Member Article

North East economy growing through exports

The North East economy is continuing to grow with the help of international trade as latest statistics revealed the total value of exports in the last year has risen by 5.33 per cent, compared to a national figure of -3.42 per cent.

The latest quarterly export figures released by HMRC for July to September 2014 show that £2.916 billion worth of goods were exported from the region, an increase of £168 million, or +6.11 per cent compared to the same period last year.

Whilst the quarterly figure was slightly less than for the previous three months of the year, there was a 1.4 per cent increase in the 12-month rolling total, from £11.99 billion up to end of June 2014 to £12.17 billion in the 12-months up to the end of September 2014.

The North East also remains the only English region with a consistent positive balance of trade, exports greater than imports, with the figure increasing to £4.45 billion.

The HMRC statistics show that the Netherlands remains the largest single market for North East goods with a 12-month export value of £1.59 billion up to the end of September 2014.

Exports to the EU also grew slightly, by around 3 per cent, with the share of total North East exports to the EU at around 55 per cent of all exports compared to the previous year. Nationally around 51 per cent of all exports are to the EU.

The region’s top five industry sectors in the last 12 months were: Road vehicles (including air cushion vehicles) £4.72 billion (+£171 million or +3.8 per cent); Organic Chemicals £812 million (+£71 million or +9.6 per cent), Specialised Machinery £788 million (+£411 million or +109%), Medicinal & Pharmaceutical Products £1.7 billion (+£150 million or +9.7per cent) and Iron & Steel £1.2 billion (-£88 million or -6.9 per cent).

Among the many North East businesses that are already exporting for growth is Eliesha Training Ltd, in Newcastle, a leading supplier of leadership and management development programmes.

The company already boasts a host of clients across the UK and Europe and signed up to UKTI’s Passport to Export programme to explore other markets further afield, including the Australasia region and took part in Market Visits to Australia and Singapore earlier this year.

UK Trade & Investment (UKTI) Regional Director, David Coppock, said: “The North East is continuing to see growth in many export markets, which is clearly good news.

“But we cannot be complacent and UKTI will be continuing its efforts to work with partners to help ensure the region’s companies have the support and expertise they need to succeed in the global marketplace.

“Yesterday’s Autumn Statement included details of a new package of support to help small and medium-sized businesses take their first steps into export with £20m of funding in 2015-16. This will help SME’s become independent exporters and help them grow their businesses.

“It will mean UKTI’s International Trade Advisers will be able to offer more help to first time exporters, helps others already exporting break into new markets and keeps the North East focussed on the 2020 Export Challenge set by the Government.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →