England and Wales exporting fewer manufactured good to the EU

The analysis of data as part of the Make UK/BDO Regional Manufacturing Outlook Report 2023 shows that the UK’s overall share of manufacturing exports to the EU increased in 2022 to 52 per cent from 50 per cent in 2019, but this was due to increases in the share of exports to the EU from Northern Ireland and Scotland over the same period.

Northern Ireland’s Dual Access position gives it access to the Single Market for goods and is able to trade goods freely into the rest of Great Britain, while in Scotland the oil and gas sector and its supply chains boosted exports to the EU during the ongoing Ukraine crisis.

The share of goods exported to Asia & Oceania and North America has remained relatively stable at around 16 per cent since 2019, indicating that UK manufacturers are looking at opportunities outside their traditional big three markets.

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According to Make UK, this has significant implications for government policy on export support if the share of trade with the EU is falling and businesses are looking for opportunities elsewhere. In response, Make UK is calling for a boost to export support for companies, plus changes to existing structures to provide more support for companies exporting to countries outside the EU.