Background: This Business Barometer research study is commissioned by The Gatwick Diamond Initiative (GDI) to help monitor local economic conditions on a quarterly basis. Conducted by Prowse & Company Ltd, this online survey is designed to source primary data from local businesses to measure how the Gatwick Diamond is performing as a location for business. The survey provides quantitative and qualitative evidence of business trends to aid the three Gatwick Diamond Task Groups in their activities. Importantly, the survey offers a snapshot of business confidence in the Gatwick Diamond area. In addition to general business questions each survey also considers a particular theme. This quarter focuses on International Trade. A total of 64 responses were received during the months of July, August and September 2012.

Gatwick Diamond Initiative - Business Barometer Survey Findings – Summer 2012

Respondents Profile

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Which industry sector are you in? Advanced Manufacturing

Biotechnology/Life Sciences

Business/Professional Services

Creative Industries

Energy/Green Technologies

Financial Services

ICT

Membership/Trade Body

Public Sector

Retail

Travel/Leisure/Tourism/Hospitality

Respondents Profile

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

What is your company's estimated turnover per annum

£250k or less

£251k - £500k

£501k - £1 million

£1.1 to £5 million

£5.1 to £10 million

£10.1 to £50 million

£51 million +

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

How many people does your company employ?

1

2-10

11-20

21-50

51-100

101-250

250+

General Business Confidence

Is your business turnover likely to expand, contract or remain the same in the next six months?

Expand

Contract

Remain the Same

Do you anticipate the need to further consolidate and reduce business costs within the next six months?

Yes

No

Unsure

Are your staffing levels likely to expand, contract or remain the same in the next six months?

Expand

Contract

Remain the Same

International Trade

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Yes No Unsure

Do you trade overseas?

Yes

No

Unsure

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Import goods Import services Export goods Export services

Does your organisation

International Trade

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

In response to enquiries from abroad

To increase sales / client base

To diversify from the UK market

To import cheaper materials and supplies

from overseas

Because your business is internet based and has

no geographical boundaries

What are your reasons for trading overseas?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Direct via UK base Overseas office Subsidiary company Agent Distributor Informal Associate Partner

In what form do you trade overseas?

International Trade

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Where do you trade overseas?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

In the next twelve months, does your organisation envisage its international trade will

Grow

Decline

Remain the same

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Yes No Would like to be

Are you involved in any collaborations or networks to help your business innovate, conduct R&D or trade

internationally?

International Trade

Help with identifying potential markets

& customers

Financial support for business

development missions

Advice/training in relevant languages/

culture

Business advice from

an expert

Advice on overseas

marketing

Opportunity to network with other businesses

trading overseas

Advice on Letters of Credit &

Export Regulation

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

What support would you welcome in relation to overseas trade?

UKTI British Embassy or High Commission

Business Link Chamber of Commerce

Trade Association Independent Consultant

None of the above

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Have you received assistance from any of the following organisations to help you trade overseas?

International Trade

Cultural & language barriers

Finding access /contacts in

local markets

Exchange rate & currency fluctuations

Understanding how to

price goods & services

Funding of travel

& business development

visits

Access to market

information

Finding a local agent or

distributor

Lack of internal

resources

Logistics & distance

Regulation

0.0% 5.0%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

What do you perceive as the primary barriers for international trade?

Our service/product is not transferable

Our focus is on the UK market only

We lack the skills & resources

Logistics difficulties outweigh the benefits

Currency issues

Wouldn't know where to start

Too much financial investment is required

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Why don't you trade overseas?

International Trade

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

The economies of China, India, Russia and Brazil represent key growth markets. Have you, or do you

plan to, investigate new opportunities in these countries?

Yes

Possibly in the future

No

Unsure

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Yes No

Were you aware that you can now fly directly from Gatwick to: China Hong Kong South Korea Trinidad Turkey

Vietnam

Yes No

Access to Finance

Have you, in the past three months, sought external finance to sustain and/or grow your business?

Yes No

How do you rate the availability of financing options?

Excellent

Good

Poor

What is the most pressing business concern for you currently?

Verbatim Comments: •Airline Passenger Duty •Developing the business locally. Nationally it is doing very well. •Lack of footfall and available spend •Exchange rates •Euro crisis •Oil price fluctuations and the effect on raw material prices •Finding customers •Recruiting good quality staff •Managing our expansion •Lack of orders due to lack of funds •The general gloom - we are talking ourselves deeper into recession through negativity. •Our potential clients have the funds but are unwilling to commit due to economic uncertainty •Ageing workforce •Coping with demand from my clients •Macro-economic environment and impact on demand •Confidence in the economy •Winning new business •Cash Flow •Assessing impact of welfare reforms on business •From a retail perspective trying to trade honestly whilst the major retailers have got a large proportion of the public convinced that they can buy at half or less price, all of the time. Every body should know that this is only possible by over inflating the so called original or recommended price.

•Funding growth and expansion •To increase distributors across the world •Cashflow again and pressure on margins •Sales •Increasing demand and building long term client relationships •Retaining clients and finding new clients •Finding new business - Training is always one of the first things to suffer in a slow market •Global economic downturn •Parking for customers and staff •The future •Efficiency •Assisting growth companies raising capital and general lack of trading liquidity •Losing local business to national companies. •Lack of time •Cashflow •Start up of a new venture •Financing Growth •How to grow faster than we currently are, and hiring good staff locally •Very tight margins economy shrinking •Lack of demand for property •Gaining customers •Cashflow •Cash flow; I am working on several long term projects but clients do not pay in advance for services •Increasing sales and turnover

Conclusion

Verbatim Comments: •Helping us to find someone to develop a semi demolished commercial site as a new one. •Easy in and out or work/life living as in Shoreham Ropetackle! •Fine to tick any of these but how would you resource it? If you become another conduit for government funding - my concept of the funnel would occur. That is that those organisations who funnel funds inevitably use some of the valuable funds therefore less goes to the people who need the funds. General UK malaise - we are littered with has been organisations SEEDA, Business Link contractors, TECs and so on. •Economic growth. •Master classes in business essentials like management, finance, marketing, selling, people issues and the like.

0.0% 5.0%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Bu

sin

ess s

up

po

rt

Acce

ss to

fin

an

ce

Ho

usin

g

Influ

en

cin

g

na

tio

na

l/re

gio

na

l p

olicy

Infr

astr

uctu

re

Inve

stm

en

t

Inw

ard

in

ve

stm

en

t

Lo

ca

l P

rocu

rem

en

t

Pre

mis

es/D

eve

lop

me

nt

Site

s

Skills

/ T

rain

ing

Tra

nsp

ort

Finally, please advise if there is anything that you would like the Gatwick Diamond Initiative to focus upon in the year ahead: