Wednesday, December 14, 2011

Reflections on our export community

The year just past will not go down in history as the most satisfying for Australia’s export community, many of whom are our members and friends. 

While skills development is and always will form the cornerstone of what we do, we have this year played an increasing role in getting the message to Government on the plight of our non resources based exporters. While on the surface it may not be apparent, the message, we believe, is getting through. Our task in 2012 is to “maintain the rage” and simply not accept the argument that Australia’s future is based on the resources sector alone, but on a well balanced portfolio of exports which includes manufacturing, food and services to name just a few. With your continued support we will continue to hammer this message home and to take the strongest stance possible on reminding Government that continued additional taxes will even further erode our international competitiveness.

We would like to take this opportunity to thank all who participated in the 2011 Export Awards across Australia and congratulate those who won. The awards program is a wonderful vehicle for exporting companies to review their export strategies, reward their hard working staff and measure their performance against their peers. It would be remiss of me not to make mention of the six outstanding people who become Australian Export Heroes this year. Their extraordinary contribution to building Australia’s international business capability and our export culture was recognised at Government House in Queensland in June.

As a sound believer in the value of collaboration, the Institute has worked closely this year with a whole range of organisations including Universities, associations and government agencies. We would like to thank all our partners and sponsors for their support this year and we look forward to working with you in 2012 to play our role in driving Australia’s export performance. Especially though, we thank our members and friends for not only their support but their wise counsel, which is often drawn upon. It’s greatly appreciated. 

Although next year will once again be tough, the Institute has on the agenda some exciting initiatives a number of which will be revealed quite early in the year. All these initiatives are aimed at building capability and performance in International Trade. We wish you all a safe and happy festive season and look forward to attacking the challenges of 2012 with your support. And please remember, if you are a member and you have issues you would like taken to government or queries relating to the process of International Trade please send them to us; it is what we are here for.
Ian Murray- Executive Director, Australian Institute of Export

Export in 2011/2012

As 2011 draws to close, it is interesting to reflect on how the year shaped up for Australian Exporters. 
Even though our balance of trade is looking positive, it has been the resources sector making the running on export growth.
With the high AUD and events such as the devastation in Japan, cyclones in Queensland and floods in Victoria, new problems emerging in Europe, and the US still trying to rebuild from the GFC, it has not been a great year for many exporters.
Thank heavens for Asia!  The continuing growth to our north has kept many exporters in business and has had to make up for lower demand in established markets.
And for 2012?  Well the signals are that the problems in Europe will persist and the USA is still some time away from recovery.
So again Asia and sectors in South America, plus new markets in Africa will form the vanguard for our 2012 opportunities. Perhaps a FTA with South Korea would be a great way to start the New Year, along with progress on the Trans Pacific Partnership.
It is difficult to predict what might happen with the AUD, but it will require strategies for exporters, so as to avoid rate volatility playing havoc with export pricing.
With the Government focused on returning to surplus, there won’t be much in the way of financial support for exporters outside the EMDG scheme.
Mining and Agriculture should be strong sectors for 2012, and for others it will be finding a niche and working hard at it. Australian Exporters have proven they are strong adapters, and they have a capacity to find opportunities in the most unlikely places.  The big risk seems to be contagion from Europe impacting the domestic economy.
So with things potentially a bit slow domestically next year, export can still be the road to growth. It will require though a realistic assessment of the risk/reward of certain markets to ensure a positive return. As the (purported) old Chinese saying goes, “may you live in interesting times” and 2012 is certainly shaping up as interesting. 
Peter Mace
General Manager
Australian Institute of Export