In harsh world, region finds keen markets

Apr 22 2008 By Andrew Hebden, The Journal

EXPORTS have long been a crucial ingredient in the economic mix of the North East – and never have they been more important.

With the credit crunch bearing down on the UK, businesses here have generally bucked the mood of doom and gloom that has hit home elsewhere.

And the continued success of the region as an exporter of goods is playing a big part in that success.

Last month, figures from HMRC revealed that the North East exported £1bn more goods last year than a year earlier, at the same time as total exports from the UK fell by 10%. The total value of exports from the region rose by 13%, from £8.5bn in 2006 to £9.5bn in 2007.

In contrast, seven other English regions recorded a fall, including near neighbours Yorkshire and Humberside.

The news was announced at the Tees Valley leg of the regional heats of the North East Business Awards at Teesside University on March 6.

And it was fitting that the announcement was made in the Tees Valley, home of most businesses in the North East processing industry.

This cluster is worth £10bn in sales to the region every year and is home to a large number of international businesses which have settled in the North East. International trade director for UK Trade and Investment in the North East David Coppock said the recent statistics showing the region had bucked the trend for exports during 2007 were significant.

“Clearly 2007 was a very tough year for exporters around the UK and against that background the increase in export value recorded in the North East reflects huge credit on those companies in the region doing international business,” he said.

One NorthEast director for business and industry Ian Williams said: “This report is further evidence of the growing strength of the North East economy, which has outstripped UK average annual growth for the past three years.”

The HMRC figures highlighted particularly strong growth in the emerging economies, with exports to Russia up 133%, Brazil 62%, China 30% and Japan up 289%.

The two major markets for North East firms remain the United States and the Netherlands, where exports both exceeded £1.3bn in 2007.

VALUE OF NORTH EAST EXPORTS

(£000s)

1 USA 1,346,139

2 Netherlands 1,321,239

3 France 721,966

4 Germany 707,028

5 Italy 577,329

6 Russia 516,736

7 Spain 505,067

8 Belgium 412,882

9 Irish Republic 370,210

10 Japan 362,947