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Businesses in the East of England should look to China, Russia and Eastern Europe for new export opportunities but be prepared to compete aggressively in traditional markets says report from the economic experts at the East of England Development Agency.
'Trade Insight' from Insight East looks back over the last ten years and charts the progress of sectors and markets. Importantly, it forecasts opportunities and challenges in the future for international trade.
It concludes that the East of England performs relatively well compared to other regions and the services, pharmaceuticals and chemicals sectors are the high-scoring sectors of the economy.
Businesses involved in medical and pharmaceutical products, agrochemicals as well as automotive components and rare metal recycling are potentially set to benefit from increased trade in the future.
Protection of intellectual property will be an increasingly important issue for companies looking to expand into emerging markets especially for the region’s high-tech, chemicals and pharmaceutical industries.
Glenn Athey, director of Insight East said:
"Exports are a crucial part of the regional economy and it is important that we know, in detail, how the different sectors are performing so that we can equip businesses with the support they need to grow. A successful exports economy is a useful barometer because it mirrors the competitiveness of the whole economy in the East of England.
"The report shows that the East of England punches above its weight compared to the rest of the UK in terms of how we compete internationally. But, because of the recession and the historically weak dollar, companies here need to sharpen their competitive edge to trade in still-significant European markets and the US. They need to punch harder and increase their reach further to gain new deals and keep the existing ones.
"It also shows that companies need to be vigilant about protecting their ideas when exporting to countries where the regulatory systems will be different. There are some success stories with the exponential growth in the services and pharmaceutical sectors and these will continue to be growing parts of the economy.
"As a leader in the low carbon economy it is also good news for the East of England that there is massive untapped potential in the US for green technology-related services, the largest market for this sector in the world."
Vic Annells, UKTI international trade director for the East of England said:
"It is clear from the findings of this study that there is a great opportunity for businesses to be more outward thinking and ambitious in the future.
"The Foreign Secretary William Hague recently urged the UK to have more global influence in a world where economic power is constantly shifting. It is therefore pleasing to see that the East of England has positioned itself well, having the third highest number of exporters in England with exports making up nearly a third of the region’s wealth.
"For companies wishing to grow their business overseas UKTI provide opportunities, expert trade advice and support. If approached in the right way, I have seen that overseas trade can transform a business, boosting its productivity and helping it to remain competitive, particularly during these tough economic times. "
Key findings and facts from the report:
The East of England has the third highest number of exporters in England
exports make up nearly a third of the wealth generated in the East of England
the East of England's services exports have shown no signs of drift, while services exports in the South East and the North West declined sharply in 2008
the US is the largest market in the world for 'green' goods and services
the value of services exports has grown in real terms by 81 per cent to £11.4 billion in the same period, much faster than goods
services exports are a crucial growth engine of the region’s economy accounting for an estimated 10.2 per cent of wealth generated in the East of England in 2008
the services sector comprises: Other Business Services (comprising Legal, Accounting and Management Services; Property Management Services; Engineering and Other Technical), Financial Services and Travel
high-end chemical and pharmaceutical industries have nearly doubled their level of exports over the last ten years (£2.8 billion to over £5.6 billion)
China is on the rise – it leapt from 30 to 9 in the ranking of trade partners
the 'top ten' country destinations for East of England exports have changed with China and Japan taking the place of Canada and Sweden in 2009
Singapore, Russia, Poland and the Czech Republic have particular trade potential for the East of England.
The full report is available at www.insighteast.org.uk
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