The Scottish Chamber of Commerce says manufacturers must continue to diversify and target new markets if a rise in exports is to be sustained.
Exports grew by 1.1% during the second quarter of 2011 according to official government figures, although performance had slowed compared to the previous quarter when a 3.8% rise was recorded.
Engineering, petrochemicals, textiles and food and drink all contributed to growth, while there was a downturn in demand in metals and associated products. The worst-hit sector was the paper industry, which saw a 9.4% drop in exports.
SCC chief executive Liz Cameron said the upward trend overall was welcome but said trading conditions were difficult and manufacturers would have to be flexible and forward thinking to avoid market falter.
She said: ”It is encouraging that the strong growth in Scotland’s manufactured exports at the beginning of 2011 has continued into the second quarter. However, trading conditions have become more challenging in the second half of the year, with economic uncertainty growing in the US and in the Eurozone.
”Exporting has been very important to our manufacturers in recent years as domestic demand has remained weak. It is vital that we continue to diversify and identify new potential markets if this growth is to continue.
”It is clear this has been recognised by our governments at Holyrood and Westminster and we need them to create the right environment to allow our exporting businesses to continue to thrive.”
CBI Scotland’s policy executive Lauren McNicol said the economic environment had to be right to promote growth.
She said: ”It will be essential for the Scottish Government to prioritise policies that promote trade and business investment and in that regard we welcome the Scottish Government’s ambition to see exports increase by 50% over the next few years.”
Labour’s finance spokesman Richard Baker said the Scottish Government had to ensure conditions were right to allow business to flourish.
”While ongoing growth in exports is welcome, the slowdown on the previous quarter highlights the need for the SNP Government to redouble its efforts to create the right conditions to allow Scottish exporting businesses to flourish.
”We need a focus on high-value industries and a much more robust strategy to promote exports in emerging markets like Brazil, Russia, India and China.”
Finance Secretary John Swinney said the figures were encouraging but a say over corporation tax and borrowing powers was needed if the Government was to be able to bolster the Scottish economy.
He said: ”Manufacturing export volumes have now increased for the last four consecutive quarters and there is evidence of a stable upwards trend.
”Scottish businesses, large and small, are the primary driver of sustainable economic growth and our ability to succeed as a nation depends on the competitiveness and success of our businesses.
”Over the last four years, this Government has acted to support growth and tackled the challenges presented by the global economic downturn. We have set an ambitious target to deliver a 50% increase in exports by 2017 and our economic strategy outlines practical measures, ensuring that Scottish businesses can seize on opportunities in new growth markets.
”Last year more than 950 Scottish companies received support, through Scottish Development International (SDI), to develop and pursue opportunities internationally. Scottish companies are generating a projected £405m pounds in sales thanks to SDI support.”