The Press and Journal (Inverness, Highlands, and Islands)
Aces top Brics as firms bid to boost exports
US and Europe better bets, say experts
Scottish exporters have been urged to break up “Brics” and go for “Ace” instead to boost overseas sales, a report has found.
Big four accountancy firm EY has said Scottish companies could boost their share of exports by focusing on “Ace” economies – the US, China and Europe.
A focus on these countries marks a partial shift away from the popular Bric countries – Brazil, Russia, IndiaandChina– dropping the first two countries and adding the nearer, more familiar markets of US and Europe.
Scottish businesses contributed 7% of UK exports by value in the second half of 2015, with the US, France, the Netherlands, Belgium and Germany making up the region’s top five export partners, according to HMRC’s trade statistics.
Examining export performance, EY has recommended that over the next twodecades, theUKshould focus its export strategy on the Ace economies based on forecasts of these regions’ gross output for
regional 2020 and 2030. Taking in one of the economies dropped in the shift from Bric to Ace, EY said that firms should also make India a “medium-term” target due to its potential for growth around 10 years from now.
Mark Gregory, EY’s chief economist, said: “These markets combine higher growth and demand, and fit well with the UK’s existing and potential capabilities in goods and services.
“America, China and Europe should be at the core and India as the development bet – with the latter really showing accelerated growth towards the end of the next decade.”
In Scotland, EY is urging companies and leaders to follow suit by developing new and reinforcing existing relationships in the Ace economies to increase exports.
MarkHarvey, EY partner and market leader for Scotland, said: “Scotland’s exporters should target Ace economies to boost business.
“Inrecent years there has been a push towards the Bric economies but these are not necessarily the best fit for Scottish, and UK, companies.
“Scottish companies already have a strong footing in some of the keymarkets for export expansion.” Mr Harvey added: “EY’s latest Scotland Attractiveness Survey also highlighted the ongoing need to develop relationships with growth territories like Asia to secure a bigger share of their foreign direct investment projects. China is the fifth-biggest source of projects for the UK as a whole in 2014 but does not even rank in the top 10 origins for FDI into Scotland.”
EY’s report onUKexport performance draws on studies and research undertaken by the EY ITEM Club over the last three years together with other work commissioned by EY and the British Chambers of Commerce.
“Scottish companies already have a strong footing in key markets”