When we imagine exporting, we often focus on the selling of physical things to other countries – cars, food products, pharmaceuticals, clothing electronics etc.
This ignores 80% of the UK economy, which largely comprises the vast services sector – financial services, professional scientific and technical services, culture tourism transport and hospitality, education and training.
George Cowcher, Economic Development & Strategic Trade Specialist, opens discussion on the challenges and potential for trade in services now, and following Brexit
Many companies engaged in delivering services have realised that they could operate in other countries.
Service exports are growing at nearly 2% per year and generating a healthy surplus which partially offset the groaning deficit in the balance of payments. In addition increasingly high value manufacturing products are being turned into services through servitisation where the value in the product is through leasing and paying for care and maintenance.
Service exports are growing at nearly 2% per year
With Brexit looming much attention has been given to preparing for the future of manufacturing imports and exports, supply chains, tariffs, stockpiling strategic supplies and components and ensuring transport routes remain open. Little attention has been given to how the service sector will cope. This is a grave mistake.
All companies, including those who export services must have an export strategy and be ready to meet the challenges and new opportunities afforded by being outside the EU. It is certain that new markets will emerge and some existing ones will become more challenging.
Have you reviewed your export strategy and ensured that it is relevant in 2020?
Get in touch with International Trade Matters Ltd to engage with our experienced specialists who can offer help and advice through a range of programmes and sessions.