We conducted this research in response to a recognised research gap within the West Midlands in understanding the impact of international trade with the world's emerging economies. The research includes these topics:
- Trade in services.
- Routes to market and internationalisation.
- Trade analysis.
- Diversification of exports and markets.
- Market opportunities.
- Barriers.
Findings from this research will inform policies and strategies developed by UK Trade and Investment (UKTI).
Key headlines
Trade in services has become an important part of international trade. The lack of reliable data at national and regional level is still an issue to be overcome though. The few sub-national figures available highlight that potential opportunities exist for the West Midlands in ‘other business exports’, more specifically legal, accounting and management consulting.
Entering international markets tends to be driven by serendipity and relying on one mode of exporting – selling.
The number of firms exporting to European Union (EU) countries is much lower than those who export to outside the EU for all UK regions. However, the value per exporter to non-EU countries is significantly less. The West Midlands has a similar number of exporters to the North West and East of England, but the value per exporter is notably lower.
The current perception of other regions being more successful in diversifying their export trade is not strictly true. In the last decade none of the five regions studied have been able to change their export base.
The West Midlands has been successful in diversifying the destination of its exports.
The West Midlands has a notable and increasing share of UK trade with China. Despite data limitations, exports from the West Midlands and other UK regions are likely to be dominated by a small number of large companies. In the West Midlands, exports to China and Russia are led by road vehicles, which infers that our regional exporting performance could be reliant on Jaguar and Land Rover, as opposed to the region's performance as a whole.
There are business and market opportunities for exporting organisations. However, there are also a series of barriers to be overcome. Businesses recognise that the most common barrier is to identify who to make contact with in the first instance and the marketing costs associated.
Report
Analysis of economic links between the West Midlands and emerging economies (pdf, 1.12mb)
Data
West Midlands trade dataset: