Over a third of Yorkshire firms which trade internationally planning to enter new markets
More than a third of businesses in Yorkshire that trade internationally plan to enter new export or import markets over the next one to three years, according to new research from Lloyds.
Data from the latest Lloyds Business Barometer showed that 34 per cent of Yorkshire’s internationally trading firms plan to expand their export or import territories, while none expect to reduce their activity over the same period.
The figure comes against a national average of 45 per cent of firms which intend to enter new export and import markets.
Alongside entering new markets, 25 per cent of firms in Yorkshire plan to expand their presence in the markets where they already operate, while the same proportion intend to diversify away from their current trade partners.
Of the firms in Yorkshire that trade internationally, 44 per cent say their activity has increased over the past 12 months, compared to 18 per cent reporting a decline. This compares with 47 per cent of businesses nationally reporting an increase in international trade activity over the same period.
Steve Harris, regional director and head of Mid Corporate North and Scotland, at Lloyds, said: “Yorkshire has a strong base of internationally active businesses, with two thirds of firms trading overseas and more than two in five reporting increased activity over the past year.
“That momentum is encouraging, particularly at a time when global trading conditions remain challenging.”
Two thirds of businesses in Yorkshire trade internationally, either exporting or importing goods and services, according to Lloyds.
Just five per cent of internationally trading businesses in the region say they face no significant barriers to increasing their activity.
Tariffs and trade agreement uncertainty emerged as the biggest barrier to expanding international trade among firms in Yorkshire, cited by more than a third of businesses. This was followed by the cost of international expansion, cited by 31 per cent, and a lack of government investment support or incentives, cited by 25 per cent of firms.
More than four in five firms in Yorkshire say affordable access to trade finance facilities would be important to their future international trade plans, compared to a national average of 84 per cent.
Two in five businesses in the region say their access to trade finance is limited or expensive, despite 73 per cent reporting some form of access to these facilities.
Mr Harris added: “Uncertainty over tariffs and trade agreements is clearly making it harder for firms to plan ahead, while the cost of expansion can add further pressure. Businesses will need clear advice, suitable finance and support with the practical requirements of international trade if they are to manage these challenges and make the most of opportunities in new markets.”