English and Welsh exports to EU on downward trend

24 July, 2023

The South West’s share of goods exports to the EU was the lowest of all UK regions in 2022 at just 42%, followed by the West Midlands (45%) and East Midlands (49%).

The analysis also shows that some UK regions are seeing a sharp divergence in exports to North America and Asia and Oceania (2) which, according to Make UK, may be linked to sectoral strengths and a trend towards diversification of supply chains with more businesses targeting export opportunities elsewhere.

The West Midlands saw almost a quarter of its exports go to North America (24%) in 2022 compared to 17% to Asia & Oceania, mainly driven by automotive linked exports. Wales also saw a significant difference between the two markets with almost a fifth of exports (19%) going to North America and 11% to Asia and Oceania, mainly linked to the aerospace supply chain in Wales.

By contrast the East Midlands saw a quarter of its exports go to Asia & Oceania and 14% to North America.

In order to help boost exports, especially by SMEs, Make UK has made the following recommendations:

1. Extend the geographical reach of the Export Support Service (ESS). The ESS should be extended to include all key UK export markets, not limited to the EU. In addition, a ‘continuous improvement’ approach to the advice available should be embedded as early evidence suggests in its current form it is a ‘signposting’ service and not for bespoke advisory work.

2. Ensure the package of grants and practical support to assist exporters attend trade shows and similar events overseas remains in step with export market priorities and demands of exporters: Government should consider re-instating the Trade Access Programme (TAP) which was valued by manufacturing SMEs. This would help ensure current programmes meet the demands and priorities of existing and potential exporters.

3. The Export Academy (or similar channel) should create a bespoke financial package to boost the skills base for exporters to improve knowledge in exporting. Company level exporting strategies should be as important as a marketing or business development strategy, however businesses do not have easy access to provision to help build that expertise domestically. Too often business export strategies are underutilised, therefore there is a need to identify partners to build up UK expertise on trade through schools, universities and within business.

1. UK Trade Info – Regional Trade in Goods Statistics (RTS) –

Share of Exports to the EU

https://twitter.com/MakeUk_

https://www.linkedin.com/company/makeuk/