State of the Region – do exports offer you an edge?

INTERNATIONAL trade is being heralded as a key driver for rebalancing the economy, but are Yorkshire business leaders planning to increase exports in 2012 given the crisis in the Eurozone and other global markets? 

Take TheBusinessDesk.com’s State of the Region survey and help paint a true picture of the business and economic landscape in what has been a landmark year.

Ongoing issues in the Eurozone, as political leaders look to stabilise economies in Greece, Italy and other countries plagued by huge debt levels, has created major headlines.

Chancellor George Osborne yesterday told the House of Commons that the Eurozone crisis was based on a lack of confidence in the ability of countries to deal with debt.

But has the situation created opportunities, rather than challenges, for Yorkshire companies to increase their international presence and have the emergence of the BRIC economies fuelled possibilities for growth?

[FORM: 53]

TheBusinessDesk.com is delighted to be running this milestone project in association with our lead sponsor, law firm DLA Piper, and which is also supported by accountancy group PwC and the CBI.

Sarah Day, managing partner at DLA Piper’s Leeds office, said a proportion of the UK’s economic recovery over the last 18 months had been driven by growth in export markets and said the Government had made steps to promote and support activity here.

“But with renewed economic turbulence in Europe and the US, this is looking increasingly fragile in these traditional markets,” she said.

“The relative weakness of the pound, exacerbated by further quantitative easing, should give UK-based companies an increased edge in export markets, but the Euro has remained remarkably resilient and, in any event, there is a narrowing window of opportunity to exploit this.”

Ms Day (pictured left) said there was continued concern that exchange rates will impact unfavourably on international exports, and if a loss of confidence in the Euro drives investors towards the Sterling, it could lead to a less favourable exchange rate implication for British exporters.

“Whilst the Eurozone is still a vital market for the UK, many businesses are looking beyond those parameters with countries like China emerging as prime targets. It will be interesting to see just how many Yorkshire businesses feel they will be affected by the Eurozone crisis and what proportion are putting plans in place to combat and diversify by exploring emerging markets.”

[FORM: 53]

Arif Ahmad, partner at head of private business for Yorkshire at PwC, said: “While the Eurozone crisis is showing no signs of letting up, Europe remains an important region for UK exporters to focus on.
 
“Economic growth forecasts in BRIC countries (Brazil, Russia, India and China) are soaring away – a recent PwC report has forecast that these countries will account for 40% of world GDP growth during 2011 and 2012. Companies need to look further afield than their traditional markets.”