EXPORTING MADE EASY
Exporting has always been a balancing act between opportunity and risk. For UK companies, 2025 presents both renewed optimism and persistent headwinds. Global demand is recovering, trade deals are opening new doors, and digital channels are expanding market access. Yet exporters continue to face significant barriers that affect margins, growth potential, and even business survival.
In this blog, we’ll dive into the top challenges facing UK exporters in 2025, explore why they matter, and—crucially—look at practical strategies for mitigating them. While each sector has its own unique hurdles, there are three broad challenges that dominate the landscape:
Customs complexity and non-tariff barriers
Rising costs and supply chain disruption
Finance, cash flow, and payment risks
We’ll also touch on labour shortages, sustainability pressures, and market volatility. By the end, you should have a clearer picture of what’s ahead—and how to prepare your business to thrive.
Challenge 1: Customs Complexity and Non-Tariff Barriers
Why It’s a Problem
For many UK exporters, customs processes remain one of the most frustrating and costly obstacles. Since Brexit, exporters trading with the EU (the UK’s largest export market) face extra paperwork, rules of origin checks, safety declarations, and in some sectors—such as food and agriculture—strict sanitary and phytosanitary (SPS) controls.
Even beyond Europe, non-tariff barriers (NTBs) continue to be a burden. Examples include:
Differing product standards: e.g. electrical goods needing separate certification for the EU, US, and Asia.
Labelling requirements: language, nutritional information, recycling instructions.
Health and safety checks: export health certificates for food and drink, medical product approvals.
Diverging regulations: UK-specific standards no longer aligned with EU rules, creating duplicate testing and compliance costs.
For SMEs, navigating this maze is particularly tough. It increases costs, slows deliveries, and sometimes leads to goods being stuck at borders. According to the British Chambers of Commerce, over half of exporting SMEs still report customs procedures as a “significant barrier” in 2025.
Mitigation Strategies
Invest in Customs Expertise
Hire or train staff with customs knowledge.
Consider using a customs intermediary (broker, freight forwarder) for complex markets.
Attend HMRC or Chamber of Commerce training sessions on rules of origin and paperwork.
Use Digital Tools
Adopt customs management software that integrates with your ERP system.
Platforms like Descartes, KlearNow, and DHL’s digital trade portals automate declarations and reduce errors.
Pre-Certify Where Possible
Explore Authorised Economic Operator (AEO) status for faster clearance.
Apply for advance rulings on classification and valuation to avoid disputes later.
Cluster with Other Exporters
Join local export clubs or trade associations. Pooling knowledge about customs procedures reduces the learning curve.
For example, food exporters in Yorkshire share insights about EU SPS paperwork, saving each company from repeating the same mistakes.
Market Diversification
While the EU is vital, consider diversifying into markets with simpler processes (e.g. Gulf states or Australia, where new trade agreements are in place).
Challenge 2: Rising Costs and Supply Chain Disruption
Why It’s a Problem
UK exporters face an ongoing “cost crunch.” Inflation, higher wages, and volatile energy costs all squeeze margins. Shipping remains unpredictable: the Red Sea crisis in late 2023 disrupted global freight, while container rates from Asia to Europe surged again in early 2025. Add in raw material price swings and you have a perfect storm.
For exporters, the implications are serious:
Delivery delays lead to penalties or cancelled contracts.
Price competitiveness is undermined when foreign rivals face lower input costs.
Holding higher stock to hedge against disruption ties up working capital.
SMEs are particularly vulnerable, as they lack the buying power and supplier diversification of larger firms.
Mitigation Strategies
Supply Chain Mapping and Diversification
Map your supply chain end-to-end to identify weak links.
Diversify suppliers across regions to reduce dependency on a single source.
For example, a machinery exporter in Birmingham shifted from relying solely on Chinese components to a mix of suppliers in Poland, Vietnam, and the UK.
Use Digital Supply Chain Tools
Platforms like Shippeo or Project44 provide real-time visibility into shipments.
AI-powered forecasting tools can predict disruptions and suggest alternatives.
Negotiate Flexible Contracts
Build escalation clauses for fuel surcharges or shipping costs into customer contracts.
Where possible, lock in long-term agreements with logistics providers for stability.
Nearshoring and Onshoring
For critical inputs, consider sourcing closer to home, even at a slightly higher cost, to improve reliability.
A food exporter in Kent began sourcing packaging from Portugal instead of East Asia to reduce lead times.
Collaboration with Logistics Providers
Work closely with freight forwarders who specialise in your region. Their local knowledge can help reroute goods quickly in case of disruption.
Challenge 3: Finance, Cash Flow, and Payment Risks
Why It’s a Problem
Even when exporters secure orders, getting paid on time and maintaining cash flow can be difficult. SMEs often wait 60–120 days for payment, particularly in markets where late payment culture is entrenched. Add exchange rate swings, the risk of non-payment, and the need for upfront working capital to fulfil export orders, and it’s clear why finance is a top concern.
UK Export Finance (UKEF) and banks offer solutions, but awareness and accessibility remain limited for smaller firms.
Mitigation Strategies
Export Credit Insurance
Protects against non-payment from overseas buyers.
Can make it easier to access bank finance, as receivables are insured.
Invoice Financing and Factoring
Use trade finance providers to unlock cash tied up in unpaid invoices.
Platforms like MarketFinance or Funding Circle are increasingly used by SMEs.
Forward Contracts and Hedging
Lock in exchange rates for major contracts to avoid currency volatility.
Banks and fintech providers (Wise, Revolut Business) offer cost-effective hedging tools.
UKEF Schemes
Explore government-backed schemes that guarantee loans, working capital, or bonds for export contracts.
Even micro-SMEs can now access support, not just large corporates.
Payment Terms Negotiation
Don’t assume long credit terms are non-negotiable. Be transparent with overseas buyers about your limits.
Offer small discounts for early payment.
4. Labour and Skills Shortages
Exporters report difficulty finding staff with expertise in customs, foreign languages, digital trade, and logistics. Upskilling existing employees and partnering with local universities/apprenticeships can help.
5. Sustainability and ESG Requirements
Overseas buyers increasingly demand proof of sustainable practices—carbon footprint data, ethical sourcing, recyclable packaging. SMEs should start tracking and reporting on ESG metrics early, before being locked out of tenders.
6. Market Volatility and Geopolitical Risk
Global politics remain unpredictable. Trade disputes, sanctions, and new tariffs can emerge with little notice. Exporters should keep abreast of government trade alerts and avoid overexposure to one market.
Conclusion: From Barriers to Resilience
The challenges facing UK exporters in 2025 are real: customs red tape, spiralling costs, and financial pressures can all threaten competitiveness. But they are not insurmountable. By investing in digital tools, building diverse supply chains, securing finance, and upskilling teams, SMEs can turn risks into opportunities.
The companies that will thrive are not those with the deepest pockets, but those that adapt fastest. Exporting has always required resilience and creativity—qualities that UK SMEs have in abundance.
For those willing to embrace change, the future is not just about surviving these challenges, but about building stronger, smarter, and more sustainable export businesses that can compete on the world stage.