Exports Up, But Rate Slows

Total sales and exports by manufacturing companies in Northern Ireland increased from 2006/07 to 2007/08, however, the growth rate was slower than in previous years.

The latest figures from the Northern Ireland Manufacturing Sales and Exports survey estimated sales by manufacturing companies to be worth £15.6billion in 2007/08, an increase of 5.2% (£774million) in cash prices over the year.

This was a slower rate of growth than that reported for the previous period (2005/06-2006/07), when growth was 6.1%.

Exports continued to represent a vital income for the Northern Ireland economy, with over a third of all sales (35.1%) made by manufacturing businesses generated from international customers.

The value of exports increased over the year by 8.5% (£428million) in current prices to £5.5billion.

However, this represented a lower annual growth rate than the previous annual growth rate (9.7%) over the period 2005/06 to 2006/07.

The rise in exports to the Republic of Ireland reflected its continuing role as an important destination for Northern Ireland manufacturing sales.

As such, it represented Northern Ireland's single most important export market. Exports increased by 10.0% (£150million) this year to stand at an estimated £1.7billion, although the rate of growth was slower than in the previous period (15.3% in 2005/06-2006/07).

Sales to Great Britain accounted for almost two fifths (39.9%) of total sales but growth slowed to 0.4% (£28 million) over the year in current prices, to £6.2billion (from 2.2% growth in the previous inter year period).

Sales outside the UK and Republic of Ireland were worth £3.8billion in 2007/08, reflecting growth of 7.9% (£278million).

Commenting on the figures, Enterprise Minister Arlene Foster said: "I welcome the increase in the value of Northern Ireland's manufacturing exports in 2007/08.

"That said, the onset of more difficult trading conditions at that time, has resulted in a slower rate of growth compared to the previous period.

"It is also clear that trading conditions in the global market place have worsened since last year and companies are increasingly feeling the effects of the downturn. There is undoubtedly more of the same ahead of us as some markets contract and others become more competitive.

"The challenge now is for Northern Ireland to extend its export base in terms of the number of companies selling overseas and for businesses to focus on increasing export levels. Any increase in export sales can help offset the impact of the slowdown.

"It is critical for companies to adopt this approach and optimise all available opportunities to develop high value products and services. Increasing sales in export markets and building market share can help companies emerge stronger and more competitive in the longer term," she concluded.

(BMcC)