Imports are increasing the UK's productivity and export potential, according to new research by HSBC.
The "Importing for Export Success" report finds intelligent importing is helping UK businesses succeed at the higher value-added end of the global supply chain, particularly in the key export sectors of industrial machinery and transport equipment.
Alan Keir, Chief Executive of HSBC Bank plc, said: "While there are concerns about the UK's trade deficit, this research shows that imports used in the right way benefit UK businesses and the overall economy by boosting productivity and driving export growth. Far from being the enemy of UK manufacturing, they are the overlooked ally of many smart businesses. This report both celebrates businesses that are embracing intelligent importing and highlights the need to continually innovate to stay ahead."
With the UK expected to be the fastest-growing G8 economy in 2014, the report forecasts positive growth in total UK merchandise exports of close to 4% a year in 2014-15, rising to 6% a year during 2016-20. Equivalent import forecasts are almost 5% a year in 2014-15 then just over 5% per annum to 2020.
The report draws on the HSBC Trade Forecast outlining how 50% of the UK's total export growth to 2030 will be driven by two sectors - industrial machinery and transport equipment. It shows these two sectors will also account for over 30% of the growth in imports by 2030, with manufacturing imports coming from an increasing range of foreign suppliers while British businesses focus their efforts on adding value to semi-finished products before exporting them.