Export Market Shows Way Ahead For Scottish Economy

While official data from the Scottish Government shows that, with growth of 0.2%, the economy north of the border exited recession in the final quarter of the last year, confidence remains low, with the service sector in particular feeling the effects of faltering consumer confidence.

However the research also claims that Scotland’s export industry improved significantly over the past 12 months, with figures showing the value of goods sold overseas rose by 3.5%.

Finance minister John Swinney commented at the time: “These figures highlight the success of Scottish companies competing in global markets.

“Increasing support for exporters and Scottish businesses looking to expand across the globe is vital to protect our recent emergence from recession, and a key part of our economic recovery plan.”

Les Hill, managing director of Ellon-headquartered LFH Engineering, shares both the minister’s confidence and his eagerness to promote Scottish presence within the global marketplace.

The company, which began trading earlier this year, exports around 80% of its manufactured products and expects that, during its first year of trading, exports will account for around £2 million of the company’s sales. With a healthy order book and a growing number of international clients, the company also expects this figure to more than double over the next five years.

Mr Hill said: “Along with many other industrialised countries, Scotland has seen a steady and disappointing decline in the export of manufactured goods.

“To address this worrying trend we feel that it is crucial that manufacturers – and perhaps in particular exporting manufacturers – should be at the centre of future government support. While the food and drink sector appears to be faring well, there are significant opportunities in the renewable energy sector and already it appears that these crucial opportunities may be lost to companies in Western Europe – companies which have been quicker to recognise and invest in that market.”

As signs point to the Scottish economy slowly emerging from recession, some sectors appear to have suffered more than others with some industries stagnating – experiencing falling order levels and many companies facing working capital challenges.

Mr Hill believes that companies must take matters into their own hands during such an important time. He said: “As a firm, we have already established a small portfolio of key blue chip original engine manufacturers throughout Western Europe – including Norway, Denmark, Germany and France – and we believe that cementing such relationships is key, not only to our own survival but to economic recovery.

“This growth has seen us put a great deal of time into attending a number of trade shows throughout Europe, which is a huge commitment for such a young company. Although the prospect of investing so much time and resources in attending such events may seem daunting we feel it is of utmost importance to connect with our key markets as soon and as often as possible.

“We have to grow our profile and attending and exhibiting at trade shows is one of a number of important tools that we are committing to utilise. The majority of our key target market is now, located in either Europe or the Far East but we are confident that this will in fact work to our advantage over time as we showcase the expertise and resources Scotland can offer.

Mr Hill added: “I strongly believe a vibrant manufacturing sector is vital to boosting Scotland’s economy as the sector attracts both innovation and design and has the potential to offer highly skilled, well paid work as well as significant training opportunities for generations to come.”