BQ Special Feature.pdf

EXPORTING: SCOTLAND GRABS WORLD’S ATTENTION In association with

In partnership with:

SPECIAL FEATURE

MIND YOUR LANGUAGE

How language barriers are costing SMEs dearly

GOING FOR GOLD

Athletes were not alone in winning at the Games

ARABIAN SIGHTS

The time is right for Scots firms to target Gulf States

INSIGHT

AUTUMN 14

>> 10 Steps to export success If you’re looking to win new business in overseas markets, we’re ready when you are. Our Smart Exporter international trade advisers are on hand to help you every step of the way 1. Research potential markets

Identifying the markets that offer you the best opportunities will enable you to target your resources and achieve the best returns.

2. Plan your export strategy

There are four things to consider as you start to build your plan: your people, your capacity, your products and your knowledge.

7. Know the laws and regulations

Having a thorough understanding of the legal and regulatory environment in all countries you’re considering exporting to is essential.

Consider product liability cover; using a reputable international lawyer; local contracts, the legal and regulatory environment.

8. Get protected

3. Get your products or services to market

Make sure you have adequate protection against non-payment or for any loss or damage of goods in transit. Most insurers will offer products covering damage and loss of payment.

4. Visit potential markets

International transport can be complicated and getting this right can depend on the agreement you put in place with your customer. Using a specialist freight forwarder can simplify logistics.

Initial options to consider include selling directly, selling to a distributor, using a sales agent or creating a joint venture.

Trade shows and market visits are a great way to learn more about your customers, meet potential clients and win new business.

5. Understand the admin

The documentation needed to comply with local import/export and tax requirements will vary considerably across different markets. We can guide you through the paperwork needed to export within the EU and outside the EU.

6. Make sure you get paid

9. Keep logistics simple

10. Engage your customers

Use every opportunity to increase your chances of getting repeat business and help build a really good brand and reputation as a reliable international exporter. Build brilliant relationships, deliver on time, keep prospecting, partner for growth, use your experience and promote, promote, promote.

Get to know the practicalities of terms of sale, ‘Incoterms’, export documentation and written quotations.

Talk to our export advisers directly to help answer your specific questions on doing business outside Scotland.

Smart Exporter has helped more than 3,000 Scottish companies progress their international ambitions.

Visit www.scottish-enterprise.com/international or call 0800 019 1953 Smart Exporter is our international business skills programme – free to any company registered in Scotland. It’s delivered

by Scottish Development International (SDI) and Highlands and Islands Enterprise (HIE), co-funded by the European Social Fund and the European Regional Development Fund.

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WELCOME

SPECIAL REPORT: EXPORTING: SCOTLAND GRABS WORLD’S ATTENTION The world has been watching us – and the feel-good factor in 2014 is an inspiration to all kinds of Scottish businesses looking for fresh opportunities to grow. The glorious events of the year – the Glasgow 2014 Games, the Ryder Cup and the Year of Homecoming – have given Scotland an amazing platform to build on existing trade links the world over In association with Kenny Kemp, BQ Scotland Editor

This report shows the significant work that has been done to create this backdrop, particularly from Scottish Enterprise and Scottish Development International which offer Scottish companies highly valued international trade support through their strengthening global network.

There are also great emerging exporting stories, including winners in the inaugural BQ Scottish Export Awards. The belief is that Scottish firms already successfully trading overseas will become exemplars to many more Scottish companies to raise their ambitions and think globally.

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Whether you’re new to exporting or more experienced in international trade, then head to the ExploreExport 2014 roadshow at BT Murrayfield Stadium, Edinburgh on Monday 10 November.

Meet market experts from over 60 countries, network and explore insights and opportunities for your business across the globe.

As for the BQ Export Awards – they will be back in the spring of 2015: bigger, brighter and bolder.

Kenny Kemp, BQ Scotland Editor

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OVERVIEW INSIGHT

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A CHANCE TO TRY EXPORTING

Head to Murrayfield and explore Global opportunities for your business

Anne MacColl, the chief executive of SDI There is a myriad of opportunities for ambitious Scottish companies wanting to make the leap into new international markets.

Exporting often implies selling widgets and packaged goods, yet today’s overseas business opportunities are much deeper and more varied than before.

International trade involves joint ventures, knowledge transfer and project management with many Scottish companies providing solutions and expertise from subsea engineering and translation services through to food, drink and hospitality.

These are the firms who should be heading to the ExploreExport roadshow in Edinburgh on Monday 10 November. This is a must-attend event for those keen to expand their exporting horizon. The roadshow, supported by Scottish Development International, is on the opening day of the UK Trade & Investment’s ExportWeek, and trade and commercial officers from over 60 countries will meet with Scottish businesses at the BT Murrayfield Stadium, in Edinburgh.

Anne MacColl, chief executive of Scottish

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Development International, said: “This is an unmissable opportunity to learn more about what overseas trade could mean for your business, whether you have a product to sell or a service to export. We know that exporting for the first time can seem daunting, but there is a wealth of expertise available from our advisors and we want to provide a clear and easy pathway to help you succeed. So, if you’re interested in broadening your company’s international horizons, don’t miss out - put the Murrayfield event in your diary today.”

