Manufacturing exports from Britain will bring in around £14.4 billion to the Scottish economy this year, a new study has found.

The report, from Barclays, also found that once manufacturers who currently don’t export products start in the future, the total could increase to £14.7bn a year by 2030.

Barclays’ report – The Export Dividend – shows that, despite supply chain disruption, the pandemic, and the UK’s exit from Europe, a large percentage (84%) of manufacturing firms with 10 or more employees in Scotland are currently exporting.

Across Britain, food and drink producers are seeing the largest financial gains, with £34.3bn in global sales. They are followed by automotive manufacturers, with £20.9bn.

Research revealed that UK firms that have exported goods have fared better this year than non-exporters. Around 26% of respondents said they had seen ‘significant growth’ in 2021, while only 18% of non-exporters said the same.

Meanwhile, manufacturers who export said they are also “more confident about their prospects” over the coming year, with 88% saying they are “upbeat” about their growth potential, compared to 71% of those who don’t currently export.

The research also found significant demand in Scotland for non-exporters to begin exporting in the future, with half (50%) stating they aim to start selling overseas in 2022. This could add an additional £39m to the local economy next year, and an additional £316m per year by 2030.

Commenting on the research, Andy Hall, Head of Corporate Banking, Barclays Central Scotland said: “While the Scottish manufacturing sector has endured a tough year, the report released today shows encouraging signs of recovery for Scotland.

“Our exporters have weathered the Covid and Brexit storms and it is pleasing to see a strong demand for their products globally.

“Confidence is high, and many Scottish firms are looking to exports to fulfil their growth ambitions next year and beyond, with half of those who don’t yet export overseas aiming to start in 2022.”

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The new findings coincide with the Government’s refreshed export strategy, ‘Made in the UK, Sold to the World’, which was published in November. Barclays’ research shows that knowledge gaps will need to be narrowed to fulfil its ambitions.

Currently only a small percentage of those in Scotland are aware of current or emerging initiatives to encourage international trade, such as the UK’s bid to join the Trans-Pacific Partnership (46%) and the recently signed free trade agreements with Japan (50%) and Australia (36%).

Only around a third in Scotland (34%) were aware of the plans to create eight new freeports in England, which offer tax breaks for manufacturers on the import of materials.

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