Ambitious Northern and Midlands firms want Government backing to grow their exports – that’s the message from a new study into Ƶ exporters that says there is significant growth potential across the Ƶ.
The first Ƶ Trade Barometer, from airports group MAG and economic growth body the Growing Together Alliance, showed firms across the country saw export success in new and existing markets in Q1. It also showed firms were growing exports to the Ƶ despite uncertainty over Trump’s tariffs.
But the picture was varied across the country, with firms outside London much less upbeat about future growth.
More than two-thirds (68%) of London-based firms polled said they already traded overseas, compared with 39% in the North and 43% in both the Midlands and East of England.
Nationally, some 63% of those polled increased sales to an existing market in Q1 of 2025, while nearly half of all existing exporters (47%) started trading in a new territory.
Twice as many businesses in the capital (41%) expected to enter a new market in Q2 than did in the North (19%) and Midlands (21%).
While in London some 51% of export businesses expected to increase sales in an existing export market in Q2, just 27% of northern businesses felt the same, and just 24% of Midlands and East exporters expecting those sales to rise.
Those polled reported success in US markets in Q1, with 41% of businesses that already trade there expecting to export more in Q2.
But in future firms plan to be less reliant on US trade. While 13% of businesses expecting to break into a new market cited the US as their top target market, five separate EU countries also ranked highly (France, Germany, Italy, Belgium, Spain), alongside Canada (10%), Australia, Brazil and Japan (all 6%)
The quarterly trade barometer has been launched by MAG and the Growing Together Alliance and will see more than 2,000 businesses regularly polled about their export businesses.
Manchester Airports Group (MAG) owns and operates Manchester, London Stansted and East Midlands Airports, alongside digital services business CAVU. The Growing Together Alliance is a coalition of six major business organisations across the Ƶ: BusinessLDN, Business South, Business West, Cambridge Ahead, Northern Powerhouse Partnership, and the North West Business Leadership Team.
Business and Trade Secretary Jonathan Reynolds said: “I’m proud of our brilliant British businesses that sell around the world, and it is great to see that so many have increased their exports and seizing new opportunities.
“Our Plan for Change will create further opportunities for businesses across the country to enter new markets so we grow the Ƶ economy and boost people’s pay packets.”
Andrew Macmillan, MAG’s chief strategy officer, said: “We are right to be proud of the British businesses that export their goods and services around the world, and it is positive to see so many increased sales or entered new markets in the first quarter of the year.
“It is also encouraging that the data shows firms are active in a diverse range of markets, all of which the Ƶ is directly connected to by ports and airports up and down the country.
“There is clear evidence that cities and regions with strong concentrations of exporting businesses are more productive and have higher living standards.
“Therefore, encouraging more companies across the Ƶ to start trading in a diverse range of overseas markets will hold the key to the Government achieving its long-term growth mission.
“News of a trade deal with India, combined a new direct route to Manchester launching in July, is just one example of Government working together with business to connect key Ƶ growth corridors to fast-growing global markets.”
Henri Murison, Chief Executive of the Northern Powerhouse Partnership and Chair of the Growing Together Alliance, said: “The first edition of the trade barometer shows the baseline of business sentiment at the end of Q1 this year. By looking back immediately before the current period of uncertainty, we can see the path by which both individual companies, and the country, can respond.
“Whether it be in the life sciences – which are strong in both the North and in the Ox-Cam corridor – or in areas like advanced manufacturing, the need for closer relationships with Europe can’t be underestimated. That is illustrated in particular by the importance of France and Germany – as well as the wider trading bloc - as key markets for all businesses surveyed.
“To capitalise on whatever trade deals the Ƶ can negotiate, we also need a new Industrial Strategy that sees the Government work towards its significant growth ambitions with Metro Mayors and businesses in our regions.
“Whether it be key levers like innovation or transport connectivity, we know what has held us back in regions like the North in the past. Addressing these barriers will help tackle long-term productivity deficits and enable significant additional growth through exports.
“I am confident that unlike “Levelling-Up”, which set our regions against one another, that we can see all parts of the country, including London, the Central South or West of England all thrive alongside the North.”