Scottish companies can book one-to-one meetings with market specialists, participate in export seminars, engage with exhibitors and network with hundreds of fellow exporters.

Make the most of the four breakout seminars, running throughout the day.

EXPORT FINANCE • Meet with representatives from the Scottish Investment Bank, UK Export Finance, HSBC and The Royal Bank of Scotland • Learn how to reduce financial risk when trading overseas • Speakers: UK Export Finance, Jon Boyce SIB – Anne Featherstone and Catriona McCracken HSBC – Ian Burns RBS – Joanne Hills DEVELOPING YOUR PRODUCTS AND SERVICES FOR INTERNATIONAL MARKETS • Meet innovation specialists • Find out which markets offer the best opportunity for your products or services • Discover if you need to tailor your products or services for your target market and what support is available to help you do that

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• Speakers: Scottish Enterprise Innovation Specialists, Morag Eaton and Charles Broadfoot ECOMMERCE: REACH NEW MARKETS BY SELLING ONLINE • Get support from ecommerce experts • Learn how to make the most of ecommerce to reach new markets • Gain insights on selling via online marketplaces • Understand the practicalities of selling online • Speakers: Scottish Enterprise ICT Specialists, Chris Elvery and Alan Linton Bill Gordon, Red Torpedo John McIlvogue, Stevens and Graham Sarah Chanter, Eteaket SAFEGUARDING YOUR INTELLECTUAL ASSETS • Meet with intellectual asset specialists, Lincoln IP Attorney and Bright Idea Scotland • Get help to protect your intellectual assets abroad and discuss support available for your business.

• Speakers: Scottish Enterprise Intellectual Asset Specialists, Catherine Potts, Martin Layton and Conall McGinlay Bright Idea Scotland: Nikolaus Sennhauser Lincoln IP: David Fulton Scottish firms based in the Highland and Islands will have the opportunity to hold discussions via Skype. This event is free to Scottish companies. n For more information and to book your place, visit www.scottish-enterprise.com/export2014

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OVERVIEW

CANADA CALLING FOR SCOTTISH FIRMS Scotland and Canada have cherished cultural and historical ties. The two nations also have long-established trade arrangements which can boost Scottish companies. Scotland already exports around £380m of goods and services to Canada – but more firms can help raise this to a higher level.

Scottish Development International has made the call for interested Scottish firms to pack their coats and scarves and join its trade mission in November.

Raymond McGovern, Scottish Development International’s head of the Americas region, said: “Scottish companies should look to Canada as their gateway to North American markets.”

The implementation of the Comprehensive Economic and Trade Agreement is expected to increase trade flows between the two markets.

At a Scotland House event, during the Commonwealth Games, emerging creative businesses in Scotland heard from existing exporters about doing business in Canada.

“It was good to hear about all the opportunities available,” said one participant.

“We’re in the creative sector and we learned more about Vancouver. A lot of animation studios have moved there, so we know there is a growing industry, “ she added.

Creative industries are just one of the sectors. There are opportunities in construction, financial services, food and drink and software.

The trade mission to Canada is from 25 to 29 November, and the deadline for firms wishing to be considered is 31 October. n For more information visit www.scottish-enterprise.com/canada2014 or call Paul Clark on 0191 426 6333.

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SPECIAL FEATURE | AUTUMN 14

INTERVIEW

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THE PERILS OF NOT MINDING YOUR LANGUAGE

English might be the lingua franca of international business, but companies such as award-winning export firm Lingo24 show the crucial importance of translation. Kenny Kemp reports Scotland’s exporting businesses need to improve their language skills. That has to be a priority. The Association of Translation Companies has launched a campaign to raise awareness among SMEs of the amount of money they lose each year from poor export performance due to a lack of language skills.

Research provided to the UK’s Department for Business, Innovation and Skills by Professor James Foreman-Peck of Cardiff University’s Business School has calculated that UK businesses have lost the equivalent of 3.5% of GDP – or £48bn – from reduced capability to export, with the majority of this loss from SMEs. Bigger companies find it easier to trade across borders and will often have a significant existing footprint in their countries of operation. However, smaller organisations

SPECIAL FEATURE | AUTUMN 14

have less resource to invest in specialist language skills and are more reliant on their customers speaking English.

This has meant a stream of opportunity for Lingo24, the BQ Scottish Export Awards overall winner in 2014. Lingo24 is a translation company, with a strong focus on developing new technology to cross language barriers. The company helps exporters to generate business in foreign language markets, as well as exporting ourselves.

“Our success is down to businesses in Scotland and overseas who see the value in exporting. It’s a great world out there, it’s expanding and we can support the work with our translation services,“ says Lingo24’s managing director Andrew Campbell.

The company offers both professional human translation and machine translation, and can assist businesses with foreign

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language internet marketing and associated technology support.

