Bernard Ginns: Just two per cent of Yorkshire businesses look to export

AN inauspicious start to Export Week for UK Trade & Investment, the Government department charged with helping British businesses ensure success in international markets.

I asked UKTI what proportion of Yorkshire businesses are exporting.

A spokesman came back to say he “doesn’t know the percentage, but... there are approximately 7,500 exporters across Y&H”.

Hide Ad
Hide Ad

I replied that surely UKTI must know the percentage of companies that export. But no answer was forthcoming.

Official estimates show there are 345,000 businesses in Yorkshire. Accordingly, just two per cent of those – 7,500 – are exporting.

That’s T-W-O per cent. I felt I ought to spell that out, like the Final Score announcer on Saturday afternoons when a team has suffered a mauling.

Perhaps UKTI did not respond out of embarrassment. I would be embarrassed too if my key metric was so low.

Hide Ad
Hide Ad

Still, it is hard to blame UKTI for the failure of the 98 per cent to sell their goods and services overseas.

The statistics serve to remind us how difficult it is to rebalance the UK economy away from financial services and the City of London towards manufacturing and the North of England. Still, two per cent is a shocking figure.

UKTI funds 32 international trade advisers in Yorkshire. I would suggest that this level is inadequate. If the Government is serious about boosting exports, it should be closer to 320.

The chambers of commerce are doing a fair job in encouraging international trade with limited resources, but their efforts pale in comparison to our leading European rivals.

Hide Ad
Hide Ad

Lord Heseltine’s report on growth, No Stone Unturned, noted: “In other countries, the private sector and government have co-invested in these institutions over a long period of time.

“We are behind in this regard having chosen a more laissez-faire approach.

“As a result, businesses in these countries seem to be at an advantage in having a simpler and better understood routes to business support and overseas export markets.”

The UK, by contrast, has a plethora of business support organisations and low chamber membership.

Hide Ad
Hide Ad

German businesses, meanwhile, are compelled to join chambers. Consequently, German chambers have 3.6m statutory members.

UK has a patchwork of overseas chamber services, although there are noticeable gaps.

Germany has 117 overseas chambers with 1,330 staff representing German economic interests in 80 countries, serving members and delivering business support.

Crucially, they have impressive representation across the BRIC countries, the markets where UK exporters have struggled to penetrate.

Hide Ad
Hide Ad

Enough about the Germans, you get the point. Except to say that Germany’s trade surplus rose to a record high in September as exports climbed across the board.

Meanwhile, Britain’s goods trade deficit widened in September to its biggest shortfall in a year. Which means that initiatives like Export Week are vitally important, if only to remind us how much hard work needs to be done to fashion an export-led recovery.

The rather uninspiring Business Secretary Vince Cable is in Russia this week, leading a trade delegation of 31 companies covering the retail, construction and manufacturing sectors, including Sheffield Forgemasters.

Mr Cable said: “British small and medium-sized businesses are the lifeblood of our economy.

Hide Ad
Hide Ad

“Many are doing incredible things and selling their services and products abroad. But too many do not realise their global potential. This campaign will help us reach the many businesses across the country that are ready to export and grow but have yet to take the plunge.

“This can be a big step for many businesses and the Government’s expert international trade advisers will guide companies every step of the way, with practical advice and support to find international customers.”

Visit www.exportweek.ukti.gov.uk for more details.

Bid now to become Yorkshire Post Business Editor for the day and experience one of the most privileged positions in UK journalism while raising money for the Alzheimer’s Society in our Christmas charity appeal.

Go to www.yorkshirepost.co.uk and place your bids by Friday.

Related topics: