World class opportunities - September 2011
It may come as no great surprise to businesses in this area to learn that a new survey carried out by British Chambers of Commerce shows that UK exporters are showing signs of strength.
The findings of the DHL/BCC Trade Confidence Index shows that despite weak UK GDP growth in Q2 2011, export growth continues to rise both in orders and in business confidence – albeit at a slower rate than it did in late 2010/early 2011.
That’s the good news, on a slightly less buoyant note however is the indication that despite this growth, a slightly jittery view of the economic outlook means that exporting businesses are still holding back on investment and recruitment.
The index surveyed a thousand exporters across the UK, including the North-east, and also carried out an analysis of export documentation. Generally across the country trade documentation data showed a 3.6% increase on the same quarter last year which is the second highest level it has been at since the third quarter of 2008, suggesting that companies’ export sales continue to grow.
It also confirmed that exporters’ confidence that their turnover and profitability would improve had increased since Q1 2011
But that upward trend has been tempered by uncertainty in external factors including the Eurozone debt crisis and the ongoing fragility of the UK’s own economy; cash flow also remains an issues for many companies, particularly some of the smaller firms. That means that despite the positive trend, British exporters are still reluctant to invest and to take on more staff.
David Frost, Director General of the British Chambers of Commerce says it is essential that the Government help British business gain that confidence to export and invest and ensure that support schemes designed to help new and growing exporters are both easy to access and easy to understand.
Closer to home, the Smart Exporter programme administered by this Chamber as part of Scottish Chambers International and SDI is a funded programme which can help new and inexperienced exporters take the first step into international sales through providing advice and support on a range of issues. Our international documentation service alone helps more than 500 companies send their goods around the world.
And it is vital that we see our exports grow because this rise in export growth is masking the true picture which is showing that the trade gap between imports and exports is widening. The June figures (the most recent available) published by the Office of National Statistics (ONS) showed a deficit between the two was £4.5billion compared to a £4 billion deficit in May.
That means that UK exporters may be showing signs of strength but if that gap is be reduced we must continue to increase the value of our exports.
The rewards and the potential for companies which make the move are significant – in the first three months of this year alone, exports to Asia grew by 17.7% and to Australasia by 19.6%. The North American market grew by more than 16%.
In terms of numbers – the annual value of international trade in the form of exports and imports is now estimated to be in excess of US$12 trillion.
Surely a prize worth going that extra mile for.
Strategy review
The Scottish Chambers of Commerce has had input in the Scottish Government’s review of its Economic Strategy, first published in 2007.
Scotland, and the world, has changed dramatically since the paper was first published. We are still trying to pull ourselves out of recession; public spending is being reined back, businesses’ relationships with their banks have deteriorated and the housing market is stagnant. Internationally, several Eurozone economies are facing crisis and the United States has had its credit rating downgraded for the first time in its history.
An updated strategy needs to take account of that and of the economic realities facing businesses operating in a global marketplace and must set out the ground rules for Scottish Government strategy over the next five years.
The SCC response took a look at the relevancy of the Government’s central purpose and its strategic objectives, and also its growth productivity, participation, population, solidarity, cohesion, sustainability targets. It also looked at what the Scottish Government could be doing to support business to deliver on our national growth aspirations?
The review is expected to be published later this month.
It may come as no great surprise to businesses in this area to learn that a new survey carried out by British Chambers of Commerce shows that UK exporters are showing signs of strength.
The findings of the DHL/BCC Trade Confidence Index shows that despite weak UK GDP growth in Q2 2011, export growth continues to rise both in orders and in business confidence – albeit at a slower rate than it did in late 2010/early 2011.
That’s the good news, on a slightly less buoyant note however is the indication that despite this growth, a slightly jittery view of the economic outlook means that exporting businesses are still holding back on investment and recruitment.
The index surveyed a thousand exporters across the UK, including the North-east, and also carried out an analysis of export documentation. Generally across the country trade documentation data showed a 3.6% increase on the same quarter last year which is the second highest level it has been at since the third quarter of 2008, suggesting that companies’ export sales continue to grow.
It also confirmed that exporters’ confidence that their turnover and profitability would improve had increased since Q1 2011
But that upward trend has been tempered by uncertainty in external factors including the Eurozone debt crisis and the ongoing fragility of the UK’s own economy; cash flow also remains an issues for many companies, particularly some of the smaller firms. That means that despite the positive trend, British exporters are still reluctant to invest and to take on more staff.
David Frost, Director General of the British Chambers of Commerce says it is essential that the Government help British business gain that confidence to export and invest and ensure that support schemes designed to help new and growing exporters are both easy to access and easy to understand.
Closer to home, the Smart Exporter programme administered by this Chamber as part of Scottish Chambers International and SDI is a funded programme which can help new and inexperienced exporters take the first step into international sales through providing advice and support on a range of issues. Our international documentation service alone helps more than 500 companies send their goods around the world.
And it is vital that we see our exports grow because this rise in export growth is masking the true picture which is showing that the trade gap between imports and exports is widening. The June figures (the most recent available) published by the Office of National Statistics (ONS) showed a deficit between the two was £4.5billion compared to a £4 billion deficit in May.
That means that UK exporters may be showing signs of strength but if that gap is be reduced we must continue to increase the value of our exports.
The rewards and the potential for companies which make the move are significant – in the first three months of this year alone, exports to Asia grew by 17.7% and to Australasia by 19.6%. The North American market grew by more than 16%.
In terms of numbers – the annual value of international trade in the form of exports and imports is now estimated to be in excess of US$12 trillion.
Surely a prize worth going that extra mile for.
Strategy review
The Scottish Chambers of Commerce has had input in the Scottish Government’s review of its Economic Strategy, first published in 2007.
Scotland, and the world, has changed dramatically since the paper was first published. We are still trying to pull ourselves out of recession; public spending is being reined back, businesses’ relationships with their banks have deteriorated and the housing market is stagnant. Internationally, several Eurozone economies are facing crisis and the United States has had its credit rating downgraded for the first time in its history.
An updated strategy needs to take account of that and of the economic realities facing businesses operating in a global marketplace and must set out the ground rules for Scottish Government strategy over the next five years.
The SCC response took a look at the relevancy of the Government’s central purpose and its strategic objectives, and also its growth productivity, participation, population, solidarity, cohesion, sustainability targets. It also looked at what the Scottish Government could be doing to support business to deliver on our national growth aspirations?
The review is expected to be published later this month.
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