Lingo24 still does most of its translation into the top European languages, but demand for emerging market languages like Russian, Chinese and Brazilian Portuguese is growing strongly. Founded in Aberdeen, Lingo24’s headquarters are now in Edinburgh, with other offices in London, Germany, Panama, Romania, the Philippines and New Zealand. Most of the translation work is carried out in their translation platform, while they have developed an easy-to-use online interface for clients.

“Lingo24 was created as a web-based, global company from the outset. This has helped us achieve high rankings in country-specific search engines, and compete on an equal footing with local competitors,” said founder Christian Arno.

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INTERVIEW

BQ Scottish Export Awards Exporter of the Year 2014: Host Adrienne Lawler with Claudia Barna and Andrew Campbell, of Lingo24, presented with their award by Alastair MacColl, chief executive of BE Group “We have relied extensively on web marketing to increase our brand profile in both established and new markets. In some of our main overseas markets, such as Germany and Switzerland, we employ locally-based freelance copywriters, bloggers and social media managers to ensure our marketing fits the local culture,” he says.

Lingo24 attends industry events to network with potential clients and promote its services. These range from IBC Conference and Exhibition, a meeting place for those creating and managing electronic media and entertainment technology for the future, in Amsterdam (where the firm joined an exhibition booth with Scottish Development International) to Localization World in California and the World Food Expo in the Philippines. Lingo24 are in an important niche – which is excellent considering

Scotland’s foreign language skills have been deteriorating in recent years.

Speaking of the wider sector, Geoffrey Bowden, general secretary of the Assocation of Translation Companies, says awareness of the problem is the first stage to sorting it out.

“Only being able to communicate in English creates a number of problems for businesses selling into other countries. First, it creates a competitive disadvantage because customers prefer to use their own language when doing business. However, several other significant issues arise, including the ability to develop strong business contacts, accuracy in any required legal documents and avoiding potential confusion, which can lead to misselling of products or services.”

He said: “The most alarming fact is that a significant number of smaller businesses simply do not know that they are losing

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out financially. Our research shows that many of those people saying that they had no language or cultural difficulties when exporting also had no capability to communicate in another language, apart from English. This is in contrast to companies that did have a multilingual approach to business – they were much more likely to comprehend the challenges they had in communicating effectively and factor this into their long-term marketing plans.

ATC has re-launched its hotline (01273 676 777) and database of language service providers from across the country that specialise in supporting SMEs seeking to export. The association liaises closely with UK Trade and Investment and supports the UK Government’s drive to provide training and increased awareness of the importance of languages when entering new markets. n

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INTERVIEW

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SHINING BRIGHTLY ON THE CLYDE While Scotland’s athletes were winning Commonwealth medals, business leaders were given an enviable platform in Glasgow where the interchange of ideas has been turned into export opportunity. Linda Murray, of Scottish Enterprise, explains to Kenny Kemp about the massive opportunities created in 2014

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Scotland’s outstanding success in Glasgow has showcased a winning mentality and a mindset which can be converted into sustainable exporting achievement, according to Scottish Enterprise’s director of 2014 activity.

“The success of the Games has given us a fantastic boost for business. The fact that the Glasgow Commonwealth Games went so well – and we were winning lots of medals, personal bests and world records being set – with great weather and the people of the city showing how friendly they are, just made it so much easier,” says Linda Murray.

While her own sporting highlight was sitting in the noisy crowd at Hampden Park, cheering Scotland’s poster girl Eilidh Child as she won a silver, it was the business events where Scotland put on a gold winning performance that gave her professional pleasure.

This was the culmination of months of collaborative work with all the organisations and agencies endeavouring to make 2014 a year to remember. Outside of the Games, this has been a concentrated period when key business people from around the world have had their eyes opened to Scotland. 2014 has been a once-in-a-generation opportunity that the country could not miss.

In January this year, Linda Murray became Scottish Enterprise’s Director of 2014 activity, and was handed the task of bringing together the range of activity that Scottish Enterprise was developing, and working collaboratively with partners who were preparing the ground for Scotland’s most momentous year. With the Glasgow Games, the Ryder Cup, and the Year of Homecoming, there were business opportunities that required maximum impact.

“Since January, I’ve been trying to identify and encourage synergies across a range of business focused projects to ensure we maximised the opportunity presented by 2014 ,” she says.

While the team in the Glasgow 2014 Organising Committee had been involved with the planning and execution since 2007, Linda represented fresh blood, stitching together the sporting and business opportunities in a broader canvas. Scottish Enterprise was keen to build a dedicated business programme to take advantage of the Commonwealth Games, which focused on the Scottish Government’s Legacy 2014 themes of a more

INTERVIEW

I saw a light-bulb go on for many that we were more than haggis and tartan... we were capable of excellence. It was about getting the right people to hear the right message at the right time active, connected, sustainable and flourishing Scotland. Linda became the chair of the ‘Flourishing’ group to look at the benefits and international opportunities of the Games.

The Flourishing group brought together a range of partners, including Volunteer Development Scotland, Skills Development Scotland and the Department of Work and Pensions, all involved in the process of delivering an economic legacy.

