We Must Rise to the Challenge

Small and medium-sized businesses must rise to the challenge of globalisation and seek new markets for their products and services, says Laurence McDougall, joint owner and Managing Director of All Steels Trading, a steel importer based in Knaresborough, North Yorkshire.

He is firmly of the view that the speed of globalisation and quickening of world trade flows means that SMEs have little choice but to examine how they should respond.

He said watching how Mexican businesses are accelerating their development in this climate had been fascinating.

However, he added: 'In addition to learning, it is equally important for British business to share part of this wealth generation. Our nation should make a deliberate entry into countries such as Mexico through acquisition, partnerships or start-up ventures where such opportunities naturally exist.

All Steels Trading buys steel from across the world and sells it mainly to stockholders and users in the UK. Turnover is expected to double to about £33m this year while income, combined with that of sister company Tomrods, will be about £50m. The firm is looking to move into European countries but Mr McDougall added that Mexico also offers exciting opportunities.

'One cannot ignore that Mexico is the world's 12th largest economy and a country that will enjoy exceptionally strong GDP growth over the coming years compared to mature European countries,' he said. 'The labour force is in excess of 46 million, demographically young and shop-floor salaries are circa one 12th of those seen in the UK.