New monitor shows boost in number of UK exporters
New modelling from the Exporter Monitor produced by data group Coriolis Technologies and the Institute of Export & International Trade shows a pick up in January 2022 of the 12 month average for the number of businesses exporting from the UK compared to December 2021.
The Exporter Monitor also shows that, compared to December 2021, these businesses increased the numbers of people they employed and that their revenues were also higher.
Even so, the picture overall is mixed. As a result of the end of the transition period changing the nature of goods and service movements between Great Britain and the EU so that they became exports, the Exporter Monitor data showed a near-doubling of the number of exporters, and accordingly, their revenues and their employees in February 2021.
This is still working through the data. For example, the increases in January this year compare to major drops in the numbers of exporters in January 2021 as a result of Brexit uncertainty; and while the increase in January this year is welcome, it is insufficient in itself to reverse a downward trend evident since April 2021.
We expect the challenges of continuing pandemic-related supply chain delays and the effect of the introduction of customs disclosures for EU importers into the UK to have worked through by the end of Q1 this year. However the average numbers of exporters, their employees and their revenues are still likely to be lower than they were at the end of Q1 in 2021 when record numbers of companies had just become exporters – some of those companies have since changed they way they operate and ceased to export themselves, although they may be using third parties.
Coriolis Technologies chief executive, Dr Rebecca Harding said: “The data shows that UK exporters are still fragile from the joint shocks of pandemic-induced supply chain shortages and the aftermath of Brexit which caused so many companies to become exporters overnight. Worryingly, it is SME exporters that look most vulnerable in terms of future revenues and further financial support in the form of export guarantees and digital trade should focus on the requirements of these businesses.
Insitute of Export & International Trade director general, Mr. Marco Forgione said: “Exporters must be congratulated for navigating their way through what has been a year of many challenges. They, particularly those that are SMEs, need more support from government, to access advice and training to deal with the uncertainty that they face right around the world. The Export Strategy is a good start but this needs to be prioritised right across government. Looking forward, there is an opportunity in so many UK companies having been introduced to exporting this year. Once they are confident in exporting to Europe, and we believe that is increasingly the case, taking the next step, into global markets need not be so daunting.”