Business

Look Outward: The Association of Translation Companies’ Approach to Overcoming Economic Instability

By Raisa McNab

or years now, operating a business in the United Kingdom (UK)’s economy has felt like walking on a tightrope: steady enough to keep moving, but never far from a destabilizing gust of wind. The nation’s headlines swing between modest economic growth, persistent inflation, volatile politics, and an uncertain global outlook. And all the while, the country’s language service companies (LSCs) — operating in the slipstream of global trade — are trying to make sense of what all of this means for their future.

After all, what happens to exporters, trade flows, and sectoral strengths happens to LSCs. A change in the direction of an industry, a shift in government industrial priorities, or the opening of a new export corridor will echo quickly into the realities, opportunities, and vulnerabilities of LSCs. That’s why understanding which sectors will thrive in the coming decade is not an academic exercise, but a survival skill.

Against this backdrop, the UK’s Association of Translation Companies (ATC) has made a deliberate decision to adopt an outward-looking strategy, one that aims to analyze and influence the wider economy rather than focusing solely on the language industry’s own development. Through economic commentary, membership in trade associations, and strategic lobbying, the ATC strives to enable British LSCs to see what’s coming around the corner and respond proactively. And while the ATC’s mission is to support LSCs in the UK, its strategy can be applied in other countries facing similar economic volatility.

An Economy Searching for Its Footing

Over the past decade, the UK has lurched from one economic or political upheaval to the next. The country’s departure from the European Union, known as Brexit, introduced profound structural uncertainty with new trade barriers, realignments in labor mobility, and years of unsettled business confidence. Just as industries began to adapt, the COVID-19 pandemic hit, shutting down supply chains, freezing international movement, and reshaping business models overnight.

Then came a series of political convulsions, including the brief but financially catastrophic premiership of Theresa May, followed by a carousel of leadership changes and policy reversals that undermined institutional stability. More recently, global geopolitical uncertainty — including tariff shifts in the United States and the re-emergence of economic nationalism — has added another layer of unpredictability for exporters and investors.

Today, the UK’s economy strikes an uneasy balance: Gross domestic product (GDP) is growing, but unremarkably; inflation is falling, but still above target; investment flows remain strong, but confidence is brittle; and headwinds like soaring energy costs and global instability continue to buffet the economy. But despite these challenges, the UK remains a global services powerhouse — ranking as the world’s second-largest exporter of services — with services representing the majority of exports and economic output.

What complicates the picture is the UK’s productivity puzzle. Despite decades of policy attention, UK productivity remains chronically low, lagging behind many global peers. The promised productivity surge from artificial intelligence (AI) has not yet materialized, and the national productivity needle has barely moved.

Why an Outward-Looking Perspective Matters

It is precisely because of these complexities that British LSCs must concern themselves with the broader economic picture. Ultimately, the forces shaping the language services market originate outside the language industry. Demand is not created by LSCs, but by the industries they serve. And in a very fast-moving landscape, the picture keeps changing.

LSCs must keep in mind that demand growth within a particular sector will lead to growth in its supply chain. Exporters need translation; global manufacturers need multilingual documentation; financial technology (“fintech”) companies need compliance localization; creative industries need content adaptation; and life sciences need regulatory translation. When these sectors grow, LSCs grow. When they contract, LSCs feel it more quickly than ever.

Moreover, LSCs — primed to support international expansion — benefit from knowing which industries demonstrate the most productivity, as it can be a predictor of future expansion and investment.

These cues are not just context, but vital signals. And reading the signals right is crucial.

For all these reasons, a language industry association like the ATC must do more than just facilitate conversations about pricing pressures, technological change, and supporting a skilled workforce — although this has its significant place. To truly empower LSCs, we need to provide them with trustworthy market analysis, as well as engage with the country’s broader business community. In essence, the ATC’s role is to bring the outside world into our industry’s field of vision — not in abstract terms, but in actionable insight.

The ATC’s Landmark Report

Last year, the ATC released an analysis called “Walking the Tightrope,” which presents current economic conditions in the UK from the standpoint of the language industry. Together with the UK government’s “Modern Industrial Strategy” — which identifies eight areas being targeted for investment in the next 10 years (see “The UK’s IS-8 Sectors” sidebar for details) — it forms a foundation for understanding the future of language services in an economy trying to regain momentum and redefine its global position.

The UK’s IS-8 Sectors

The UK’s Modern Industrial Strategy identifies eight high-potential sectors, called the IS-8, that the government intends to back over the coming decade: advanced manufacturing, creative industries, life sciences, clean energy, defense, digital and technologies, financial services, and professional and business services. For LSCs, these sectors are not simply a priority list — they are a map of where to focus expertise, invest in solutions, and cultivate client relationships.

Advanced manufacturing is increasingly tied to R&D, supply-chain resilience, and international standards. Growth here typically means increased documentation, compliance, and technology localization needs.

Life sciences, with its complex regulatory environment and global clinical trials, requires deep specialist translation capability and consistent investment in linguistic quality and data security.

Creative industries, one of the UK’s strongest export categories, drive high-volume content localization demand as global audiences expand. Government incentives for regional creative clusters suggest even greater diversification.

Digital and technology sectors continue to dominate in market capitalization and employment, and their global orientation

ensures ongoing demand for localization across products, services, and platforms.

Clean energy and defense are poised for large-scale investment, and with it comes cross-border collaboration, public engagement, environmental reporting, and complex technical communication — each requiring multilingual solutions.

