UK exports of components and parts significantly fell in the third quarter by total weight (down 33.5%) and value (down 20.5%), compared with Q2.
The report from the3418 Construction Equipment Association provides an update on quarterly exports and imports of components and parts. Data is taken from the UK government’s official trade statistics and is available in tonnage and monetary value of machinery and component parts (products). Products included are buckets and attachments, blades, parts for boring or sinking machinery and other parts for construction equipment.
By weight, the reduction this year is 15.3%, while on a value basis 2016 levels are 26.7% below last year. The CEA said that this suggests that there has been no immediate benefit from the fall in the value of the UK pound in the first three months following the Brexit referendum in June. People voted for the UK to leave the European Union and the government is making plans to do so, although an exit could take more than two years to complete.
In contrast, imports showed a modest increase on a weight basis in Q3 (1.8%), but a 7% reduction on a value basis.
Overall, imports of components and parts remain relatively stable, albeit showing small reductions on a year-to-date basis compared with 2015. Tonnage in the first nine months show a 4.7% reduction on 2015 levels, while monetary values show a 7% reduction on 2015 levels.
Exports of components are relatively small compared to equipment. During the first three quarters of 2016, component exports were €534 million (£451 million), while equipment exports were four times that, reaching €2,080 million (£1,759 million).
For imports, the difference is much less significant. In the first three quarters of 2016, component imports were €690 million (£584 million), nearly 60% of the level of equipment imports at €1,187 million (£1,003 million).
In the first nine months of 2016, UK manufacturers exported components and parts to over 170 countries. The top 20 countries accounted for 85% of total exports based on weight, and 70% based on value, in the first nine months of 2016.
In weight terms, the top three destinations from January to September this year accounted for over 46% of total exports - France (19%), US (17%), Belgium (10%).
At one point, exports to France overtook those to the US this year. However, in the July-September quarter, exports to France fell significantly, leaving the US as the top destination again. In value terms, the US remains the largest destination market, accounting for 18% of total exports, followed by Norway with 10%.
Exports to European Union markets have shown an increased share of total exports. By weight, exports to EU countries increased from 50% in 2015 to 56% of total exports in the first nine months of 2016. However, in the third quarter this year, exports to the EU fell to 49%, largely due to the lower levels of exports to France.
During the first nine months of 2016, the top 20 countries accounted for over 90% of total imports in both weight and value terms. The top three importing countries across 2015 and the first three quarters of 2016 were China, India and Italy. They accounted for 66% of total weight of equipment exported and 38% of total value in the first nine months of the year.
China alone accounted for 34% of total weight and 15% of value in the first three quarters of 2016. Belgium, ranked 6th, and the Netherlands, ranked 8th, remain two of the highest importing countries in the first nine months of 2016. Together they accounted for around 6% of total imported weight. However, these markets are recognised as being a “last” country of shipment into the UK, rather than the source destination of the components and parts.
The report from the
By weight, the reduction this year is 15.3%, while on a value basis 2016 levels are 26.7% below last year. The CEA said that this suggests that there has been no immediate benefit from the fall in the value of the UK pound in the first three months following the Brexit referendum in June. People voted for the UK to leave the European Union and the government is making plans to do so, although an exit could take more than two years to complete.
In contrast, imports showed a modest increase on a weight basis in Q3 (1.8%), but a 7% reduction on a value basis.
Overall, imports of components and parts remain relatively stable, albeit showing small reductions on a year-to-date basis compared with 2015. Tonnage in the first nine months show a 4.7% reduction on 2015 levels, while monetary values show a 7% reduction on 2015 levels.
Exports of components are relatively small compared to equipment. During the first three quarters of 2016, component exports were €534 million (£451 million), while equipment exports were four times that, reaching €2,080 million (£1,759 million).
For imports, the difference is much less significant. In the first three quarters of 2016, component imports were €690 million (£584 million), nearly 60% of the level of equipment imports at €1,187 million (£1,003 million).
In the first nine months of 2016, UK manufacturers exported components and parts to over 170 countries. The top 20 countries accounted for 85% of total exports based on weight, and 70% based on value, in the first nine months of 2016.
In weight terms, the top three destinations from January to September this year accounted for over 46% of total exports - France (19%), US (17%), Belgium (10%).
At one point, exports to France overtook those to the US this year. However, in the July-September quarter, exports to France fell significantly, leaving the US as the top destination again. In value terms, the US remains the largest destination market, accounting for 18% of total exports, followed by Norway with 10%.
Exports to European Union markets have shown an increased share of total exports. By weight, exports to EU countries increased from 50% in 2015 to 56% of total exports in the first nine months of 2016. However, in the third quarter this year, exports to the EU fell to 49%, largely due to the lower levels of exports to France.
During the first nine months of 2016, the top 20 countries accounted for over 90% of total imports in both weight and value terms. The top three importing countries across 2015 and the first three quarters of 2016 were China, India and Italy. They accounted for 66% of total weight of equipment exported and 38% of total value in the first nine months of the year.
China alone accounted for 34% of total weight and 15% of value in the first three quarters of 2016. Belgium, ranked 6th, and the Netherlands, ranked 8th, remain two of the highest importing countries in the first nine months of 2016. Together they accounted for around 6% of total imported weight. However, these markets are recognised as being a “last” country of shipment into the UK, rather than the source destination of the components and parts.
