**London**: Aramex UK urges logistics providers to remove barriers hindering small and medium-sized enterprises from accessing international markets, citing the UK’s weak export performance and a need for tailored support to boost engagement among SMEs in global trade.
International logistics specialist Aramex UK has called for a concerted effort from logistics providers to enhance their support for small to medium-sized enterprises (SMEs) as UK goods exports continue to wane. Umar Butt, CEO of Aramex UK and Europe, has voiced concerns that many logistics providers currently create barriers that impede SMEs from effectively accessing international markets. This situation arrives against the backdrop of alarming trends indicating that the UK has experienced the weakest export performance among G7 nations over the past decade, with Japan being the only nation to fare worse.
Recent statistics reveal a significant decline in the UK’s export volumes, which fell by 5 percent to the EU and 5.2 percent to other global markets during the final quarter of 2024. The overall goods trade deficit stands at £204 billion for the year, offset to some extent by a £176 billion surplus from services, but leaving an overall trade deficit of £28 billion. Notably, only 10 percent of SMEs currently engage in exporting activities, a figure that Aramex UK believes could be improved with enhanced access to logistics support.
The insights provided by Santander last year highlighted that over 52 percent of UK businesses see overseas trade as a driver for growth. Moreover, the survey revealed that 39 percent of businesses expressed intentions to expand internationally within three years, a significant rise from 17 percent the previous year. This indicates a clear appetite amongst SMEs to explore international markets, which, according to Umar Butt, represents a strategic opportunity for the UK economy.
Butt emphasises the need for the logistics industry to evolve its approach by viewing SMEs as vital customers rather than sidelining them. He stated: “While exporters account for a relatively small share of the total UK business population, a significant number of companies have the potential to enter international markets but have yet to do so. Encouraging these businesses to export presents a major opportunity to drive GDP growth in 2025 and beyond from our point of view.”
In addressing the current challenges, Butt noted that while government support is essential, logistics companies must also adapt by providing solutions that cater to the unique needs of SMEs. He suggested reducing stringent volume requirements that disproportionately affect smaller businesses and favouring a pricing structure aligned with the actual volume shipped.
As part of their initiative to support SMEs, Aramex recently launched a new programme that removes volume caveats, credit restrictions, and price limits for smaller shipments, thereby facilitating easier access to global markets. Serving over 35,000 SME clients worldwide and having directly assisted more than 3,700 startups in the past year, Aramex aims to offer a flexible logistics service tailored to the specific needs of SMEs.
Umar Butt is set to highlight these initiatives as he presents the Exporter of the Year award at the annual SME National Awards this week. He expressed the vital role of SMEs in the UK economy, noting their contributions account for 25 percent of the nation’s GDP and nearly half of private sector turnover. Despite this significant impact, many SMEs remain out of the international trade arena due to inflexibility in the logistics market and a lack of resources to navigate necessary regulations and compliance.
Butt concluded by emphasising that the logistics industry must adapt its mindset. He stated, “From our experience it boils down to two core issues: a lack of flexibility in the market caused by providers enforcing rigid requirements that are effectively designed for large-scale exporters rather than the needs of smaller businesses and secondly, a shortage of available resources and guidance to help smaller businesses navigate complex areas such as customs regulations, shipping costs, and compliance requirements.”
The insights from Aramex UK underscore both the challenges and opportunities present for SMEs in the context of international trade, spotlighting the potential for collaboration among businesses and logistics providers to foster a more inclusive trade environment.
Source: Noah Wire Services
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