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 they’d seen no change.
Looking at export sales – 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 month’s budget as an opportunity for the Chancellor to help boost exports. The BCC’s 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: “The growing disparity between the experience of the UK’s largest and smallest exporters is deeply concerning.
“It underlines our call for urgent Government action, in partnership with business, to help smaller firms reap the benefits of trade.
“Boosting exports is the quickest way to grow our economy, and our data should be a wake-up call for policymakers.
“Business welcomes the real progress made on trade deals with the US, EU and India in recent months – and the Trade Strategy, launched at the BCC’s Global Annual Conference in June.
“As these deals and strategies are implemented, new smaller exporters need greater help to fully reap the benefits.
“Next month’s 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. We’re also calling for reformed customs systems, and full consultation on a UK carbon border adjustment mechanism.”
Anne White, Head of International Trade and Compliance, Thames Valley Chamber of Commerce says “We support the BCC’s call for a trade accelerator programme and simplified customs procedures. Our region’s export community is driven by SMEs in manufacturing, technology and professional services – precisely those struggling most.
The International Trade team stands ready to continue supporting traders with practical steps that deliver meaningful results for exporters now”.
