For some businesses, particularly SMEs, the impact of Brexit on international trade remains a point of great frustration. According to new research from the Centre for Economic Performance (CEP) at LSE, total goods exports from the UK fell by an estimated £27bn (or 6.4%) in 2022 due to a 13.2% fall in the value of goods exported to the EU. The same study found that 14% of firms (around 16,400 firms) that had previously exported to the EU stopped doing so after the Trade and Cooperation Agreement came into force in January 2021 and most of the firms whose exporting business suffered were smaller ones.

Repeated confidence surveys from the Federation of Small Businesses (FSB) find SMEs have experienced reduced export values and struggle to export to their biggest market. Europe remains the largest export market for SMEs and the FSB has said SMEs struggle to look at new markets such as the US and Middle East. Moreover, the costs of trading in Europe remain disproportionate for a small business compared to a large company, particularly because their exports are low volumes.

Some, however, are managing to forge a path through the confusion as the UK acclimatises to the new trade opportunities with the rest of the world. Like Playdale Playgrounds which specialises in educational play and is leveraging its ‘Made in Britain’ manufacturing status to win new markets abroad.

The company has successfully leveraged tariff reductions to its advantage, says Barry Leahey, President of Playdale Playgrounds. Leahy notes a steady improvement in the UK’s trade potential thanks to the free trade agreements (FTA) signed after Brexit coming into place. He advises on the importance of building relationships with trade partners outside Europe, something the company has done in Japan, for example.

“Generally speaking, we are very analytical in our decision-making at Playdale,” says Leahey. “Most recently, I believe our decision to find a partner in Japan will be very lucrative for us in time, helping us to secure further trade outside of Europe.”

The UK prime minister has pledged to “reset” relations with Brussels that seeks a better post-Brexit deal from Brussels. For now, trading more with Europe will take time as policy makers seek to find new ways to work with the EU successfully, but Leahy believes things are starting to change. “We are finally coming out of that transitional stage and instead we are now entering the stage where people are beginning to forget what the ‘norm’ used to be, and instead businesses are acclimatising to the ‘new norm’.”

He adds that the tools and support for SMEs to build their exports do exist. “The most significant hurdle for SMEs is having the bandwidth and resources to understand exactly what the new logistical changes and laws mean for their industry,” he says. “At Playdale we have taken the time to learn how to use the tools and resources available to UK businesses to simplify the transition.”

He says that logistics are a challenge for SMEs, as well as the associated paperwork, but insists it is possible to make headway “The way we have to trade with Europe is now different, however, Playdale was already dealing with the rest of the world on this basis so it was easier for us to adjust to these changes. We regularly talk to the Department of Business and Trade team and attend webinars on important subjects, which helps us get to grips with changes fast.”

Playdale has also won contracts by leveraging its Made in Britain branding appeal to international markets. “It’s important to have confidence in the fact that Great Britain will always be a fantastic historical brand – especially when boosting your reputation when trading abroad,” Leahey adds.

“Both before and after Brexit, it still holds true that being a Made in Britain business tells consumers and partners that your products are tried and tested to the highest standard with a skilled labour force. This in turn holds the potential to open doors in international trade, but don’t forget that ultimately it is the company’s values and procedures that make things happen.”

He adds that SMEs should prepare their brand to compete in the international marketplace.

“The world is a very competitive place – during the Covid pandemic it may have been tough for trade, but many countries had a progressive mindset during this time and honed their focus on digital marketing and manufacturing automation. The result of these sudden changes have just made the landscape even more competitive.”

He advises on diversifying exports to a wider range of countries and cultures beyond Europe requires a preparedness to compete on more fronts than ever. Strategy-wise, that means strengthening your brand identity and being ready to adapt to international tastes and markets, he says.

“In the future, politicians will continue to open more doors, but it will be up to British business leaders to work hard delivering on their individual business strategies to grow on the world stage. It is possible – here at Playdale we are proof of that – but it all comes down to being analytical in your decision-making, setting out a clear strategy, exploring new opportunities in countries that you believe will be lucrative for your business sector, and after all that, it will come down to how much you want to make it work.”