Importing is how Australian import export businesses nowadays cope with the high Aussie dollar, a recent study shows.
The 2013 DHL Export Barometer shows that three out of four import export businesses in Australia cope with the high exchange rate by importing. The study involved close to 700 export businesses in Australia.
Importing Components to Stay Competitive
Tim Harcourt, lead economist on the study, said that high dollar also means Australian manufacturing firms can buy more at lower import costs, considering they have a global supply chain. He added that the Australian professional services and resources sector were also doing a lot of offshore investment – all because of the high dollar.
Positive Notes from Australian Import Export Sector
Despite the challenges, export confidence is high. 58% of exporters anticipate orders will increase, up by just a little compared to last year’s forecast when the world was still reeling from the effects of the global financial crisis. Australian exporters are resilient. Harcourt expressed that the high Australian dollar is not hurting Australian export businesses as much as he expected.
Hotspots for Australian Importers and Exporters
China, India and the ASEAN nations of Southeast Asia are still the biggest growth engines for Australian exporters. For them, Asia is the main region where growth is expected.
- 57% of them anticipate growth in China
- 53% expect growth in the ASEAN nations
- 48% from emerging economies in the Middle East and Asia
- 47% expect to see growth in India.
The number one export destination last year, however, was still New Zealand.
Import Export Challenges and Trends in Australia
Aside from coping with high Australian dollar, exporters now also have to make adjustments in how they compete in the global market. The 2013 DHL Export Barometer study also revealed that Australian exporters are lagging in the internet-based commercial space. Two out of three exporters from Australia are not selling online, even though it is the chief source of international competition.
A noticeable trend among Australian start-ups meanwhile is that they tend to be “born global”, meaning they start off immediately as export businesses rather than building a foothold in Australia first before venturing overseas. This is especially true among e-commerce and technology start-ups which target markets with high internet penetration such as Korea.
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