“What we had from January was a chance to look at how we might work together, supporting our common objectives to build an over-arching legacy programme rather than individual projects,” she explains.

This unique programme was already taking shape with the creation of a business programme for Scotland House, a major Commonwealth Games Business Conference, and Showcasing Scotland, a Food and Drink ‘meet the buyer’ event, showing off Scotland’s exceptional produce. Then it was a case of encouraging key people to come to Glasgow.

Linda spoke to groups of UK-based diplomats and dignitaries in London to tell them about Glasgow and the exciting programme of business activity that would run alongside the sporting and cultural programmes “A lot of this was around tourism and hospitality and we got great feedback with people saying they would like to come to Glasgow. I saw a light-bulb go on for many people that we were more than haggis and tartan, and we were capable of excellence in financial services, technology and food and drink, as well as many other sectors.”

“It was about getting the right people to hear the right message at the right time.”

The keynote events were the high-powered Commonwealth Games Business Conference, opened by Scotland’s First Minister Alex Salmond, and closed by the UK’s Prime Minister David Cameron; the creation of

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Scotland House, in Glasgow’s Merchant City, and British Business House in the City Chambers. In all, there were 91 events involving a broad range of partners.

“The message we were pushing at the time of the Games was that we are a great place to do business and we have excellent companies who want to do business globally. The sport was great over the two weeks and lots was happening, but we wanted to convert this into exporting and trading opportunities. All the partners put together a comprehensive business programme and Scottish Enterprise hosted a total of 17 events at Scotland House, including four ‘Doing Business Events’, focusing on Canada, Australia, India and Singapore. We had over 1,000 delegates at our events over eight days,” she says.

Many Scottish companies have already done well – indeed 64% of the £300m from Commonwealth Games contracts went to home firms – but this has been about extending the exporting ambition to other companies who have not had international markets at the front of their mind.

“The events were the opportunity for Scottish and international companies to get together.

We had companies that were successful around the London Olympics who were then successful around Glasgow. Some who did well secured Ryder Cup contracts,” she says.

While major Scottish domestic firms such as Aggreko and Barr Construction have been in the spotlight for their work, others are now emerging, including Nomadix Media, a Glasgow-based digital signage and marketing company who showcased their wearable CitiWalker. Read more on page 11.

Linda also mentions NVT Group, the Bellshillbased technology integrator, run by Stephen Park Brown, who became the systems integrators for the Glasgow Games.

“Hamish Fraser, business development >>

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INTERVIEW

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director at NVT, spoke at one of the first Commonwealth Games exporting events we held. Hamish shared with the audience that NVT didn’t really see themselves as an exporter but the more his company became engaged with the process, the more they saw the opportunity for aggressive growth.”

Hamish Fraser says in a Legacy2014 publication: “We are using our expertise to maximise the technology required for a modern global event. The games contract has opened up opportunities for young people to gain valuable training and we are committed to creating a legacy through our development of apprenticeship opportunities.”

Scottish Enterprise was able to connect NVT Group with the guys from the Gold Coast and that introduction will hopefully bear fruit for NVT and Scotland, as the city of Gold Coast host the next games in 2018.

Among the Scotland House events was Textiles and Telemetry: New Innovations in Textile Design, which looked at how tartan weaving was once an innovation in its time and how body sensors can be woven into sports clothing to give real-time feedback on athletes’ performances, plus events on renewables and oil and gas, delivered in partnership with Highlands and Islands Enterprise.

“At all of our events, we had representation from across the Commonwealth and the globe. We wanted to make a strong commonwealth connection and to go wider too,” explains Linda Murray.

In all, this cluster of events have done much to showcase Scotland’s strengths across a number of sectors, this has reinforced our expertise and opened doors for future exporting and business. Linda Murray says that the early responses have suggested a real passion from visitors for Scotland as a great place to visit and importantly a great place to do business.

An evaluation of this legacy activity is ongoing.

This has now to be turned into longer term and sustainable business opportunities which will maximise the benefits for business and Scotland.

“Everybody who has responded said that Scotland was at least as good as they thought, but many people have been genuinely blown away by what Glasgow has to offer from a business perspective,” she says. n

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From Smart Cities to Nando’s brilliance: the Commonwealth Business Conference shines in the sun for exporting opportunity “Sport unites us. It brings us together as competitors and fans,” said Lord Kelvin, chair of the Glasgow 2014 Organising Committee and one of Scotland’s best known businessmen. “It is Scotland’s biggest ever celebration of sport and culture. All 71 nations and territories of the Commonwealth are in one place, that’s a rare and valuable opportunity.”

In the splendid setting of Glasgow University, over two gloriously sunny July days, the Commonwealth Games Business Conference took place before the Opening Ceremony, organised by the Scottish Government and Scottish Enterprise. Lord Smith told the representatives from across the Commonwealth that sport transcends nationality, language and economics. First Minister Alex Salmond also welcomed visitors saying it was an outstanding opportunity to showcase Scotland’s businesses. He said Scotland had never had a higher international profile because of all the events in 2014. The business event was streamed live with several panel discussions, facilitated by John Humphrys. Among them a session on Smart Cities, with Vokler Buscher, a director of Arup; Darren Scott, the director of economic development for City of Gold Coast; Nora Senior, the chair of Weber Shandwick and chair of the Scottish Chambers of Commerce; and Professor Anton Muscatelli, the principal of Glasgow University.

“The changes that are coming for cities are around water, waste, energy, transport and assisted living, because people are calling the city ‘a system’. It has now been identified as a £400bn export market for UK businesses because you just can’t build cities the way we have in the past.

There are resource and environmental constraints, the sheer number of people living in cities means we need innovation to deliver cities in a different way,” said Mr Buscher.

Robert Brozin, the entrepreneurial boss of Nando’s, the popular restaurant chain, was an inspirational highlight. He shared his philosophy which was to make money and have fun. The South African accountant set up Nando’s with Portuguese chef Fernando Duarte 27 years ago.

Of its 1,100 restaurants, 90% are in Commonwealth countries with 26 in Scotland.

“It wasn’t something we did in a strategy session,” said Robert. “It just somehow came out.”

“We are completely different. One of the corner stones of our business is we are people-centric.

We have a complete and utter faith in the people. It is the people that make the chicken.”

He added: “To me, in life, you need war-time generals, people who will back you up in times of real stress. We’ve two of them here today in Scotland. I also went out to our restaurants and saw our people: the shiny eyes and the Scottish energy was unbelievable. I didn’t realise the energy of the Scots. To feel the energy of Glasgow, Edinburgh, Dundee and St Andrews was absolutely phenomenal. It doesn’t happen without the right war-time generals in place.”

He talked about standing out in the market. The architecture was built on cheeky advertising that created the spirits, while their design had to set them apart from other fast-food outlets.

“We put a great design into the look and feel. We call them chicken temples.”

He said it was about changing people’s lives: one chicken at a time, and that people need to be inspired, adding “Business needs to ask: ‘How are we impacting and truly changing their lives?’”

The company has become a major supporter and buyer of local African art, sending it to outlets around the world, this has helped change the way the world thinks about Africa.

Nando’s has also been working on major charitable projects, particularly in Mozambique to help fight malaria, with members of staff spraying against the mosquitos.

Robert Brozin was generous with his time and Linda Murray of Scottish Enterprise was able to arrange meetings with other conference speakers, colleagues and delegates.

“He was very inspirational. He told me he enjoyed his time in Glasgow and on return to South Africa continued to watch the sport including seeing SA make it to the semi-final of the Rugby Sevens and he has come up with some interesting business ideas involving Scotland and Scottish produce – which will remain secret for now!”

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INTERVIEW

>> NomadiX Media woos the visitors at the Glasgow Games Guerrilla marketing guru Mark Evans sees plenty of international growth opportunities for his business – but he is building from the ground

One of the most striking aspects of Glasgow’s bustling street life during the 2014 Games was the wearable CitiWalker system clearly visible above the heads of the crowds.

The Glasgow based digital signage and marketing company, NomadiX Media, shortlisted as best start-up in the BQ Scottish Export Awards 2014, were test-driving this latest mobile version – and got rave reviews.

“The Glasgow Games were a monumental success for the city,” says Mark Evans, the founding director of Kommando Experiental Marketing and the man behind NomadiX. “Since the Games, I’ve spoken to a lot of potential business people south of the Border.

They all agree Glasgow did a fantastic job.

Everyone is talking about the buzz of the city – that’s great for companies like NomadiX.” During the Games, NomadiX Media had six people wearing the highly advanced iWalker system working in the busiest shopper areas of the city centre with their CitiWalker initiative.

The latest wearable and elevated 19” mobile

high definition screens, operated by ‘trained brand ambassadors’, were launched on July 17, a week before the Games and were highly visible throughout the city. The screens were used by the likes of the Scottish Police, Famous Grouse and City of Glasgow Council. Every minute, 10 six second adverts or infomercials were displayed on synchronised rotation. The system is 3G and wireless-enabled, so the content can incorporate live Twitter feeds and QR codes.

“For example, Famous Grouse were advertising their Visitor Experience in Crieff on the screens and offering a free bus from a key location in the city. Our team could then point people in the direction of the city centre departure point.”

Mark Evans says: “The most important thing with our digital advertising is there is a human involved. It allows people to ask questions about what they are seeing on the screen.

With an event swarming with visitors, this is incredibly useful.”

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The CitiWalker system includes a facial recognition system which gives the marketer and client the ability to measure the audience.

“The facial detection will differentiate the audience by gender and four age groups – child, young adult, adult and senior.

“It has been a perfect pilot for our Glasgowbased international company. We are trying to get into a slipstream of interest. We are evaluating new franchise opportunities across each city in the UK whilst keeping the momentum going in Glasgow. The CitiWalker service has proved to be successful and there is an appetite among businesses in Glasgow to utilise the technology to target and measure their advertising in the second largest shopper destination outside London. So when we approach the Olympics Committee for the Rio Games in Brazil we can approach key people who will support our exporting drive.

