THE North East Chamber of Commerce recently published a major international trade survey, looking at how many North East companies are exporting and the barriers to new growth markets.
The report shows that more companies are targeting the fast-growing economies of the United Arab Emirates and India to increase export sales.
NECC is calling on the government to increase support for regional exporters in the upcoming Spending Review to stimulate economic growth. The EU remains the most popular market for existing and potential exporters.
Despite Europe losing lustre nine out of ten exporters (89%) trade into the EU.
More than half of respondents (57%) sell to Asia
Just over half (53%) trade with non-EU European countries (inc Russia) and (52%) to Middle East and Africa
Of the respondents, 42% sell to the UAE
Exporters are looking for the “next wave” of opportunities
Of the 20 “priority markets” identified by UK Trade and Investment, The United Arab Emirates, Poland, China and India are the most popular growth markets
Of those considering exporting in the next five years, the EU (88%), North America and Asia (both 42%) proved the most popular.
Market knowledge and access are key factors for those considering exporting
More than half of non-exporters (52%) say not having a suitable product or service is the principal reason for not exporting.
Of the respondents, 20% said they had sufficient UK business
7% said they had limited knowledge of commercial aspects of exporting, e.g. credit terms, collections and finance
Another 7% said difficulty sourcing market information and/or identifying export opportunities was an issue
And 23% identified quality of international transport connections (direct flights etc) as barrier to export
NECC policy advisor Helen Hayes, said: “Economic recovery will rely heavily on export success. There is a huge amount of untapped potential in regional companies to expand, but the right support is vital. It is important that businesses have access to local knowledge that can deliver practical contacts, potential partners, customers and supply chains.”