Member Article

Export Week: North East SMEs encouraged to scale up activity

With Export Week now upon us, Lloyds Bank Commercial Banking has released a study into the activity of North East SMEs.

The report revealed that export levels are ‘solid’, with 31% of local firms currently selling their goods or services abroad.

For those already trading internationally, this activity generates two fifths (39%) of their total sales turnover

At the close of H1 2015, 70% of businesses in the North East forecast an increase in their export activity during H2, which may in part be driven by concern over weakening domestic demand for products and services. Almost 30% of the region’s businesses said this was a worry.

Nearly a fifth, 18%, predicted their export levels would remain the same, whilst more than one in ten, 12%, forecast a decrease during H2.

Despite recent turbulence, the Eurozone continues to be a key target market for North East firms, with 52% of businesses increasing exports to the territory

Sales to the US and Canada and Asia and the Pacific are also set to increase by 27 and 18 per cent by the end of the year

Leigh Taylor, area director for SME Banking in the North East, Lloyds Bank Commercial Banking, said: “Establishing or scaling-up export activity can be a daunting prospect for businesses, but the benefits are many – as the local firms already trading overseas can testify.

“We are working with UKTI, through a strategic partnership, to support small firms’ export ambitions and provide insight, support and introductions.

“To underline our commitment to boosting international trade, we’ve pledged to grow our provision of trade finance to SMEs by 25 per cent.

“I’d encourage all local businesses looking to develop their export strategy to get involved in one of the many excellent Export Week events being run in the North East.”

Export Week, five days of events organised by UK Trade & Investment (UKTI), aims to promote the benefits of trading internationally, supporting companies at the beginning of their export journey or looking to increase their international business.