Greater Manchester businesses urged to exploit growth opportunities in foreign markets

A report released today by New Economy highlights how many firms in Greater Manchester make a significant proportion of their income from export sales – with £7bn worth of goods and services being sold in total.

However, the report suggests that Greater Manchester firms are punching below their weight on the international stage; exporting less in value terms than the city regions of Leeds and Birmingham – although more than Merseyside and the Bristol city region.

The findings of the report show that due to the region’s size there is clearly scope to increase connectivity and further open Greater Manchester’s economy to foreign trade and investment opportunities.

The report’s main conclusions are;

• Despite reductions in resources, Greater Manchester should continue to provide strategic leadership to its firms, and take advantage of the growth opportunities that will continue to exist in Western markets.

• Whilst many Greater Manchester firms evidently already have strong trading and investment linkages around the world, it will be of critical importance for more firms to establish such linkages and for the Greater Manchester economy to secure more inward investment.

• In the medium to long-term, the best prospects for growth clearly lie in the fast-growing emerging economies of Asia, South America, Africa and the Middle East – and efforts to establish firmer linkages with these markets should be prioritised.

Based on the reports findings, New Economy has devised a list of recommendations, including;

• Greater Manchester must establish new trading relationships to further its export performance and take advantage of the significant (and growing) opportunities that the markets of emerging economies offer.

• In addition to the current national export guarantee scheme, the creation of a Greater Manchester export guarantee scheme funded locally, with private sector involvement, would give firms advantages that are unique to the region. This option should continue to be explored with government, following on from discussions already started by the Greater Manchester Chamber of Commerce.

• Increased provision from central government for trade missions and inward investment.

• The Greater Manchester Skills and Employment Partnership should be tasked with working with providers to develop the skills that are required by firms to exploit growth opportunities in foreign markets.

• Continued support for investment and innovation and provision of extra training and information.

Baron Frankal, director of strategy at New Economy, said: “In the current economic climate, we need to take advantage of growth opportunities internationally through exports more than ever. This report shows that Greater Manchester’s recent export performance has been relatively turbulent and that there is still room for improvement. It is therefore important for Greater Manchester firms to establish more trading linkages around the world and to continue securing a good level of inward investment, whilst the domestic economy remains subdued.”

To view the report, please visit: http://neweconomymanchester.com/stories/1108-thinking_new_economy