Over half of UK companies feel uncompetitive in Europe

07/07/2008

Fortis Commercial Finance has conducted a survey of UK midmarket businesses to find out whether they felt able to compete effectively with companies based elsewhere in Europe. The survey also aimed to discover whether UK companies felt that late payment by overseas customers was causing cash flow problems.

The findings of the survey revealed a widespread lack of confidence in firms' abilities to compete on the European stage. In Wales, for example, 79% of firms felt they could only be competitive in the UK.

Even though there were many respondents who showed a clear confidence in their international competitiveness, the results for the UK overall showed that over half of all firms (55%) felt they couldn't compete against their European counterparts.

Only 17% of firms said they felt comfortable competing in both their UK and European markets.

On the question of the cash flow impact of late payment, things were looking a little more optimistic. Although 51% of companies said they waited longer for payment from overseas customers only 11% reported cash flow problems arising from late payments.

Tim Corbett, Managing Director of Fortis Commercial Finance in the UK, commented: "The current financial environment is undoubtedly affecting many businesses. These findings suggest that the strength of the euro appears to be serving to support European based competitors improve their positions."