The sectoral alignment between the Modern Industrial Strategy and the traditional strengths of LSCs is striking. Regulated industries, creative industries, technology, and manufacturing all appear prominently in both datasets. This convergence suggests that LSCs are positioned not only to benefit from future sectoral expansion, but also to play an enabling role in that growth.

The Modern Industrial Strategy’s emphasis on growth, investment, and international competitiveness means that the IS-8 sectors are expected to expand their global footprints, driving multilingual content, compliance needs, and market-entry support. Meanwhile, the government’s parallel Trade Strategy aims to expand trade agreements and lower barriers, especially for high-value service exports. This again reinforces the need for robust, scalable language support to enable UK companies to bid internationally and operate across borders.

Understanding these eight sectors is not merely a matter of identifying verticals with growth potential; it is about knowledge of the structural forces that will shape them. If LSCs understand the pressures shaping these sectors, they gain a competitive advantage: the ability to offer services that are timely, relevant, and precisely aligned with client needs. While it is tempting to assume that LSCs will automatically benefit when strategic sectors expand, the lesson of the past decade — through Brexit, COVID-19, and geopolitical upheavals — is that reactive strategies are no longer enough. LSCs must anticipate where demand will grow, understand their clients’ economic realities, and adapt service offerings accordingly. This is why “Walking the Tightrope” is more than just economic commentary — it’s a compass for LSCs looking for a way forward.

Involvement With Business Groups

The ATC participates in business associations on both the national and local levels. These are the spaces where business sentiment is aired, where policy implications are unpacked, and where the signals of sectoral direction are felt. In these settings, reading the mood in the room is sometimes as valuable as understanding the data being presented. After all, clients’ anxieties today will become their procurement priorities tomorrow.

At the national level, the ATC is an active member of the Confederation of British Industry (CBI), the UK’s largest and most powerful lobbying and advocacy organization for business, and the Trade Association Forum (TAF), which brings together trade associations from across the country. It is our job to bring back insights from these groups that help our members understand where demand is shifting, which industries are preparing to invest, and where risks may materialize.

The ATC also engages with member companies active in their local and regional Chambers of Commerce, which brings another essential vantage point, especially with small and medium enterprise (SME) exporters. In the UK, SMEs make up 99.8% of the business population and are a central engine of employment and turnover. They are also vastly underrepresented in export activity. The granular intelligence from local members and their Chambers helps the ATC see emerging pressures and opportunities that national-level analysis alone cannot reveal. The conversations across these networks — what keeps clients awake at night, what investments they are delaying, where they face regulatory friction, and how energy costs or tariff uncertainties are affecting their operations — help shape the ATC’s advocacy and guidance.

Reading the Future Through an Economic Lens

National economic shifts have long-reaching effects. Rising interest rates influence investment in research and development (R&D)-heavy sectors. Energy costs shape manufacturing output. Tariff changes alter market-entry strategies. Geopolitical uncertainty disrupts supply chains. Each of these developments indirectly but powerfully affects the flow of multilingual work.

In times of uncertainty, industries may postpone expansion, delay international marketing, or reduce discretionary spending. In times of opportunity, they accelerate these investments, and multilingual support often becomes essential. Understanding these cycles is what allows LSCs to allocate their resources, technology investments, and workforce development effectively.

For LSCs, a firm grasp on the overall economy is not optional, but central to strategic business planning. Knowing which sectors to back, which clients will be poised for growth, and what challenges lie ahead enables LSCs to pivot with confidence rather than react with uncertainty.

The ATC’s decision to face outwards is rooted in the belief that the language services sector must operate with foresight rather than hindsight. Publishing reports is not just about compiling data. Participating in the meetings where industrial strategy, trade policy, and business sentiment are negotiated is not merely about representation. Both are about translation of a different kind: translating the language of business and policy into insights that help LSCs thrive.

Navigating the UK economy may be like walking a tightrope, but LSCs do not need to walk it blindly. With clear analysis, informed advocacy, and strategic foresight, the sector can position itself to not only endure the turbulence, but also help shape the success of the industries it supports.

Raisa McNab is CEO of the UK’s ATC and General Secretary of the European Union Association of Translation Companies (EUATC).

BACK TO ISSUE

Five AI Advancements Shaping the Language Industry in 2024

By MultiLingual Staff

Discover how neural machine translation, speech technologies, dubbing, chatbots, and transcreation are shaping the language industry — enhancing efficiency while maintaining the importance of human…

→ Continue Reading

Elia and ATC launch project manager training course

By MultiLingual Staff

Elia and the ATC are excited to introduce a brand new Project Manager (PM) training course which allows us to help you save time, and…

→ Continue Reading

ATC announces winners of annual Language Industry Awards

By Andrew Warner

This year, the awards gala took place Sept. 22, with a round-up of awards including titles such as “Company of the Year,” “Translator of the…

→ Continue Reading

News
Localization
M&A
Business
Culture
Perspectives
Interpreting
Press Releases
Sponsored
Technology

Weekly Digest
Subscribe
Submit News

General Information info@multilingual.com

Subscription subscriptions@multilingual.com

Advertising
advertising@multilingual.com

Editorial Questions editor@multilingual.com

Privacy Policy

General Information
info@multilingual.com

Subscription
subscriptions@multilingual.com

Advertising
advertising@multilingual.com

Editorial Questions
editor@multilingual.com

Privacy Policy