The Northern Ireland Statistics & Research Agency has today published the ‘Exporting Northern Ireland Services Study 2010’.
The report bring together information about service sector exports in the Construction, Manufacturing and some elements of the Services sector. There is particular emphasis on the activities of businesses in the latter group, which previous research identified as having “High Export Potential”.
Total known value of service exports
· The total value of service exports in the sectors covered, to date, by the survey was estimated to be £409.6 million in 2010, a drop of 17.4% (£86.4 million) compared to the figure reported in 2009 (£496.0 million). The 2010 estimate was comprised of £131.2 million of service exports made by the Construction industry; £38.2 million of the Manufacturing industry service exports and in addition £240.2 million from the High Export Potential Group.
· Exports from the Construction sector were estimated to have decreased over the year from £225.4 million to £131.2 million in 2010 (-41.8%), reflecting a drop in the number of construction companies with 10 or more employees (from 1,000 in 2009 to 709 in 2010).
· The export of services from the manufacturing sector also fell by 15.3% (£6.9 million), from £45.1 million to £38.2 million over the same period.
High Export Potential Group
· The total value of exports made by companies within the High Export Potential group was approximately £240.2 million in 2010, an annual increase of 6.5% (£14.7 million). This compared to annual growth experienced in the previous year (2008 to 2009) of 0.3% for service exports.
· The Computer & Related Activities Industry contributed the largest share of exports, accounting for 64.9% (£155.8 million) of the total services exported by the high potential group in 2010. The Computer & Related Activities Industry sector also had the largest actual annual increase (from £131.2 million in 2009 to £155.8 million in 2010).
· In 2010, exports accounted for approximately 21.2% of total sales in the high export potential group, an increase on the previous year when the share was 19.0%.
Exports for High Export Potential Group by Destination
· Over the year the value of exports to the Republic of Ireland (ROI) increased by 10.4% to £69.8 million in 2010. The proportion of exports going to the ROI was relatively stable during 2006 and 2007 (36%), however this dropped to approximately three tenths of exports after 2008 (30.1% in 2008, 28.0% in 2009 and 29.0% in 2010).
· In 2010, almost two thirds (64.4%) of High Export Potential group exports to ROI were within the Architectural & Engineering and Technical Testing & Analysis sector (33.5%) and the Computer & Related Activities sector (30.9%).
· Total services exported to the Rest of EU (REU) fell by 32.4% over the year from £27.5 million in 2009 to £18.6 million in 2010. The Computer & Related Activities sector accounted for much of this decrease, with exports dropping from £23.2 million in 2009 to £11.0 million in 2010.
· Conversely, total services exported to the Rest of World (ROW), which is composed of all export countries outside the European Union, increased by 12.7% over the year from £134.8 million in 2009 to £151.9 million in 2010. The Computer & Related Activities sector exports increased from £89.8 million in 2009 to £123.2 million in 2010, and accounted for the largest share of sales to this destination (81.1%).
· The ROW accounted for the majority of exports in the high export potential group with almost three fifths (58.8% in 2007, 52.7% in 2008, 59.8% in 2009 and 63.2% in 2010) of export sales destined for such countries.
Invest NI client group
· Invest NI client companies were key contributors to the overall value of the high export potential group exports in 2010, accounting for 82.6% or £198.5 million of total exports. The dominance of client companies was particularly evident within the Computer & Related Activities Industry categorisation where client companies accounted for 97.7% of total exports within that sector.