The 2014 Games have been an excellent opportunity for us to build a viable and honest case study on a product and technology that is new and fresh. It fits into Glasgow’s reputation as a creative hub of excellence.”

NomadiX Media, supported by Scottish Enterprise, is also working with international partners in Colombia and South Africa and looking at potential franchise opportunities in Europe.

“It’s now about making sure we have enough product to satisfy orders as they come in. We are now offering CitiWalker across the UK on a city by city basis, as well as offering a franchise opportunity. The system has been fully tested in Glasgow and performed very well.”

“We’ve had to go out and carve out this opportunity. We offer a service that is reliable but, as a guerrilla marketer as I am, it’s about taking positive advantage of situations when and where they arise. That’s what you have to do. It’s paid off being part of these fantastic Games.” n

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>> On your marks for more global sports success The success of the Glasgow Games has given Scottish companies an edge in the booming global sports market. Kenny Kemp meets the man tasked with helping firms grab a bigger share of this market

The immaculate delivery of Glasgow 2014 is a gold-plated boost for Scottish businesses – and there are genuine export opportunities in the ever-expanding global sports market.

Scott Chalmers is tasked with making sure that the interest and enthusiasm generated in Scotland’s winning companies does not dissipate. He was not surprised by the outstanding success of the Glasgow Games and believes that the organisational excellence and delivery is exactly why Scottish companies have a unique window of opportunity in the booming global sports market.

“It’s been ultra-successful. The Glasgow Games were planned extremely well and executed flawlessly. The Glasgow people have sport in their blood and we knew they would embrace it from the word go. I never doubted it. Apart from that, the companies involved were on the ball and delivered what

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was required to the highest spec. We had the technical knowledge to make it new and exciting.”

According to PwC, the sports business market is thriving with revenues of $145bn by 2015, helped by a rebound in television advertising, sports on pay TV channels, and the recovery of financial services and growing attendance. In Glasgow, 96% of spectator tickets were sold.

The first of Scottish Enterprise’s 17 events at the Commonwealth Business Conference in Scotland House was to help dynamic Scottish businesses hear about the international sporting opportunities in Russia, Brazil and South Korea.

Scott Chalmers was at the forefront of this and he will be helping Scottish companies make the most of the Glasgow and Ryder Cup success, as part of Legacy 2014. Scott, who joined the Merchant Navy at 17, is a Glasgow-

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born globe-trotter who spent years travelling with a major oil firm before returning to join the Revenue & Customs when it merged to become HMRC. He then joined the Scottish Government taking on a number of roles and, for the past two years, has been working with Scottish Development International, the international arm of Scottish Enterprise, in trade and investment services.

“While global sports events are usually run by athletes, and specific sports administrators, people forget that a major event – on the scale of the Olympics or Commonwealth Games – requires the build, the infrastructure and the planning which takes up to seven years, from winning a bid to going live.”

Scotland now has the bragging rights to say that it can deliver – which is a great market opportunity.

“There are lots of other things to do to make a major event happen other than purely the physical infrastructure, there is transport logistics, energy provision, ticketing, security and provision of accommodation and food and drink,” he says.

“For example, we’ve shown we are very good at the security side in Scotland and the UK, handling large numbers of people without too much disruption. It is a growing aspect and we’re the best at what we do in Scotland.”

He reckons Scotland has also proven it can marshal the project management skills to deliver.

“We have been able to show we can deliver major sports events on time and on budget.

The main Glasgow facilities were sitting awaiting the Games to happen months ahead of time, unlike in other high-profile sporting events where venues were unfinished. It

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means that athletes and spectators can simply enjoy the event and get into it because they don’t need to fret about something being unfinished.”

The future is looking extremely good for Scottish companies of all sizes with genuine global ambition.

“My eye is always on the companies who can go international. They may already be successful companies in Scotland and the UK. The point we want to make is: ‘If you can do it here, then go and do it abroad now, and we will help you’.”

Scottish Development International has the global networks across 28 offices, including Brazil and the Middle East and, more recently, in Ghana, and extensive support is only a phone call away.

“We want Scottish companies to get out there and make money, bringing it back, so we can have a successful economy and country,” says Scott.

He points to companies, such as Cobbs bakery group, part of Cobbs restaurant and hotels, based in Drumnadrochit, Inverness-shire. The Highland company makes its cakes and bakery products for a variety of markets, and has recently found success in the sports market.

It is now looking at exporting.

“Cobbs has been growing from strength to strength in the global sports market domestically, supplying to open golf championships, the Ryder Cup and the Commonwealth Games and they are exactly the kind of business we want to see doing well in the international market – and hopefully we can help them,” says Scott.

The point is that major sports events require much more than well-built stadiums and slick transport, they need the graphic designers, the bottled water providers and the food and drink brands for a variety of people from the high-end corporate to the family outings.

“The best part of the global sports market is that it is open to all sectors, all sizes. You just need to have the will and determination to go out and deliver. We also know that these projects are going ahead. They are announced and will happen, so this gives businesses a head start to put business plans together to target these markets.”

