The Exporters' Club calls for policies to support internationalisation that help Spanish companies
The Spanish Exporters and Investors Club recommends reviewing both business strategies and public policies to support internationalisation in order to tackle the supply problems that Spanish exporting companies have been suffering since the outbreak of the pandemic and which have been aggravated in recent months by the war in Ukraine.
It also considers that we are facing a structural problem, which could be prolonged over time, and which results in a significant increase in operating costs for companies. It therefore recommends the adoption of internationalisation support policies focused on the entire value chain to provide exporting companies with tools to help them identify potential risks, alternative suppliers and access to reliable logistics services.
This is set out in the technical note published by the Committee for Reflection on Internationalisation of the Exporters' Club, which is made up of businessmen and managers of exporting companies, academics and senior government officials.
In the report entitled "Las estrategias de las empresas exportadoras españolas ante los problemas de aprovisionamiento", authored by Juan Enrique Gradolph Cadierno, a commercial technician and government economist, he states that "exporting companies have not been unaffected by the supply problems recorded in the economy as a whole: they are doubly inserted in Global Value Chains and, therefore, are particularly sensitive to the episodes of shortages that have characterised the evolution of the international economy".
This data is also corroborated by the latest Export Situation Survey (ECE), carried out by the Ministry of Industry, Trade and Tourism, which highlights that most of the companies that export regularly claim to have perceived supply problems with the upturn in economic activity in 2021.
Among the factors that have had an impact on supply problems, the report of the Committee for Reflection on Internationalisation identifies the changes in the composition of demand; the restrictions imposed on manufacturing activities; the direct effects of the pandemic on the population, and the impact that these changes have had on logistical needs. In addition, in recent months, the war in Ukraine has had a particular impact on the availability and price of energy products and some raw materials.
Moreover, this is a situation that may last over time and be repeated in the future, according to the regular exporters themselves, which is leading most exporting companies, in general, to adapt their supply strategies by diversifying suppliers and increasing inventories.
"The options available to individual companies to manage future risks, such as identifying vulnerabilities, diversifying the supplier base or maintaining larger safety inventories, generally involve higher costs. These include increased supply prices, financial costs associated with inventory growth and the risk of obsolescence of stored products," explains Juan Enrique Gradolph Cadierno.
Therefore, in order to facilitate an effective response to the current uncertainty, which results in a shortage of inputs for the exporting company, the Reflection Committee on Internationalisation recommends the adoption of an internationalisation support policy which, instead of focusing on the traditional export support approach, with a sectoral or sector/country orientation, would give priority to the whole value chain.
"The next action plans for the internationalisation of the Spanish economy should include training and support actions that enable internationalised companies to understand and manage potential risks in their supply chains. They should also include tools to help companies identify alternative suppliers and access to reliable logistics services," says Juan Enrique Gradolph Cadierno, who also points to the mid-term review of the 2017-2027 Strategy for the Internationalisation of the Spanish Economy as an excellent opportunity to reinforce these actions.