Sales by Northern Ireland businesses to international destinations grew by more than one-third in the five-years prior to the Covid-19 pandemic, new research suggests.
An in-depth study by Ulster University’s Economic Policy Centre (UUEPC) shows exports to the ‘rest of world’ destinations grew by 37% between 2014 and 2019, while EU sales, excluding the Republic, increased by 34%.
Cross-border exports increased by 30% over the period, while sales to Britain increased by 22%.
The report, which analysed 1,666 firms over the five years, found total sales increased by 16% from £34 billion in 2014 to £39bn in 2019.
While the domestic market grew at a more modest 10% over the period, it still accounted for 63% of all sales in 2019, albeit down from a 66% share in 2014.
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UUEPC’s researchers found that two-thirds of exporters contributed to 97% of all export sales.
These ‘constant exporters’ are often larger, more efficient, and mainly come from the manufacturing sector.
On average, these businesses generate over £9 million a year from their international sales.
However, the report found businesses that only occasionally sell abroad are growing much faster.
Their sales to the ‘rest of the EU’, for example, more than tripled between 2014 and 2019.
Sales to the rest of the world from these occasional exporters also surged by 217%.
While these businesses make up a third of all exporters, they contribute a much smaller share (3-5%) of total export sales, averaging around £700,000 annually.
The research found that almost 60% of businesses selling locally in Northern Ireland make 90-100% of their total sales in the domestic market.
But UUEPC’s research suggests there’s untapped potential for businesses that currently only sell locally to start exploring international markets.
For those who occasionally export, there is opportunity to sell more consistently and in larger amounts, as learning from exporting is more effective when it’s done regularly.
For the highly successful, constant exporters, the report suggests they could benefit even more by aiming to sell a bigger portion of their products internationally or by branching out into new countries.
This could help them learn faster, become more competitive, and spread their business risks.
