they do not know how quickly or slowly they will grow

· Opinion is split over the where senior management for overseas operations should hail from, with 43% favouring a mother country manager, and 57% opting for a local manager

· However, only 35% of UK firms require managers to be fluent in the local language, compared to 45% of French firms and 57% of German

Celia Donne, Regional Director at Regus comments: "Our report clearly shows that overseas expansion is good for business: internationally trading firms are faring better in the economic downturn than those who have stayed within their home markets. This applies to companies both large and small, and should act as a wake-up call for those still solely focused on domestic markets to find cost-efficient ways of moving cross-border to enhance earnings and spread risk.

"While 'property' and 'people' are perceived as potentially major challenges to overseas expansion, the wide availability of flexible workspace options around the globe make the 'property' element more perception than reality. For instance, firms of all sizes use the Regus global network to enter new markets. Google is a prime example: we've helped them expand their reach across the globe, especially in emerging markets, providing low-risk, hassle-free workspace so they can channel all time and resources into making the local operation a success."

Nick Baird, CEO of UK Trade & Investment, adds: "The evidence outlined in this report will reinforce the importance of UK exports in people's consciousness. Exports contribute 60 per cent of UK productivity growth. Our exports play a vital part of our national prosperity and economic stability.

"This report corroborates UK Trade & Investment data that show that companies who export to any country, in any financial climate in the long term, perform better and are more profitable than those who do not.

"In the current economic climate, no business can afford to sit still. The good news is that more and more British companies are becoming more export aware. But the UK can and must do better to export and seize opportunities in high growth markets. For example, the Thai Government plans to spend around £27bn on projects in transport, public health, water supply development, education and training and housing so there are a host of opportunities for UK firms. UK Trade & Investment supports British companies' efforts to take advantage of these and other opportunities."

Various commentators have highlighted the performance gap between the UK's international and domestic business communities. In the Q4 2011 edition of the Regus Business Tracker, UK firms operating overseas performed better in each business indicator: higher business confidence, more buoyant recruitment plans and greater revenue and/or profit growth.

A copy of the report "The Export Imperative" is available from the press centre on the Regus website

Regus is the world's largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world's largest network of video communication studios. Regus enables people to work their way, whether it's from home, on the road or from an office. Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities.

Over 900,000 customers a day benefit from Regus facilities spread across a global footprint of 1,200 locations in 550 cities and 91 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange.