New research out today shows that businesses in the Northern Powerhouse see exporting and international growth as key to their success - but they still face major challenges.

The study from Alibaba Group UK in partnership with Institute of Export and International Trade looked at more than 3,000 businesses across the UK and found that 74% of businesses across the North are currently exporting, two thirds expect their export sales to increase in the next 12 months and 77% of businesses in the region said exporting had boosted their revenue.

When it comes to export markets, businesses in the Northern Powerhouse are looking close to home. A third (33%) regard the UK’s nearest neighbours in the European Union (EU) as the market which presents the biggest export opportunity. Looking to future growth, North America (29%) and Asia (25%) present the biggest opportunities.

Despite the positive outlook, many businesses perceive challenges that could stand in the way of their export ambitions. The top five biggest export barriers were listed as:

Supply chain and logistical issues (22%)

Fully occupied by the domestic market (20%)

Increased paperwork and red tape (20%)

Regulatory barriers (19%)

Economic uncertainty (19%)

For businesses focused on international growth, 68% of those surveyed are currently using online marketplaces to boost their export sales. Over a third (35%) started working with a marketplace during the pandemic, with the pandemic providing a strong impetus for businesses to adopt digital tools.

Roland Palmer of Alibaba Group, said: “Our research suggests that Northern Powerhouse-based companies are seizing the enormous global export opportunities which exist across the world. The export success is clearly driven by the quality and heritage of its local goods.

“Through international trade, even small businesses have the opportunity to grow, in turn generating more jobs and contributing to economic growth. Once a business begins exporting, they quickly recognize that the advantages outweigh the initial obstacles and they grow in confidence. We’re focused on helping businesses of all sizes on their export journey.”

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Marco Forgione, Director General of Institute of Export and International Trade, said: “This research confirms what we have long known – that exporting firms are more sustainable, profitable and resilient – but also sheds light on some of the many challenges that prevent businesses from exporting at all or exporting as much as they could.

“The whole trade community needs to work together to combat and reduce these challenges.”

  • A live event on Exports and International Trade as part of our Level Up campaign is planned for September 28. For details of how you could be a part of the event, contact ryan.fenwick@localiq.co.uk