The North East Local Enterprise Partnership, in partnership with the Department for International Trade (DIT) and North East England Chamber of Commerce, has published a new report outlining how the region can build its competitiveness, drive higher productivity, and create more and better jobs by increasing international trade.
‘Global North East: Driving growth in North East trade and exports’ sets out the region’s ambition to increase the percentage of North East businesses that export goods and services from 6% to 9.5% by 2030.
It also sets a target to increase the percentage of gross value added (GVA) from the export of good and services from 33% to 35% by 2030.
The new report, which is funded by DIT and published in collaboration with the North East England Chamber of Commerce, has been developed to align with government’s planned Trade and Export strategy, and the upcoming Northern Powerhouse Trade and Export strategy.
Lucy Winskell, Chair of the North East Local Enterprise Partnership, 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.”
Approximately 4,500 businesses in the North East region (North East LEP and Tees Valley Combined Authority areas) currently export goods and services. In 2018, the North East exported £13 billion in goods and a further £7 billion in services. More than 168,000 jobs in the region are reliant on exporting.
The North East LEP’s report highlights businesses engaged in exporting tend to pay their employees 7% more than the national median wage. They are also 21% more productive compared to the UK average.
Richard Baker, Strategy and Policy Director at the North East Local Enterprise Partnership, said: “The government has set out its intention to develop a trade and export strategy later this year and it will be crucial to the long term economic fortunes of the North East that it supports businesses in the region to grow their exporting.
“Businesses in the North East LEP area that currently export goods and services typically generate over £15bn of revenue from exporting each year. We want to see that figure increase, and we want to see more of the region’s businesses actively engaged in exporting, and our region reaching out across the world.
“We worked with more than 50 exporters, trade groups and research institutions to develop this evidence about where opportunity lies, and the set of proposals to strengthen support in the region. It provides a clear direction of travel and starting point to create a stronger export culture and more coordinated set of support services in the North East.
“By increasing levels of international trade we will be supporting government’s levelling up agenda, and in turn creating more opportunities for businesses based in our region, and those looking to invest here.”
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.”
Victoria Gemmill, DIT Northern Powerhouse Regional Team and Head of North East Region, said: “The strategy is a valuable piece of work aligning with our ambition at the Department of International Trade to drive economic growth through trade and investment opportunities and demonstrates the significance of export growth in levelling up.
“Through targeting sector and market specific opportunities as well as building export capabilities of local businesses, we can collectively enable the full advantage of trade opportunities to be utilised to deliver sustainable growth for the region.”
‘Global North East: Driving growth in North East trade and exports’ sets out five strategic priorities for the region, which include developing the export potential of the North East’s growing sector strengths in advanced manufacturing, offshore energy and subsea, healthcare and pharmaceuticals, digital, and knowledge intensive services; whilst focusing on a small number of opportunity markets.
It also sets out the ambition to create an ecosystem in the North East that brings together existing exporting support, providing a joined up and accessible approach for businesses.