New data from the British Chambers of Commerce (BCC) Insights Unit, published at the start of International Trade Week, shows a widening divide between the fortunes of different sized UK exporters. It highlights the need for urgent action to help small businesses unlock trade deal benefits.
The research shows sentiment among all exporters remains weak, with most struggling to see improved sales or orders. Only 24% reported increased overseas sales, while 22% saw a boost in export orders in Q3.
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.
Only 22% of all responding businesses saw increased export orders in Q3 – 25% saw a fall, 25% no change.
Looking at either export sales or export orders in Q3 for micro exporters, the pattern is the same.
Only 18% of micro-exporters saw a rise in export sales 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.
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 18th August and 15th September. Over 4,600 businesses across the UK (91% of whom are SMEs) responded online.
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.
Contributing to the research, a micro services business in Cumbria said:
“Having 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 clients…USA due to De Minimis changes. This accounts for 50% of our income.”
Suzanne Caldwell, Managing Director, Cumbria Chamber of Commerce, said:
“The growing disparity between the experience of the UK’s largest and smallest exporters is deeply concerning.
“It underlines Chambers’ 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. “
William Bain, Head of Trade Policy at the BCC, said:
“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.”