Then once a firm is in the door, and proven

Scott Chalmers

The best part of the global sports market is that it is open to all sectors, all sizes.

You just need to have the will and determination to go out and deliver it can deliver, then it builds on the success for future sporting events. He cautions that there is a limited shelf-life in this feeling-good factor, so now is the time to keep moving.

“Once the market sees you being a success at an event, they will remember you for the next events. Once you have global business sports on your company CV, it helps you jump forward for future tendering.”

London 2012 was a springboard for many

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INSIGHT

Scottish firms who won contracts which have taken them through to Glasgow 2104. Now it is a case of using this knowledge for the global games that are inked in for the next ten years, including the football World Cup in 2022.

“We are heartened because we’ve seen a number of Scottish companies emerging from the woodwork who have previously never looked abroad.”

So where is SDI assisting?

“One of my big pushes is Qatar, who plan to spend $200bn in the build-up to the FIFA World Cup in 2022. I wouldn’t mind a percentage of that coming to the Scottish economy! If we have companies that have proven they can deliver in Glasgow, then they should be out there in Qatar.”

He says SDI will be helping get Scottish firms out to the Middle East, through its office in Dubai, and a partnership with UKTI, and speaking to the right people, then it is up to the Scottish firms to sell their wares in a competitive market.

Of course, each sporting event is unique, but Scott says that there is a ‘project cycle’ that is similar to all major events, from early construction of transport networks, stadium and athletes villages, and media centres, through to the games delivery with IT and energy expert, then the games themselves.

“Our expertise is helping companies jump in at the right time of the project cycle, when it is the right time to tender for the upcoming contracts.”

There are even opportunities for the Olympics in Brazil in 2016, which Scott says still offers Scottish companies a foothold, particularly in food and drink and in mobility and disabled access. Members of the Brazilian Olympic Games organising committee were in Glasgow. But they will have to move quickly if they haven’t already become involved. But if they miss out, the great news is that there are a host of other events on the horizon, including the next Commonwealth Games on the Gold Coast of Australia in 2018.

“This is a constant cycle. It’s a chance for our companies to show their expertise. The tendering process for Australia is already up and running – and firms can register on the website, just like Glasgow.” n

SPECIAL FEATURE | AUTUMN 14

CASE STUDY

AUTUMN 14

JET-PROPELLED EXPORTING Alba Power in Aberdeenshire have proven that commitment to the customer – wherever they are around the globe – is the best way to win international business Bearded Campbell Archibald looks resplendent in his blue kilt, and matching jacket and waistcoat. He has few qualms about using his heritage to help in the battle for exports.

He admits that the stature of a plaid-wearing Scotsman travelling abroad captures a lot of glimpses – but it can be a wonderful marketing tool too.

As sales director of award-winning company Alba Power, he is a difficult man to tie down in Scotland. He is also President of Alba Power’s US operations in Houston.

“If you are serious about exporting, you have to meet your clients regularly. That’s been essential for the growth of Alba Power. It means a lot of international travel, but the benefits are that clients know exactly who they are dealing with. In my case, it’s a kilt-wearing Scotsman whose word is his bond and who ensures we deliver on excellence every time.”

Gas and power turbines drive heavy industry across a number of sectors and these sophisticated pieces of kit require maintenance and upgrades to keep them working efficiently. Alba Power, based in Netherley, has won plaudits as one of the most entrepreneurial exporters in Scotland. While Alba Power might not be the biggest firm in the repair and reconditioning of the RollsRoyce turbine such as the Avon, Olympus and RB211, they have been continuously striving to give the best service.

The company began in 1997, set up by former Rolls-Royce engineers who understood a lot about aero-derivative and power generation turbines, both on and offshore.

“The original idea was to provide independent maintenance for gas and power turbines globally – with most of the turbines made

by Rolls-Royce. Our standards are incredibly high and we are fully accredited ISO9001,

SPECIAL FEATURE | AUTUMN 14

ISO14001 and ISO18001. We are massively customer-driven,” explains Campbell.

The export opportunity came through BP in Norway back in 2004.

“We had a small project and used this to build up the business, proving that we could deliver exceptional service,” he continues.

Membership of Aberdeen and Grampian Chamber of Commerce opened more doors and Alba Power have been helped by Scottish Enterprise. SE’s regional account manager Colin Turnbull is recognised as helping Alba and introducing them to SMAS, the Scottish Manufacturing Advisory Services in 2012.

In 2012, Fergus Ewing, the Energy Minister, visited the Netherley plant to see how Alba Power had grown its export base, recently including the marine and defence industry.

“A lot of these turbine assets are hugely expensive to replace. Some are reaching the end of their life cycle. We have demonstrated we can renovate and maintain these assets and often provide newly-designed Alba Power spare parts. It means extending the life of these major pieces of kit,” he said.

It has also given the team a great deal of

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insight into how clients’ operate, so that when a turbine is undergoing maintenance, Alba Power provides a temporary replacement to prevent costly outages and down-time.

In the last few years, the company has been working with Petrologics in Houston where they have developed a ‘complete package over-haul’, where the entire insides of a turbine can be re-engineered to substantially increase its operational life. This represents a significant return on investment for customers.

