NE Export Survey: Positive Outlook

An export survey of a wide cross-section of North-east business has revealed that the vast majority of exporters are positive about the future of their international business.

The results of the 2004 North East of Scotland Export Survey show that 85% of exporters expect the value of their international activity to grow in the next two years.

The biennial survey, carried out by Aberdeen City Council on behalf of Business Gateway International, also showed that well over half of existing exporters intend to develop new markets, with Libya, Russia, the United Arab Emirates and Kazakhstan indicated as the top markets targeted for future export development.

Several previously unranked countries have been identified for future export development, including Latvia, Lithuania, Italy, Estonia, Uzbekistan, Poland, Indonesia and the Czech Republic

In total, 616 companies from the North-east of Scotland, representing a wide range of business sectors, responded to the survey – 425 exporters and 191 non-exporters — making it one of the most comprehensive surveys of its kind.

The main findings also show:

- There are 14 countries to which 100 or more North East companies currently export
- USA, Norway, Netherlands and France remain the principal export markets
- USA is the most important market for 83 companies
- Algeria and Equatorial Guinea have emerged as significant export markets
- The main export markets for companies in Aberdeenshire are still Western Europe and North America; for Aberdeen-based companies the geographical spread remains much wider
- 43% of exporters stated that exports comprised at least 30% cent of their total turnover
- Competitive prices and exchange rates were the main problems experienced by current exporters
- Among non-exporters, Norway, USA, Netherlands and France are the principal target markets for companies intending to begin exporting.

This is the seventh Export Survey undertaken by BGI, who provide North-east businesses with a co-ordinated approach to a wide variety of international business support services. BGI members include Aberdeen City and Aberdeenshire Councils, Scottish Enterprise Grampian, Aberdeen and Grampian Chamber of Commerce, Scottish Development International, and Scottish Enterprise Energy Team.

Rita Stephen, Chair of BGI and Head of Economic Development with Aberdeen City Council, said: “The Export Survey is carried out to gather information about current exporting activities, future exporting intentions and also to provide an update on previous surveys.

“Analysis of the findings of the survey will help Business Gateway International to reassess its export development priorities and, where appropriate, modify the type of service it offers to local companies.

“The members of BGI use this valuable source of information to tailor their services to the changing needs of businesses, and target trade missions and other business development projects to countries which have been identified as future markets.”

The top markets identified for development in the previous survey were the USA, Brazil and West Africa. Over the past two years a number of initiatives have been successfully implemented by the members of BGI to help companies break into these markets, including trade missions, exhibitions, learning journeys, seminars and trade clinics.

The survey also identifies problems encountered by businesses in their exporting activity, plus key areas of support required from BGI, which most often was cited as financial assistance and overseas exhibitions and missions.

The report also states that:

- 352 companies responded to both the 2002 and 2004 export survey
- 73 of these companies have successfully begun to export to new markets they had identified in the 2002 survey
- Between the 2002 and 2004 survey, 78 companies have increased the value of their exports whilst 37 have experienced a drop in value

The percentage of respondents currently exporting has increased slightly from 67% in 2002 to 69% in 2004. There has also been an increase in the number of exporters intending to expand their international business activity, from 55% of all exporters in 2002 to 57% in 2004. However, the number of non-exporters intending to begin exporting has decreased from 18% of all non-exporters in 2002 to 14% in 2004.

Sectors represented by businesses responding included: Agriculture, Biotechnology/Life Sciences, Construction, Defence/Decommissioning, Environment, Engineering, Financial/Legal, Food, Fish & Drink, Freight/Transport, ICT & Software, Medical/Health Care, Oil & Gas, Professional Services, Recruitment/Manpower, Renewable Energies, Tourism, Training/Education.

To receive a copy of the report please visit www.exportlink.co.uk or contact: Lynn Davie, City Development Services, Aberdeen City Council, Tel (01224) 814605, email ldavie@aberdeencity.gov.uk