Manufacturing exports fall prompting calls for help

GROWTH in Scottish manufactured exports slowed again in the third quarter of last year, prompting business leaders to warn that more support will be needed from Holyrood if the government is to meet its targets.

There was a 0.2 per cent rise in sales between July and September, according to Scotland’s chief statistician, and annual growth now stands at 2.7 per cent.

Although still in positive territory, the figures confirm a slow-down in manufactured exports. Quarterly growth in the first three months of 2011 stood at 3.8 per cent, and fell to 1.5 per cent in the second quarter.

Iain McMillan, director of CBI Scotland, said the loss of momentum required direct government intervention. “The Scottish administration has set a welcome target for export growth, but they need to put much more flesh on the bones as to how this will be achieved,” McMillan said.

“That is why we have called on ministers to provide pump-prime funding to help establish more direct air connections to key overseas business destinations and hubs, in order to make it easier for Scots firms to access new markets and service overseas customers more effectively.”

Liz Cameron, chief executive of Scottish Chambers of Commerce, said sales of manufactured goods overseas had been one of “the key success stories” since the global downturn. However, she added that exporters would require further support.

“It is extremely welcome that export growth continued but we know that our exporters have had a tougher time over the past three months, and it will be difficult to better this growth in the fourth quarter,” Cameron said.

The drinks sector was the largest contributor in the third quarter, with exports up by 3 per cent. Growth was also recorded in metal products, mechanical engineering and “other” manufacturing, offset by falls in chemicals and electrical engineering.