Region’s exporters bullish on 2018 trade prospects

Exporters in Yorkshire are buoyant about their trade prospects this year on the back of a strong end to 2017.

The latest Business in Britain report from Lloyds Bank reveals that a net balance of 19% of exporters are expecting overseas sales to increase over the next six months.

At the end of last year, a net balance of 28% said their international trade had increased in the second half of the year.

More than two fifths (44%) of the region’s businesses currently export their goods or services – up six points from 38% six months ago and above the national average of 40%.

While some are facing new challenges, with almost half (49%) of Yorkshire’s exporters deciding to focus more on UK sales in light of Brexit, most are optimistic about what lies ahead.

Simon Quinn, regional director for Yorkshire at Lloyds Bank Global Transaction Banking, said: “Yorkshire exporters still see international trade playing an important role in their plans, despite the continued climate of domestic and international uncertainty.

“Judging from Yorkshire firms’ export performances over the previous six months, this confidence is not misplaced and by using international trade as a growth strategy for their business British firms can also manage risk during periods of uncertainty.”

Among Yorkshire firms as a whole, 29% say the biggest barrier to exporting is exchange rate uncertainty, followed by language and cultural barriers and tariffs and quotas.

A net balance of 19% of all businesses across Yorkshire also say the fall in the value of the pound is bad for the economy, while 16% say it’s bad for their business.

Based on their current overseas trading, the current top three most popular partner countries for Yorkshire firms are the USA, Germany and France, with 28, 13 and nine per cent of companies respectively exporting to these countries.

Looking ahead, exporters in the region expect the biggest opportunities for international trade to come from the USA, China, India and Spain.

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