Exports from Irish SMEs to the UK are surging ahead of larger players, but many seek new markets to offset Brexit effects.
The decline in the value of sterling has created pressure on Ireland’s exports to the UK leading to to a fall of 5% of all exports in the nine months to the end of September.
By contrast in the period from January to the June Brexit vote, the volume of SME exports to the UK grew by 8.7% compared to the same period in 2015 and from July to November grew astonishingly by a further 5%.” Despite the strong growth in the volume of SME exports to the UK, some SMEs have been forced out of the market, with a decline of 4% in the number of SMEs exporting to the UK since the Brexit vote.
Economists are suggesting that seeking additional export markets is the best strategy to mitigate the risk that Brexit represents for Irish exporters and GCS Logistics are working with our Irish customers to support their efforts. Germany is the biggest European market and should be the first consideration for exporters looking to expand their country portfolio. The other main growth market opportunities in Europe are Spain and France.
Outside of the EU the easiest countries for SMEs to enter will be the 50 English speaking countries with the strongest economies including the USA, Australia and New Zealand. With its favourable euro to US dollar exchange rate and the fact that goods can be imported into the USA up to a value of $800 without incurring any import duties and taxes makes the US a hot favourite.