UK small businesses may struggle to import over coming months

Importing is a big part of business. In the UK alone, at least £56 billion of imported goods entire the country month by month, a lot of which are pre manufactured and not simply raw materials. A lot of companies operate by buying wholesale, importing, and then selling on at a higher price, and for small businesses, this is a key part of making money compared to their bigger competitors. 

Importing is a very wealthy industry all on its own, but with the impact of the Coronavirus over the course of 2020 and beyond, what will the future of importing goods look like, especially when it comes to operating as a small or home owned business? 

Photo by Martin Damboldt from Pexels

There are three big importing countries currently in the market – China, Germany, and the Netherlands. Trade in and out of these

countries has been reduced on a global scale, but not by as mean margins as you may first think. Indeed, in the UK, only 59% of businesses who import on a regular basis reported they are bringing in fewer goods than usual. Whilst this may be more than half of the studies participants, it’s still not a proper picture of the current importing situation as a whole. 

At the same time, far fewer businesses than you may think import on a regular basis. In fact, a lot of newer businesses are just getting into the business of importing; being able to buy at lower prices, and in bulk, from a country on the other side of the world can help to keep costs down and to kepe revenue flowing both ways. Guides such as how to wholesale from china are very popular for smaller operations to follow in the current climate, as we’re in murky waters, but they’re not as uncharted as things may seem. However… 

The difference in industries

There’s a real difference in the impact on importing when it comes to handpicking industries. Some are under far more stain than others; one such example is the transport industry. Transportation companies are reporting 80% less importing than normal, and a slightly more narrow margin when it comes to exporting too, at 81%. 

Other such industries affected the most by Coronavirus when it comes to imporating are storage companies, food service and hospitality companies, as well as support services and the construction sector. All of these industries rely a lot on raw materials from all over the globe, and a halt to the transportation of these ingredients, sources, and materials have slowed business by a considerable profit. It’s reported that financial expectations are nowhere near meeting their usual targets for this time of year. 

So if you’re a business owner worried about the future, depending on which industry your business runs in, there may be issues in your importing program in the coming months. It’s important to keep to date with all government rules and regulations regarding global transport, and restrictions at customs are more firm than ever before.