ONE in eleven companies across Scotland could be exporting goods abroad if the nation unleashed its full potential for international trade, a new report reveals.
Currently, 5,752 businesses across Scotland export goods. But Heathrow’s new Exporting Excellence study estimates up to 9,200 more small and medium sized businesses have the potential to export goods but currently do not.
If Scotland’s potential exporters joined forces with those already trading internationally, almost 15,000 companies would be exporting goods – a 160% increase on current numbers. That represents one in eleven of all businesses in Scotland and would boost the Scottish economy by millions of pounds.
As part of its Exporting Excellence campaign to boost international trade across the UK, Heathrow partnered with the Glasgow Chamber of Commerce to speak to businesses about their priorities for international trade and obstacles to greater growth.
Scotland’s exporters highlighted a range of challenges to boosting international trade including sustainability, a skills gap, access to finance and the need from government for a clear and overarching strategic plan for export growth.
Ross Baker, Heathrow’s Chief Commercial Officer, said: “Scotland’s exporters have provided valuable insight for the Exporting Excellence campaign, detailing their own experiences on what is working well and where obstacles remain.
“Their insights have informed our campaign, which we hope will kick start a conversation right across the UK about how government, industry and Heathrow can work together to grow international trade and encourage more and more businesses to export.”
Stuart Patrick CBE, CEO of the Glasgow Chamber of Commerce, commented: “One of the things that came across most clearly during our roundtable discussion with exporters was how we could work together to encourage more young people to consider careers in logistics or exporting.
“There is currently little awareness among young people leaving education about exporting or logistics as a potential career. Further collaboration between industry and government on raising awareness will be vital to closing the skills gap, unlocking more of our export potential and building on Scotland’s global reputation for producing some of the best food and drink in the world, as well as quality clothing and advanced manufacturing.”
The Exporting Excellence report makes a number of recommendations to Government to unlock the full export potential of Scotland.
This includes reducing paperwork and moving to a ‘digital first’ system for customs declarations and launching a new UK-wide campaign to encourage more young people to consider a career in logistics or exporting.
It states: “The UK cannot achieve its economic potential if the country does not have the right mix of skills to handle the complexities of compliance and logistics. During Heathrow’s tour of the UK, we witnessed excellent examples of initiatives being developed to tackle the export skills shortage, many of them driven by businesses themselves.
“There is a consensus that the country needs to go further and faster. The UK needs a national campaign to highlight the potential a career in exports could offer job seekers and people leaving education.”
Scotland’s exporters also identified sustainability as a challenge for the aviation sector, which is committed to reaching net zero by 2050.
The UK Government last autumn announced its Sustainable Aviation Fuel (SAF) Delivery Plan, which will be fully implemented by the start of 2027. It includes plans for five SAF production plans, including one at Grangemouth, to be under construction by 2025.
However, campaigners have warned the UK Government’s current timetable is too slow and puts new jobs and industry at risk. The report calls for the ‘urgent’ delivery of the plan.
From Scottish salmon and whiskies, to wool, tweed and plant machinery, Scotland’s goods remain in high demand across the world. As the UK’s only hub airport, Heathrow is a vital partner to Scotland’s exporters, helping them to connect to global growth. Scotland currently exports £36bn worth of goods and the nation’s international trade supports 468,000 jobs.
Heathrow pools its passenger and cargo demand to maximise trading opportunities for businesses, with 95% of air cargo in the belly hold of passenger aircraft. That means it can carry exports to 239 destinations in 89 countries.
