West Midlands tops overseas trade league as exports rise 22%
WEST Midlands exports exceeded £6.5bn for the period July to the end of September, according to latest export statistics – a 22% increase compared to the same period last year.
HM Revenue & Customs said while there had been a slight decrease of 0.5 % in exports from the West Midlands compared to the previous quarter, this compared favourably with the rest of the country where there was an overall decrease of 5.4%. In the last year, ending September 2013, the total annual value of West Midlands exports has increased by 14 % to £25.4bn – the largest percentage increase in the English regions.
China continued to be the region’s largest export market with sales worth over £1bn – a figure boosted by the strong performance of Jaguar Land Rover – followed by the US, at just over £1bn. There were further increases in exports to non-EU markets which now account for 60% of the region’s exports; including increases in exports to Sub-Saharan Africa; the Middle East and North Africa.
Paul Noon, Regional Director for UKTI West Midlands, said: “These figures show we are continuing to grow our exports at an impressive rate. China is now the region’s most important export market – we are the only English region with a trade surplus with China.
“While JLR continues to lead the field – 20% of everything the UK exports to China is from JLR – others are also performing extremely well. Delcam has just signed its 2,500th deal in China, while Chinese investment in companies like the London Taxi Company are retaining skills and iconic brands in the region. The opportunities for growth in exports to, and investment from China are very significant. Many smaller and mid-sized firms can benefit from exploring the Chinese market and UKTI is here to help them.
“Although the trend continues upwards compared to last year, the slight dip in exports from the region compared to the last quarter, shows we need to maintain the momentum of success and build on it – whether that’s by trading with our traditional partners in the EU; or by venturing into the high growth markets of China, other Far Eastern countries and Asia.”
He said support continued to be available from bodies such as UKTI, Local Enterprise Partnerships (LEPs), Chambers of Commerce, MAS, Growth Accelerator as well as the private sector.
One firm benefitting is Oswestry-based drinks producer, Story Brands Ltd. The firm, which started working with UKTI a year ago, is now selling its range of fruit presses around the world, with overseas sales accounting for half of the company’s annual turnover.
Its drinks are sold in France, Spain, Poland, Norway, Monaco and Ireland as well as Thailand, Hong Kong and South Korea. The company has now received its first order from China.
Story Brands was set up in 2011 by Julian Sollom and his business partner Jonathan Butler who formerly worked for large drinks manufacturers and in the luxury fine dining markets. The pair spotted a gap in the market for a sophisticated soft drink using sparkling mineral water and natural fruit flavouring. The resulting drink, which is 100% natural, low in calories and additive free, is marketed exclusively to the food service sector.
Quickly realising the export potential of their product, the firm contacted UKTI and joined its Passport to Export programme for new exporters.
Julian Sollom, director, said: “We are now in our third year and are seeing the benefits of putting exporting at the heart of what we do. In the 12 months since we started working with UKTI, export sales have increased in excess of £120K.
“We are delighted to have won our first order from China. We sent some samples over in the summer which were well received. Our Chinese distributer said customers liked the premium style and clean taste of our drinks. The order is for a part-container in the first instance, which we hope will lead to further orders in the coming months.
“It takes time to get clearance for food and drink products in international markets but we have now achieved this in some 12 markets to date. Our main markets are in Europe and Asia, but we are currently in discussions with potential distributers in the Middle East and Russia. We’re also looking to conquer the USA and are working with UKTI to do this.”
