Government Assistance to Industry

Memorandum submitted by AMEC plc

1. EXECUTIVE SUMMARY

UK Trade & Investment fulfils a leadership role for the whole of the United Kingdom to promote UK business and expertise overseas, raise awareness among UK businesses and provide services to enable UK businesses to compete effectively. Successful exporting businesses are a vital part of the UK economy. In addition, UKTI promotes the UK as a destination for inward investment.

Devolved powers to Scotland, Wales, Northern Ireland and the English regions has led to fragmentation of the holistic UK approach and there is a need for a more coordinated approach to the delivery of support for exporters. UKTI are best able to achieve this.

2. AMEC

AMEC is a UK listed FTSE 100 company, providing high-value consultancy, engineering and project management services to the world's natural resources, nuclear, clean energy, water and environmental sectors. In 1999 the business was over 90% UK generated, by pursuing a focussed strategy since then our international business has grown and approximately 70% of our sales are now overseas.

AMEC has worked closely with UKTI over many years. The relationship has been a great help to the company as it internationalised enhancing AMEC’s ability to network, at senior level, with governments and customers and through the UK Embassies and High Commissions. Senior managers have been seconded to work with UKTI on short and long term assignments completing market reports and undertaking Export Promoter work for specific geographies or industrial sectors.

UKTI have supported AMEC in pursuing major overseas contracts, with ensuing benefit to the wider UK supply chain. .

3. UKTI

UKTI has a leadership role in relation to the whole of the UK to encourage businesses to develop the capability to export, the benefits of this is that it develops internationally competitive businesses, contributes to the balance of trade, and creates additional jobs in the UK.

AMEC has helped with advice for UKTI professionals in the UK and overseas posts, in their support of other UK businesses.

4. Enabling businesses to compete internationally

UKTI’s role extends across every aspect of international trade and can bring substantial resources to maximise opportunities for UK businesses. This includes representation about fair access and recognition of technical, business & ethical standards. This includes a very significant role in supporting companies like AMEC when bidding for major contracts.

UKTI is the largest organisation supporting UK businesses to access overseas markets. Through partners they have programmes to assist businesses to become fit for exporting, initiatives which have been very successful in expanding the number of businesses taking export markets seriously.

These activities are of strategic importance to UK businesses and UKTI is the only organisation that has the capability to provide this support, to businesses of all sizes

5. Advisory Boards

The Advisory Boards assist overseas posts and UK staff in identifying markets of strategic potential for specific industries. In addition, they provide detailed experience of the markets by accessing people with direct experience. AMEC has participated in UKTI Advisory Boards for Oil & Gas, Power and the Energy Excellence Board by providing senior management to support the work of UKTI in specific industrial sectors.

These Boards allow knowledgeable individuals from specific sectors to provide information and advice to UKTI professionals in formulating the best ways of assisting SMEs across the wider supply chain.

6. Promotion of Overseas Opportunities

The leadership role is particularly important for ensuring that UK businesses are not overlooking markets, detailed studies of specific sectors have raised awareness of opportunities and helped businesses overcome difficulties in markets of high potential. The network of posts overseas and offices in the UK collect and distribute information on overseas markets and specific opportunities. Using partner organisations UKTI hold numerous seminars and other events, these events help stimulate interest in particular markets, and allow businesses with a common interest to learn from each other.

7. Promotion of UK Capability

The promotion of UK capability is a vital part of the service and includes the provision of information to key individuals in overseas markets. The offices abroad are staffed by individuals with a very detailed understanding of the local market and the opportunities. They support UK businesses by providing key contacts in potential customers, detailed opportunities and specific industry information. Overseas posts play a very important role by developing and maintaining relationships with key industry individuals.

The creation of the "UK Energy Excellence" website allowed overseas customers access the full range of skills and experience of the UK supply chain and enabled the UK supply chain to market itself under the single brand of UK Energy.

SMEs receive some support at major Conferences and Exhibitions through the development of UK sections which concentrates their promotion into a single brand and increases the impact of the UK presence.

I have personally presented at two major events in the North East of England and Aberdeen to over 200 SME’s on business opportunities.

8. Inward Trade Missions

Inward missions give overseas customers, regulators, and other influencers the opportunity to learn first hand about UK businesses and for UK businesses to meet potential customers. This can be a very powerful tool in developing the knowledge and confidence of customers to understand the strength and depth of the UK’s offering.

AMEC has participated in many Inward Missions to the UK and provided briefings for missions ranging from inter-parliamentary groups and visiting political and ministerial groups, academics, and National Oil Company personnel and other business delegations.

9. Outward Trade Missions

With partner organisations, UKTI arranges numerous visits to overseas markets providing first hand experience for UK businesses to make direct contact with potential customers. In many cases the visits coincide with an event of specific interest for example a trade conference or exhibition. These events provide a focal point for the mission and allow businesses to gain knowledge of the range of services already in market. For example, the mission to OTC in Houston allows businesses to learn more about the Offshore Oil & Gas Industry in a single week than would be possible in any other way. It is invaluable for businesses hoping to start exporting that they see the scale of the opportunity, and the competition. Similar impact is gained through participation at other major events such as the World Petroleum Congress, World Gas Conference and the World Energy Congress

AMEC has made personnel available from its local offices to support visiting Trade Missions, often providing briefings for participants as well as opportunities to meet Supply Chain Managers, including in markets as diverse as Canada, Australia and Kazakhstan.

10. Other Comments

While I am a strong believer in the leadership role of UKTI there are without doubt areas of duplication and confusion, particularly in relation to RDAs. The role of contractors to UKTI in relation to events and trade missions is an area where things do not seem as well co-ordinated as they could be.

Examples include:

Multiple outward trade missions to the same location often calling on the same customers and/or individuals, diluting the overall impact and placing additional burdens on hosts (and no doubt confusing them in the process).

Many of our competitor nations (e.g. Germany, France, USA and Norway) organise a country wide presence at trade shows where large numbers of businesses of all sizes can exhibit thus achieving a greater impact.

While it is important to recognise the expertise held in different organisations and the invaluable relationships that exist between trade groups, regional economic bodies, and the like, most businesses would prefer a simplified way to access support for exporters. Some creative tension encourages innovation and improvement however a single access point has much to commend it.

11. Conclusions

UKTI provides very important support for SMEs new to exporting or to a specific overseas market and they rely on the high quality advice and information from capable professionals at home and in the overseas market.

The leadership role cannot be overstated and the influence that comes from a coordinated UK wide organisation provides a great deal of support for our businesses,

A single access point which brings together all of the services for exports would greatly simplify things for SMEs and anyone new to exporting, at least where government funding is being used to provide the service.

UKTI has focused on key objectives and delivered their strategic plan and I have no hesitation in commending their work to the Committee.

24 September 2010