adminWest Midlands exports have once again reached over £6.5 billion, according to the latest export statistics published today (5 December) by HM Revenue & Customs for the period 1July to 30 September 2013. This equates to an increase of 22% compared to the same period last year.
While there’s been a slight decrease of 0.5 % in exports from the West Midland compared to the previous quarter, this compares favourably with the rest of the country where there has been an overall decrease of 5.4%. In the last year, ending September 2013, the total annual value of West Midlands exports has increased by 14 % to £25.4 billion – the largest percentage increase in the English regions.
China continues to be the region’s largest export market with sales worth over £1 billion, followed by the US, also at just over £1 billion. There were further increases in exports to non-EU markets which now account for 60% of the region’s exports; including increases in exports to Sub-Saharan Africa; the Middle East and North Africa.
Paul Noon, Regional Director for UKTI West Midlands, says:
“These figures show we are continuing to grow our exports at an impressive rate. China is now the region’s most important export market – we are the only English region with a trade surplus with China. While JLR continues to lead the field – 20% of everything the UK exports to China is from JLR – others are also performing extremely well. Delcam has just signed its 2,500th deal in China, while Chinese investment in companies like the London Taxi Company are retaining skills and iconic brands in the region. The opportunities for growth in exports to, and investment from China are very significant. Many smaller and mid-sized firms can benefit from exploring the Chinese market and UKTI is here to help them.
“Although the trend continues upwards compared to last year, the slight dip in exports from the region compared to the last quarter, shows we need to maintain the momentum of success and build on it – whether that’s by trading with our traditional partners in the EU; or by venturing into the high growth markets of China, other Far Eastern countries and Asia. There is plenty of help and support available to local firms – UKTI, Local Enterprise Partnerships (LEPs), Chambers of Commerce, MAS, Growth Accelerator and private sector service providers can all provide support and advice.”
One small local drinks producer who is reaping the benefits of exporting is Oswestry-based, Story Brands Ltd. The firm, which started working with UKTI a year ago, is now selling its range of fruit presses around the world, with overseas sales accounting for half of this growing company’s annual turnover.
Story Brand’s high quality soft drinks are being enjoyed in France, Spain, Poland , Norway, Monaco and Ireland as well as Thailand, Hong Kong and South Korea. Just last week, the company received its first order from China.
Story Brands was set up in 2011 by Julian Sollom and his business partner Jonathan Butler who formerly worked for large drinks manufacturers and in the luxury fine dining markets. The pair spotted a gap in the market for a sophisticated soft drink using sparkling mineral water and natural fruit flavouring. The resulting drink, which is 100% natural, low in calories and additive free, is marketed exclusively to the food service sector.
Quickly realising the export potential of their product, Julian contacted UKTI and joined the Passport to Export programme for new exporters. The firm benefited from a range of services and advice including seminars, training, as well as UKTI supported market visits and exhibitions in Hong Kong and Ireland. The company commissioned market research and met with commercial officers at last year’s Export Week. An action plan was drawn up to prioritise and target new markets.
Julian Sollom, Director and founder of Story Brands Ltd, says:
“We are now in our third year and are seeing the benefits of putting exporting at the heart of what we do. In the twelve months since we started working with UKTI, export sales have increased in excess of £120K.
“We are delighted to have won our first order from China. We sent some samples over in the summer which were well received. Our Chinese distributer said customers liked the premium style and clean taste of our drinks, especially the ginger flavour of our latest product, “Fiery Apple & Ginger.” The order is for a part-container in the first instance, which we hope will lead to further orders in the coming months.
“It takes time to get clearance for food and drink products in international markets but we have now achieved this in some 12 markets to date. Our main markets are in Europe and Asia, but we are currently in discussions with potential distributers in the Middle East and Russia. We’re also looking to conquer the USA and are working with UKTI to do this.
“Our International Trade Adviser, Maggie Neale is extremely knowledgeable and helpful and has been instrumental in us moving our export turnover from 10 per cent to 50 per cent of our overall turnover, with a plan for it to reach an 80 per cent in the near future.
“The light bulb moment for me in terms of exports, came when a presenter at a UKTI conference pointed out that the UK accounts for justoneper cent of global trade. It was at that moment I realised how key exporting would be to our continued growth. Not only does exporting offer us an opportunity to grow our revenues, it also spreads risk across a wider customer base and puts the brand on an international platform. The help and support we’ve had from UKTI has been invaluable in helping us get started and I only hope this service will be able to continue to support new exporters such as ourselves.”
