International exports reach £26 billion

The eleventh Global Connections Survey confirms a 7.9 per cent increase in manufacturing exports and a 5.6 per cent increase in service sector exports with strong performance in food and beverages, petroleum and chemicals and wholesale retail.

Together the top five industry sectors account for around 52 per cent of total international exports from Scotland.

The USA remains the largest single country market for Scottish exports totalling £3.6 billion in 2012. This is followed by the Netherlands (£2.7 billion), France (£2.2 billion) and Germany (£1.5 billion).

Exports to the rest of the UK in 2012 are estimated at £47.6 billion, this increase is due to the 2.5 per cent rise in the value of service exports and 9.7 per cent in the manufacturing sector.

Finance Secretary John Swinney said: “These figures show increased demand for Scottish goods and services and the popularity of the Scottish brand across the world.

“They are particularly encouraging given the challenging economic conditions in Europe and show that there continue to be opportunities for Scotland’s exporters.

“It is essential that Scotland remains focused on international trade and investment. That is why we are working with Scottish Development International, Scottish Enterprise and Highlands and Islands Enterprise to help companies expand and reach out to new markets.

“These figures do not include the additional exports that come directly from North Sea Oil and gas production – which are estimated to add a further near £14 billion to Scotland’s international exports."

Two examples of successful exporters are Bebaroque, an Edinburgh based fashion firm and Rage Music, a Glasgow based Bafta award winning music company.

Bebaroque, an Edinburgh based fashion firm, exports their designs across the world. Since their launch in July 2007, Bebaroque has exhibited at both London and Paris Fashion Weeks, their designs are also stocked in the US, China and Japan.

Designer Mhairi McNicol, one half of the Bebaroque duo, talks about the company’s international trade journey so far. “We were very ambitious with where we envisaged selling our products overseas.

“Each season we would show at London Fashion Week where we started to attract some international attention but it was when we started exhibiting during Paris Fashion Week that it really took off and we gained the majority of our international stockists, particularly from the US, China and Japan.

“Ecommerce has allowed us to sell our products globally, however we’re mindful that in some markets consumers prefer purchasing our products locally at their convenience, so it’s vital that we continue to identify, partner and support our retailers.

“We‘ve just launched Bebaroque in Le Bon Marche Rive Gauche Paris and Lane Crawford, a luxury store in Shanghai, for Autumn Winter 2013 where we have featured as their guest brand of the season.”

Rage Music, a Glasgow based Bafta award winning music company has expanded their operations to the US market. Rage Music now has a studio in LA which has allowed them to increase feature film work and expand into the videogame market increasing their exports.

Rage has produced advertising campaigns for Chase Manhattan Bank, Absolute Vodka and a multi-million dollar advertising campaign for oil giant Chevron which was shown during the US Superbowl.

Caroline Gorman, Rage Music’s head of music said: “The leap into expanding to an international location is, understandably, a scary one; the expense, the unknown, the risk. But with a bit of luck and as much planning as possible, it can be very successful.

“Our activity in the US marketplace has brought real growth to our business over the last five years. We’ve grown our client list and our own team, and this has enabled us to shape the company in order to deliver the range of music services that we now specialise in.

“Our plan for the future is to focus on our three main sectors and continue to push towards a better level of recognition within these areas, hopefully bringing even more fantastic projects our way!”

Chief Executive of Scottish Enterprise, Lena Wilson said: “We welcome the findings of the latest Global Connections Survey which reinforce not only a growing appetite for Scottish products and services worldwide but increased ambition and competitiveness amongst Scottish businesses.

"International trade is increasing and markets are becoming more open – that’s why as well as focusing on our traditional trading partners such as the US and Europe, which are particularly important for new exporters, we are also expanding our global footprint to help facilitate new international opportunities in faster growing markets.”

“Last year we supported more than 2000 Scottish businesses in their international trade efforts and we continue to work hard with our partners to provide a joined up package of international business support in order to support both individual company performance and Scotland’s international competitiveness.”