Manufacturers forecasting surge in exports – EEF

Key findings included the expectation that 70% of firms anticipate that exports will increase in 2012; that 90% of companies export to emerging markets; 50% expect such exports to to increase in 2012 ; and that exports to China and India will increase by up to half within five years. However, EEF says the survey also throws down a challenge to government to provide the framework to support this potential and increase exports to meet the chancellor's £1trillion target. In practical terms this meant that between now and 2020, the UK will need to match the annual growth rate of South Korean goods and services exports of nearly 9% a year in the decade prior to the recession in 2008. The survey also highlights the substantial in that industry faces in breaking into new markets. Amost half of companies raised specific trade barriers as an obstacle, with Brazil and Russia proving particularly problematic. A lack of intellectual property protection was an issue in China for 45% of companies while, in contrast, no company reported this as an issue in SE Asia or the Gulf. Poor Credit protection was highlighted as a barrier for 38% of companies. EEF chief economist Lee Hopley said the figures showed that the "march of the makers" was very much underway in export markets. "All the evidence shows that companies with a greater involvement in multiple export markets tend to be better performing. The more companies we can get into this position, the higher the benefits will be for our economy. The challenge for government is to provide the framework to help industry fulfil its growth potential and hit the chancellor's £1trillion target." At RBS, head of manufacturing Peter Russell said manufacturers were accessing new markets and winning export orders, often against strong local competition. This was "testament to the design, innovation and quality of UK manufacturers".