IT IS a sector worth £8bn to North-East businesses every year and one in which the region is leading the country - and yet only five per cent of its companies are taking advantage of it.

But more and more businesses are getting the message that taking the time and effort to explore potentially lucrative export markets can bring huge benefits.

The statistics underline the immense potential. In 2003, the region's exports were £8.02bn.

Last year's figures, which have just been made available, show that they rose by one per cent to £8.1bn, an increase slightly above the national figure. And it is growing rapidly: in 1997, the figure for the region was £5.6bn.

What makes those figures all the more remarkable is that they only cover manufactured goods. Add services, such as consultancies and technical advice, and it rises to £10bn a year.

As John Williams, international trade director for UK Trade and Investment in the North-East, says: "That is £4,000 for every man, woman and child in the region. We have seen a phenomenal rise."

UK Trade and Investment, which is the lead Government organisation helping British companies to win new overseas business, launched a partnership last year with One NorthEast, Business Link, and the North East Chamber of Commerce to further strengthen the support for companies hoping to export.

Just over five per cent of North-East companies are currently trading overseas, with the biggest sectors being chemicals, automotives - led by Wearside-based Nissan - and pharmaceuticals.

Of the region's exporters, 60 per cent are large companies, many of them inward investors.

The reason the big boys are leading the way, according to Mr Williams, is that companies like Nissan already think globally because of their international background.

He said: "They are already well used to global competitiveness and our companies are learning from them.

"The region has a supply chain that is world class, as evinced by the success of Nissan."

However, the drive to export is not simply down to foreign companies, because many native North-East businesses have been exporting for years, driven, Mr Williams believes, by the natural, if unheralded, North-East instinct for innovation.

Besides the main three export sectors, the region is also seeing growth in areas such as energy, engineering, giftware and jewellery.

Although Western European countries such as Germany and France remain popular markets, North-East companies are increasingly breaking into Eastern European sectors as well, something which can be expected to grow with the recent expansion of the European Union.

However, North-East companies are also showing much more ambition, exporting to countries from Malaysia to New Zealand, Australia to the Philippines. Pick a country and the North-East is likely to be exporting to it.

Mr Williams said: "The North-East got the message quite some time ago."

Those companies which target more familiar countries may find it easier to understand the culture but, Mr Williams says, because of that, they are more crowded and competitive market places.

He points to less-exploited markets that are outside the comfort zone and require more effort, but which offer potentially much larger rewards.

Leading the way, he says, are the countries identified generally as the ones whose emerging markets will have the biggest influence on the global marketplace in years to come - Brazil, Russia, India and China, known as the BRIC nations. For instance, the region already exports £30m a year to Brazil.

And other less influential markets also offer great opportunities: the region exports £35m a year to Dubai alone.

Mr Williams believes that those companies which do not export do so partly because of fear of the unknown, and partly because they do not realise what is on offer.

He said: "Our job is to raise awareness of the opportunities. Not all businesses are focused on growth, but we are seeking to raise awareness of the opportunities for those which do wish to grow.

"There are substantial opportunities for companies in this region as long as they are well-informed about the markets into which they are going and have thought about the potential barriers to success, whether they be cultural or technical."

Once again, the figures underline the success story. The region's balance of payments shows that, between 2000 and 2004, the North-East exported £11.5bn more than it imported.

Nationally, the balance was in negative territory by £221bn. The North-East is one of only three regions in England with a positive balance of payments, and by far the one performing the best.

Mr Williams said: "Successful companies need three things: knowledge, skill and attitude.

"Companies which are successful have devised a strategy to acquire those things.

"Eighty per cent of trading internationally is the same as business anywhere; the other 20 per cent is completely different and companies need to ensure they are prepared for that.

"However, the region's exporting companies are proving every day that they can compete on the international stage."

* Anyone wishing advice from UK Trade and Investment can contact the organisation's hotline on 0845 050 5054.