New data from the British Chambers of Commerce Insights Unit, published at the start of International Trade Week, shows a widening divide between the fortunes of different sized UK exporters.
The Trade Confidence Outlook results underline the need for urgent Government action, in partnership with business, to help smaller firms export more. Analysis by the BCC shows a 2% increase in UK exports would increase growth by 0.6%.
This latest data was gathered by the BCC Insights Unit and the UK-wide Chamber network with the fieldwork conducted between 18 August and 15 September. Over 4,600 businesses across the UK (91% of whom are SMEs) responded online.
Looking at either export sales or export orders in Q3 for micro exporters, the pattern is the same.
Only 16% of micro-exporters, businesses with fewer than 10 employees, increased export orders in Q3 (18% in Q2), 27% reported a fall, and 57% reported no change.
In contrast, 42% of large exporters, with more than 250 staff, saw a boost in overseas orders in the last quarter (29% in Q2), 11% reported a decrease, and 47% said theyโd seen no change.
Looking at export sales โ only 18% of micro-exporters saw a rise in Q3 (20% in Q2), 26% saw a fall, while 56% reported no change. By comparison, 42% of large exporters reported increased sales, with 11% reporting a fall, and 47% seeing no change.
The research shows sentiment among all exporters remains weak, with most struggling to see improved sales or orders. Only 24% of all exporters reported increased overseas sales, while 22% of all businesses saw a boost in export orders in Q3.
The survey data underlines the importance of next monthโs budget as an opportunity for the Chancellor to help boost exports. The BCCโs Budget submission is calling on the government to deliver a trade accelerator programme for UK firms, reform customs systems, and consult on a UK carbon border adjustment mechanism.
William Bain, Head of Trade Policy at the BCC, said,ย โThe growing disparity between the experience of the UKโs largest and smallest exporters is deeply concerning.
โIt underlines our call for urgent Government action, in partnership with business, to help smaller firms reap the benefits of trade.
โBoosting exports is the quickest way to grow our economy, and our data should be a wake-up call for policymakers.
โBusiness welcomes the real progress made on trade deals with the US, EU and India in recent months โ and the Trade Strategy, launched at the BCCโs Global Annual Conference in June.
โAs these deals and strategies are implemented, new smaller exporters need greater help to fully reap the benefits.
โNext monthโs Budget is also an opportunity for the Chancellor to take decisive action to boost exports. The BCC is looking to work directly with government on trade accelerator programmes. Weโre also calling for reformed customs systems, and full consultation on a UK carbon border adjustment mechanism.โ
What businesses are saying:
โBrexit continues to impact our European business. Trump has had a major effect on our US sales.โย Small manufacturing firm in East Lancashire
โChallenging times to run a small business that exports globally โ we just canโt cope with another tax raid in the Autumn.โ Small manufacturing firm in Cornwall
โHaving just lost all sales to the EU due to the uneconomical costs of GPSR and packaging registration, we are now facing the loss of one of our main clientsโฆUSA due to De Minimis changes. This accounts for 50% of our income.โ Micro services firm in Cumbria
โIโm not confident as the ability to trade with Europe is very difficult so we lost our markets due to Brexit, and our ability to trade with the USA is very hard and expensive due to tariffs and business uncertainty.โ Micro services firm in the West of England
โContinued problems at ports, which impact imports and exports. Should look to join a customs union with the EU for food, drink and animal products.โ Small manufacturing firm in Ayrshire
โThis year our export business to the US has almost dried up completely after Donald Trump announced the tariffs. Although he reversed them our US customers are nervous, heโll change his mind again. Shipping costs are increasing which is putting off buyers from elsewhere in the world.โ Micro manufacturing firm in the West of England.
Leave a Comment