Member Article

North East exports fall, but still reasons for optimism say UKTI

Exports from the North East have fallen again but there are still signs of optimism with strong growth in some industry sectors.

During the third quarter of 2013 the total value of exports from the region was £2.939 billion, compared with £3.031 billion the previous quarter – a fall of 3.17%.

This gave a 12 month rolling value of £12.346 billion, which represented a fall of 13.68% compared with the 12 months rolling total up to the end of June 2013.

Nationally, the total annual UK exports fell by 0.24% to £298 billion up to the year ending September 2013, compared to the rolling total up to the end of June 2013.

David Coppock, regional director for UK Trade & Investment (UKTI) in the North East, said that while it was disappointing that there had been a further decrease in exports, the annual total still remained higher than the period immediately following the start of the recession and there were signs of strong growth in some industry sectors and specific markets.

He urged companies across the region to follow in the footsteps of successful exporters such as Surreal Creative and to contact UKTI to find out how it can help.

Surreal Creative, a strategic marketing agency in Houghton-le-Spring, now secures more than half of its work from continental Europe after a strategic reshuffle of its business when the recession began to bite in the UK.

Its international clients include one of the world’s leading medical technology companies, Stryker, based in the USA.

The relationship has developed into a position where Surreal handle the creative portfolio for Stryker across Europe. This marks a change in strategic direction to become recognised as an international branding agency and this week, with the help of UKTI, sees the launch of its new digital agency in Porto, Portugal. The event will also herald a rebrand of the business itself to better reflect its international portfolio.

Ian Smith, managing director of Surreal Creative, explained: “When signing up for Passport to Export we initially thought it might be a pipe dream to win clients across Europe. But with the help of UKTI, a well-planned OMIS (Overseas Market Introduction Service) and building up strong links with both the UKTI Lisbon and New York offices we were able to strengthen our vision.

“Having now used Gateway to Growth (G3) and further OMIS support, this helped us identify why Porto was a good base to set up a new arm to the business and also identify potential new clients. Next stop America!”

According to the latest quarterly figures, released on December 5, the Netherlands remains the largest single market for North East goods with £1.531 billion exported in the 12 months up to September 2013.

Exports to nine of the region’s top 20 markets grew during the past 12 months and Thailand was again the region’s fastest growing market with an increase of £376 million or 118.05%, to give a total of £694 million.

South Korea saw an increase of £29m or 36.04% to give a total of £111 million; Turkey saw an increase of £150 million or 33.41% to give a total of £598 million and Sweden saw an increase of £73 million or 29.26% to give a total of £321 million.

Exports of Iron & Steel showed strong growth of 84.45 per cent, around £580 million to give a total of £1.268 billion.

However, there were falls in other sectors among the top five standard industrial classification divisions, including exports in road vehicles, -17.62% to £4.634 billion; Medicinal and Pharmaceutical, -35.15%t to £1.55 billion; Power generating machinery, - 20.52% to £695 million and Organic chemicals, -8.2% to £740 million.

Commenting on the figures, David Coppock, added: “Obviously it is disappointing that the figures have again shown a fall, but the fact remains that the annual total of £12.346 billion still remains more than £1 billion higher than the period immediately following the beginning of the recession through to 2010 when it was £11.338 billion.

“Certain sectors such as Iron & Steel are showing signs of strong growth and we have seen increases in exports to several overseas markets including Thailand, South Korea and Turkey.

“Today’s figures highlight the fact that we cannot afford to be complacent and we need to continue to focus on the opportunities that overseas markets can offer and UKTI is committed to helping companies realise their potential.”

He added: “Surreal Creative is already proving that the North East can successfully compete on the world stage and last month UKTI organised the biggest ever Export Week during which nearly 5,000 companies took part in events up and down the country, including almost 680 delegates in the North East.

“We’re delighted that so many took the time to join us and I hope we were able to inspire and inform them as they take their first steps towards overseas success or exploring new markets.

“But our efforts are not confined to Export Week; and the initiative coincided with the launch of UKTI’s new Exporting is GREAT campaign to encourage more SMEs to take the plunge into international trade.

“The new campaign will be targeting almost three million people nationally to generate 3,000 appointments with UKTI’s International Trade Advisers (ITAs) and drive £1.2bn in export revenue. And with businesses earning £100,000 on average in additional sales within 18 months of working with UKTI, there is significant incentive for firms to contact us.

“We know the UK’s future prosperity will not come from relying on domestic markets alone and exports are vital to our continued growth, which is why we’re committed to helping Britain in the global race.”

This was posted in Bdaily's Members' News section by UKTI North East .