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Exports offer enormous growth potential for Spanish firms
Spanish companies have major export potential, according to an ESADE study commissioned by HSBC. Exports of the largest unlisted Spanish-owned companies represent only 26% of sales, while their foreign counterparts reach a level of 74%.
This is one of the observations made in the report entitled 'Exports of Medium and Large Spanish Companies’ which is one of the most complete studies on this subject carried out in Spain. Focusing on the 500 largest exporters operating in Spain (with sales above €200 million), the study analyses export activity and the role of internationalisation.
Listed firms represent a significant volume of Spanish exports because of their large size. However, the real export champions are unlisted firms as 71% of their sales are exports – while exports account for just 29% of sales by listed firms. Nevertheless, Spanish export volume is still led by major companies, as one in four of the major companies analysed export and their products account for 74% of total exports.
During the presentation of the study, Mark Hall, CEO of HSBC Spain, stressed that: ‘Lucta is an example of the international potential of Spanish companies. Globalisation has always been one of its main focuses and its growth over the years has shown the benefits of internationalisation. There are many cross-border opportunities for companies based in Spain and HSBC will continue to help them capture these opportunities. Spain has enormous growth potential and we aim to help Spanish firms sell their products and services around the world’.
Carmen Ansotegui, professor at the ESADE Department of Economics, Finance, and Accounting and author of the report, added that: ‘Europe is the most common export destination for firm operating in Spain – but other regions such as Asia represent a great opportunity because of their growth potential. The Lucta case study shows that one of the main challenges that companies must overcome is in adapting their products to local markets. Many companies in Spain have shown that this can be very successfully achieved’.
The study highlights the regions with the greatest growth potential for companies. Europe is an export destination for 59% of the companies analysed, but only 7% of firms export to Asia – a growing region. South and North America are, respectively, export destinations for 12% and 11% of the analysed exporters.
Manufacturing is the leading export sector
Manufacturing is by far the leading export sector and accounts for 58% of exports. Wholesale and retail products rank second and represent 15% of the exports of the firms surveyed. Foreign-owned firms are the main drivers for manufactured exports, while Spanish-owned firms dominate wholesale and retail industry exports. The most exported products are vehicles and vehicle parts, a sector led by the Spanish subsidiaries of multinational companies.
About the study: ‘Exports of Medium and Large Spanish Companies’
HSBC commissioned ESADE to identify medium and large Spanish exporters and examine their characteristics and the destination of their exports. The study identifies 500 Spanish exporting companies with sales of more than €200m. Information was taken from the SABI database (which offers data on exports, their destinations, and sales at the corporate and tax number registration levels). The report was prepared by Carmen Ansotegui, professor at the ESADE Department of Economics, Finance and Accounting. More information: www.exportsincomespain.com
