Region sees fall in exports amid weak European demand
THE value of goods exported by companies in the North West fell 8% in the first nine months of this year according to official figures, amid weak demand in Europe, the region’s biggest trading partner.
Businesses in the North West exported £6.4bn of goods in the third quarter of this year. Exports to the EU accounted for 50% of the total, followed by 15% to Asia and Oceania and just under 13% to North America.
Clive Drinkwater, regional director, UK Trade & Investment in the North West said there were some positive signs in the figures, with sizeable increases in exports to China and South Korea.
He said: “UK exports are down 3% overall to £388 billion this year, so the North West is not alone in seeing a decline, but the good news is that we also had the largest drop in imports, which are down 9%. UKTI North West has been pushing hard to grow the number of first time exporters for some time now and my export challenge meant that our region was the only one to actually grow the number of exporting firms last year.
“While there is a drop in EU exports this quarter, our exports to the non-EU are generally holding up well, and our performance in some markets is excellent, with exports to China up 6% to £1.6bn, and exports to South Korea more than doubling to nearly half a billion.
“It is also worth bearing in mind that due to the way that sales are attributed (for instance, sometimes to the place of invoice rather than manufacture), the figures don’t give a complete picture of activity in the North West. ”
Mr Drinkwater added: “However, it is vital that the region’s businesses continue to look for opportunities overseas, and I was pleased this week by the announcement in the Chancellor’s Autumn Statement that the government is to increase support for small and medium-sized UK businesses take their first steps into export, with a £20m package for 2015-16. This will help us to assist SMEs in overcoming the barriers they face by providing specialist regional trade advisors, interactive workshops, grants and much more.”
Commenting on the latest figures, Graham Bond, a partner at business advisers Baker Tilly in Manchester said: “At a time when the Government is looking to boost exports, it’s disappointing to see a decline in exports in the North West so far this year. There also appears to be a strong dependence on exporting to EU countries, and as the Chancellor noted in his Autumn Statement speech, a slowdown in EU and other traditional export markets brings risks.
“Given these latest figures and the new package of measures announced in the Autumn Statement, the region’s businesses should perhaps give some serious thought to their export options. While it’s certainly true that exporting does incur some upfront cost and risks, there are also great opportunities for businesses which are prepared to take the plunge and lots of available support.”