Terry Alderton, the managing director who has built the business with Campbell, says: “We know what our customers want. These heavy industrial turbines are often mission critical, if they go down, it can cost thousands of dollars an hour. We keep the plants running.

“We are innovative. We’ve developed an App so the customer can take a photo of a spare part and zap it back to us to see if it is in stock.

We can then dispatch an engineer with that part and install it often on the same day.”

“Although our main workshop facilities are based to service the North Sea offshore market, we can bring innovative, cost-effective gas turbine solutions to the global market and indeed over half of our business now services the US and the Middle East,” he adds.

The 14-acre site in Scotland, has a 4,000sq m facility with build bays, horizontal and vertical balance machines, comprehensive tooling, clean lines and inspection areas, as well as an extensive spares storage area. The team in Netherley, where all engines are repaired, includes: Neil McKenzie, general manager; Grahame Martin, global business manager; Michael Johnston, head of global sales, and George Kelly, business development manager; Steve Scott, controls manager; Chris Field, production manager and Alan Watson, field supervisor.

There have been recent appointments in the US, Andy McClare, who will run the operation, and Sean McClare, sales service engineer.

The firm has also taken on both apprentices and graduate engineers.

Last year it had a £13.3m turnover with exports representing 51%. n

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INSIGHT

>> The Gulf States are open for Scots with international trade in mind The Gulf region is shaping its smart future with a series of major infrastructure projects where Scottish companies can find excellent international opportunities.

“There are very good markets in the Gulf Cooperation Council (GCC) states going through tremendous growth at the moment.

There is a lot of money being spent on significant transport projects, which are driving the economy in this part of the world,” says Colin Crabbe, senior manager of the High Growth Markets Unit at Scottish Development International.

Notable projects include Dubai gearing up for Expo 2020, the World Cup in Qatar in 2022, while Saudi Arabia is building the multi-billion dollar Haramain high-speed rail project, lining Medina, Mecca with Jeddah.

Colin Crabbe says there are also numerous oil and gas projects where Scottish know-how will be required.

“A welter of economic activity is making the Gulf a very exciting place. While there are headline infrastructure projects, there is an incredible amount of depth within each of these which offers sub-contracting opportunities for specialist companies,“ he says.

The economies of the Gulf State remain very healthy, enjoying continued economic growth.

EY’s Rapid Growth Market survey, which looks at 25 markets in the region, pointed out in July 2014 that UAE, Saudi Arabia and Qatar are at the top in terms of stability and low in risk.

“All the information coming out indicates that these three countries are very stable – and therefore good places for Scottish businesses. If I look back to 2010, at the start of the Arab Spring, Dubai benefited considerably from being a safe haven, and having the availability of office, infrastructure and residential complexes for people who wanted to relocate there from places that were not quite so stable,” says Mr Crabbe,

who spent a number of years in the region.

“Scotland’s firms do have the capabilities to take up some of these challenges. We will see a massive expansion of five-star hotels in Dubai towards Expo 2020 and this is a great opportunity for our world-class food and drink and hospitality sector. These top-grade hotels will be looking for high-end produce which is something Scotland excels at. There will be a lot of opportunities for Scottish companies to benefit from what is going on.”

The feel-good factor from the Commonwealth Games also shows that Scotland has an excellent track record in project management and event planning and delivery.

“The UK is still held in high regard – after the success of both the London and Glasgow Games – and we have a slight edge there because it is fresh in people’s

Such links enhance the ability of doing business in the Gulf because Scottish firms can be seen more often and make meetings at short notice.“Business people are familiar with the instantaneous business in that part of the world. Meetings tend to be called at short notice and they like to see people there frequently. They like to make friends with people before doing business. The ability to get there quickly certainly helps in the early stages of doing business.”

Colin Crabbe says Scottish companies new to the region must pay heed to the business culture in the Gulf.

“It is not a cut-and-dried culture where you show your offer in a slick and efficient way which addresses a topic. It is much more about building up trust and friendship before they will listen to your business proposal.”

Once the business connection is established,

The UK is still held in high regard – after the success of both the London and Glasgow games – and we have a slight edge there because it is fresh in people’s minds minds. So we have the ability to show off our expertise.”

Direct flights from Scotland, especially to Dubai, are hugely important for Scottish business.

“Business has gone in both directions when the Emirates flight started from Glasgow, and we will see similar trends with Qatar flights going into Doha, while Etihad has expressed an interest in coming into Edinburgh in the near future. I think these connections will absolutely benefit Scottish businesses.”

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Scottish firms should be looking at setting up a permanent office in the Gulf, he says. Meantime, Scottish Development International, with its regional office in the UK consul in Dubai, and the British Centres for Business (BSB) can help establish connections with a ‘touch-down’ service in Dubai and Abu Dhabi. Joe Hepworth is the chief executive officer working with Colin Crabbe in the Gulf. This allows companies to set up very quickly, get the appropriate visas, so they can carry out work. n

SPECIAL FEATURE | AUTUMN 14