A NEW study has revealed that UK manufacturing exports are expected to bring around £14.4bn to the Scottish economy in the coming year.
The Export Dividend report, carried out by Barclays Corporate Banking, also revealed that 84% of manufacturing firms with 10 or more employees in Scotland are currently exporting.
Manufacturers who don’t currently export but plan to start could see that yearly estimated income soar to £14.7bn a year by 2030.
Among those who don’t yet export, there is significant demand in Scotland to start doing so with 50% aiming to start selling overseas in 2022.
If they do, Barclays’ economic modelling predicts it could be worth an additional £39m to the local economy next year, and an additional £316m per year by 2030.
Across the UK, British food and drink producers are reaping the highest financial rewards, with £34.3bn in sales on a global scale.
They are followed by automotive manufacturers, with £20.9bn.
UK exporters are also shown to have fared better this year than non-exporters.
Over a quarter (26%) of the research respondents who sell overseas said they had seen ‘significant growth’ in 2021, only 18% of non-exporters said the same.
Meanwhile, manufacturers who export are also more confident about their prospects in 2022 with 88% of exporting businesses upbeat about their growth prospects, compared to 71% of those who don’t currently export.
Non-exporters in the UK are more likely to favour European markets, with 30% saying they would target Germany initially, followed by The Netherlands (24%) and the US (24%).
In contrast, the US is the market that most current exporters (30%) sell to, followed by Germany (26%) and France (26%).
The new findings coincide with the Government’s refreshed export strategy, ‘Made in the UK, Sold to the World’, which was published in November.
Barclays’ research shows that knowledge gaps will need to be narrowed to fulfil its ambitions.
As it stands, far from all manufacturers in Scotland are aware of current or emerging initiatives to encourage international trade, such as the UK’s bid to join the Trans-Pacific Partnership (46%) and the recently signed free trade agreements with Japan (50%) and Australia (36%).
Only just more than a third in Scotland (34%) were aware of the plans to create eight new freeports in England, which offer tax breaks for manufacturers on the import of materials.
However, those familiar with freeports were very positive about the scheme with 71% saying they plan to make use of them once they come online.
Andy Hall, Head of Corporate Banking, Barclays Central Scotland said: “While the Scottish manufacturing sector has endured a tough year, the report released today shows encouraging signs of recovery for Scotland.
“Our exporters have weathered the Covid and Brexit storms and it is pleasing to see a strong demand for their products globally.
“Confidence is high and many Scottish firms are looking to exports to fulfil their growth ambitions next year and beyond, with half of those who don’t yet export overseas aiming to start in 2022.”
