Lead International Trade Adviser DIT North East Simon Crosby Lead International Trade Adviser DIT North East 1 1 1

DIT is the Government Department that supports Who Are We? DIT is the Government Department that supports companies in the UK doing business internationally and overseas organisations seeking to locate in the UK

Our Mission To increase the number of North East companies engaged in international trade To increase the depth and diversity of international activity by North East companies already engaged in international trade – more sustainable exporters

Impact – DIT North East 2015/16 – Significantly Helped: 121 New SME Exporters 541 Experienced SME Exporters 140 Medium-Sized Exporters (£15m+) 2016/17 YTD 90 new exporters (£48.4m) 271 new markets (£99.9m)

Let’s start by taking a look at how we have faired as a region in terms of exports over the last 10 years. Well, as you can see by this chart, pretty well. We have seen exports grow from just over £8Bn in 2004 to a peak of almost £13Bn in 2012 with a fallback to £11.5Bn in 2013. Based on exports for the first 2 quarters of 2014 of £6.2Bn, we are confident that exports should bounce back to about £12Bn for the full year. You can see from this graph how there has been a gradual shift from EU to non-EU markets – so let’s take at that in more detail. 50% Increase

We can see how EU exports represented 62% of the total in 2004 to only 52% in 2013. This shift is consistent with UK exports as a whole with emerging markets playing an increasingly important role. North East exports to Asia have more than doubled from £800m in 2004 to £1.7Bn in 2013 and our overseas trade with Eastern Europe has increased by 60% – so we can see how these regions are fuelling this change. 62% 58%

NE Exports by Major Region (HMRC) To edit click View>Header and Footer NE Exports by Major Region (HMRC) 2013 2014 2015 3 Year % European Community 6,113,632 6,988,966 7,001,603 56 Asia and Oceania 1,692,556 1,392,778 1,561,690 13 North America 1,032,595 1,642,975 1,356,628 11 Western Europe exc EC 935,865 848,497 919,106 7 Middle East & N Africa 428,139 402,998 436,326 4 Eastern Europe Exc EC 877,538 804,768 409,462 6 Latin America & Caribbean 243,004 191,985 244,004 2 Sub-Saharan Africa 270,122 201,578 212,524 Totals 11,593,451 12,474,545 12,141,343 (Value £000s)

2015 – Top 10 Markets Netherlands ` 1,655,232.00 United States To edit click View>Header and Footer 2015 – Top 10 Markets Netherlands ` 1,655,232.00 United States 1,229,300.00 Spain 1,013,818.00 Germany 896,994.00 Belgium 870,727.00 Italy 561,658.00 Turkey 527,228.00 France 473,723.00 China 454,249.00 Russia 372,261.00 (Value £000s)

UK Trade in Services (ONS, excluding travel, transport and banking)

Where Are UK Services Going? (ONS, excluding travel, transport and banking)

A company is 11% more likely to survive if it trades overseas Why Export? 58% of businesses said exporting led to levels of growth not otherwise possible A company is 11% more likely to survive if it trades overseas Companies with an overseas base created an average of 3.5 UK employees (Intl Business Strategies, Barriers & Awareness, OMB Research, 2011)

Companies that Export… Improve financial performance Achieve levels of growth not possible domestically Increase commercial life-spans of products Insulate their business against market/seasonal demands Develop more PR opportunities Attract better staff and have better retention Stay in business longer Have fun!

So Why Wouldn’t You Do It? The Benefits Are Obvious!

Barriers Getting paid Legal & financial Finding customers Paperwork

How Can DIT Help?

Find Customers Export Opportunities Service – FREE – https://www.exportingisgreat.gov.uk/ - 1800 opportunities Overseas Market Introduction Service – activity to your detailed brief, carried out by one of the 150 teams around the world. Trade Missions – organised market visits with pre-planned programmes Funding – up to £2000

LIVE Export Opportunities Luxury chocolates and sweet gifts Sweden Engineering and draughting services Qatar Stationery for schools Australia Technology partnerships (web, e-commerce) India Clinical Training Oman Workwear Poland Rail engineering services Italy Digital Education Tools Ecuador Pharmaceutical collaboration China WWW.EXPORTINGISGREAT.COM

Support Around the World...

Local Companies Recently Helped... Valve manufacturer/supplier – find a commission Agent in Russia Provider of engineering personnel – find a representative in Norway Training company – identify/warm an Agent in Indonesia Project management company – provide overview of energy market in Canada and arrange appointments with end users/EPC contractors Candle-maker – find potential distributors/wholesaler in NE USA

Additional notes: (numbers correspond to bullets on slide) 1. Budget, March 2012 http://cdn.hm-treasury.gov.uk/budget2012_complete.pdf 2. PM statement, Nov 2011 http://www.number10.gov.uk/news/prime-ministers-speech-on-exporting-and-growth/ 3. Lord Green, Exporting for Growth campaign, Nov 2011. http://www.youtube.com/watch?v=6ZHn7ZEWFBg Autumn Statement, December 2012