Exports to emerging markets growing too slowly – Telegraph.co.uk

Mark Gregory, chief economist at EY, said: “Some of the traditional global
trade routes which the UK has historically partnered with are reaching their
sell-by date.

“The US is starting to re-shore some of its manufacturing capabilities
and competition from countries like Mexico, Malaysia and Poland,
particularly at the nuts and bolts end of manufacturing, is increasing.”

Exports to emerging markets “aren’t growing quickly enough to meet import
demand”, he warned, adding that “goods exporters must stop treading water
and manoeuvre into the fast lanes to growth”.

EY called for “sector-specific strategies” across all industries “where there
is a significant opportunity to meet the demands of some of the world’s
fastest growing economies”.

These include the pharmaceutical, automotive, engineering and oil and gas
sectors, it said.

Mr Gregory said:“Global supply chains are starting to shift. China has
developed its own Asia-wide supply chains with countries like Indonesia and
Malaysia, and Poland is now emerging as the China of Europe, with Mexico
becoming North America’s equivalent. Rather than take a blanket approach to
export strategy, companies and policymakers need to examine trade at a
corridor level based on where our biggest growth sectors can reap the
greatest rewards.

“Trading with rapid growth markets today doesn’t necessarily mean doing
business with the BRICs [Brazil, Russia, India and China]. Some real sweet
spots of demand for UK products are emerging for automotive to Thailand and
China, and engineering to Hong Kong, Saudi Arabia and Poland.”