According to the latest Exporter Monitor by
Coriolis Technologies and the
Institute of Export & International Trade (IOE&IT), the number of UK exporters increased slightly in May 2022. “However, this overall growth masks a revenue crisis for micro, small and medium-size exporters. Our data suggest that in May 2022 the number of companies exporting from the UK increased by 1%, that employment in UK exporting firms increased by 4%, and that revenues overall increased by 3%. However, this increase in revenues was accounted for entirely by higher revenues for the largest businesses, obscuring the fact that micro, small and medium-size companies all showed drops in revenues (compared to April) of 4%, 6% and 1% respectively.
“May’s drop in exporter employment and revenues appears to have transferred into the supply chains where smaller and more vulnerable businesses are more prevalent. As the cost-of-living rises, and exporter revenues decline among the nation’s smallest businesses, this will inevitably impact some of them and the number of people they employ. The outlook suggests that June will see a softening of this increase, given the weaker revenues and an overall pattern over the course of the last year of declines in exporter numbers, exporter revenues and exporter employment.”
Rebecca Harding, Coriolis Technologies’ chief executive (pictured), said: “The data suggest that the long-term viability of UK-originating supply chains is under threat from a decline in revenues among smaller exporting businesses. Compared to June 2021 revenues are on average nearly 5% lower, with smaller businesses particularly severely hit. The consequences of this for jobs and for the future of ‘UK plc’ cannot be understated and the fragility of the UK export sector needs to be acknowledged if we are to find practical solutions and restore trade’s role in contributing to GDP.”
Marco Forgione, the Institute of Export & International Trade’s director general, said: “This ongoing trend is concerning, and a lot of work needs to be done to help smaller businesses through this turbulent trading period. The increased cost of energy, fuel and disruption to the global supply chain is having a much greater impact on UK MSMEs. These revenue hits will have significant long-term impacts as they reduce investment, innovation, and development. It is important that smaller companies are offered the training and guidance to navigate through this period and we stand ready to support them through this.
“This decline has a cumulative impact, because while UK businesses withdraw from markets and fail to invest, their overseas competitors are taking advantage. UK exporters are a vital part of our economy; and if the Government wants to meet its ambitious export target of £1 trillion, more must be done to create a fertile environment where trade can flourish.”