A plan to boost the North East’s exporting performance after the twin blows of Brexit and the coronavirus pandemic has been published.
The North East LEP has worked with the Department for International Trade and the North East England Chamber of Commerce to publish a report outlining how the region can build its competitiveness, drive higher productivity, and create jobs by increasing international trade.
Global North East: Driving growth in North East trade and exports sets a target to increase the percentage of North East businesses that export goods and services from 6% to 9.5% by 2030. A target has also been set to increase the percentage of gross value added (GVA) from exports from 33% to 35%.
The report hightlights how more than 168,000 jobs in the region are reliant on exporting, with businesses engaged in exporting tending to pay their employees 7% more than the average UK wage. Exporting firms are also 21% more productive compared to the UK average.
North East LEP chair Lucy Winskell said: “The commitment to drive trade set out in the Strategic Economic Plan would create a stronger North East economy and deliver more and better jobs through export-led growth. We therefore want to support more businesses to seek out new opportunities in global markets.
“This report focuses on the areas of the world where we have the most opportunity and the actions we need to take to grow our economy.
“It shows that the impact of the global coronavirus pandemic and the UK’s exit from the European Union has had a severe impact on the region’s economy, so now is a good time to look to the future and make sure we support business to move forward with confidence.
“Whilst we are seeing positive signs of the economy beginning its recovery, we must take a long-term view on how we continue to strengthen the North East’s position and deliver on the targets set out in the North East Strategic Economic Plan.”
The report outlines how the North East exported more than £10bn in goods and £5bn in services each year before the pandemic.
But it said the region’s exports are dominated by larger, foreign-owned businesses and the pandemic has both restricted foreign travel and forced many businesses to concentrate on survival rather than forging overseas trade links. The last-minute Brexit deal has also discouraged many companies from moving into exporting, the report says.
The report recommends working with both sectors and individual companies to get more companies to consider exporting.
Julie Underwood, executive director of international trade at the North East England Chamber of Commerce, said: “The Chamber is delighted to be involved in this important piece of work, which reinforces the vital role exporting plays in our region and how we all need to work together to maximise the opportunities which are available for our businesses overseas.
“To successfully increase exports, we know that a clear strategy is needed which details which sectors and countries offer the most potential and a long term plan to implement this.
“The regional report provides an important step consolidating our collective response and input into how we can drive regional growth through international trade.”
