THE LAST WORD
over the next decade,” but added they must not be blind sided by the importance of trading with Europe because the “big future for exports” is with the fast-growing economies. His statement is backed by ONS statistics revealing UK exports to BRICS (including South Africa) more than doubled from £12.7bn in 2007 to £27.1bn in 2012.
Certainly a number of major UK government and business initiatives in recent months have involved some of the BRIC countries. In February, David Cameron led the largest ever Prime Ministerial trade delegation to India accompanied by representatives of 100 companies.
A pan-India network of British Business Centres backed by £8m of Government funding has also been announced. The new centres will offer support to UK businesses, particularly SMEs, operating in India. It comes at a time when UK companies are making great strides in the country. Debenhams will open 10 new stores across India by 2017; The Royal Mint will be part of a joint venture, striking sovereign commemorative coins in India; and InterContinental Hotel Group plans to build 13 new hotels in India over the next few years.
As I see it...
Lawrie Holmes considers the experts’ opinions on future export growth
Jim O’ Neill, the soon to retire chairman of Goldman Sachs Asset Management, thinks that by the end of the decade around 17 per cent of UK exports will be to the BRIC nations. That may seem quite a leap given that current sales to the fast-growing economies of Brazil, Russia, India and China are worth 5.6 per cent. But O’Neill’s prediction should not be dismissed. He became a leading economist after inventing the BRIC acronym 11 years ago. At a recent CBI dinner, O’Neill said British exporters must “immerse themselves” in the huge opportunities presented by the fastest growing economies
50 | springboard |
www.ukti.gov.uk
In Brazil, two UK architecture firms have won prestigious contracts to deliver venue designs for the Olympic Games in Rio de Janeiro 2016. The wins were announced as Lord Sebastian Coe led a trade mission of UK companies to Brazil. AndArchitects is teaming up with Rio-based practice Lopes, Santos & Ferreira Gomes which has won a contract to provide designs for the Handball Arena. 3DReid, which worked on the Sir Chris Hoy Velodrome for the Glasgow 2014 Commonwealth Games, has secured work to deliver Rio’s Olympic Velodrome.
The BRIC nations and other high-growth markets such as Colombia, Indonesia, and Qatar will feature strongly on Export Week on 13-17 May. A series of high-profile events across the UK will offer advice on doing business around the world, especially into these markets. This includes guidance for smaller UK companies that are among those making journeys to Rio or Riyadh, Moscow or Mexico City and sealing deals for what they have to offer.
Focusing on fast-growing markets comes at a time when Europe must continue to bolster economies, in light of the Cyprus rescue. European Central Bank President Mario Draghi recently said officials “stand ready to act” in the event of further threats to economies in the Eurozone. Yet the American economy is continuing to perk up. U.S. employers added 190,000 workers in March after taking on 236,000 in February, and in the same month the jobless rate held at 7.7 per cent, the lowest level since December 2008. As Phil Harrold, UK auto industry leader at professional services firm PwC, told springboard: “The BRICs are important but manufacturers such as JaguarLandRover are also dependent on American demand. Fortunately the North American market is taking off. US car sales in the last quarter of last year were up 7 per cent”.
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