Doubling the number of Exporters The task

1
Doubling the number of ExportersThe task the
tools
AFIF 2003 Annual Conference

• Presentation by
• Frank Walsh
• State Manager NSW/ACT
• Australian Trade Commission

2
Doubling the number of exporters

• 50,000 exporters by 2006/7.
• An increased from 25,000 in 2000/1.
• Why the challenge?
• Can it be achieved?

3
Exporters Global Comparison

• Currently 4 of Australian business export
• the same as the US low by world standards
• Austria 68
• Finland 58
• Netherlands 57
• UK 48
• France 43
• Spain 34
• Canada 15
• Scope and challenge to increase real benefits

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Real benefits

• Export revenue
• Doubling the number by 2006 could general
  additional export revenue 5 - 40 billion over 5
  years.
• Economic benefits
• Business benefits from economic growth from
  exposure to international opportunities
  efficiency gains through knowledge transfer.
• Social benefits
• Improve labour market outcomes for firms and
  workers.
• One in five jobs in metropolitan areas export
  related.
• One in four jobs in regional areas export
  related.

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The key trends a new generation of exporters

• Small is beautiful
• Knowledge is power
• Generation X is becoming generation eXport
• The regions are reviving
• Internationalisation is opening up new
  opportunities
• for SMES

6
Micro and small businesses are growing in
importance
Growth in number of exporters and export revenue
by size1,1994/95-97/98 Average annual rate of
change2, percent p.a.
Number of exporters
Exporter revenue
Micro
Small
Medium
Large
Note 1 By employment (micro 1-4, small 5-19,
medium 20-199, large 200) Note 2 See
definition in Appendix B
Source ABS, Business Longitudinal Survey
1994/95-97/98
7
But knowledge-based exports are growing faster,
especially in services
Average annual export revenue growth by industry,
1992-99 Percent p.a.
Non-knowledge-based exports
Knowledge-based exports
Primary
4.3
High-tech manufacturers
9.5
Medium-high-tech manufacturers
10.3
Medium-low-tech manufacturers
3.8
Low-tech manufacturers
5.0
Knowledge-based services
10.9
Non-knowledge-based services
7.8
Source Data supplied by ABS on DFAT, STARS
database
8
However there is plenty of export action in many
traditional sectors
Top-20 fastest growing export sectors,
1996-2000 Average export growth, percent
Non-knowledge-based exports
Knowledge-based exports
Prefabricated building manufacturing
76.5
Information storage/retrieval services
43.3
Film and video production
41.7
Newspaper printing or publishing
33.8
Accounting services
32.8
Wine manufacturing
29.7
Motor vehicle manufacturing
28.5
Shipbuilding
27.6
Market research services
26.4
Motor vehicle body manufacturing
26.3
Spirit manufacturing
25.9
Tobacco product manufacturing
25.4
Oil and gas extraction
24.9
Aquaculture
24.6
Finfish trawling
23.9
Clay brick manufacturing
23.6
Automotive component manufacturing
23.1
Data processing services
22.7
Pulp, paper and paperboard manufacturing
21.5
Plastic blow moulded product manufacturing
19.9
Source IBIS world.com 1996-2000 (sectors over
10 million in exports in 2000)
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There is significant growth in young
knowledge-based services exporters
Growth in knowledge-based services exporters by
age, 1994/95-97/98 (Percent)
4,118 exporters
5,852 exporters
100
Years in Business
4
More than 20
9
17
25
10-19
25
27
5-9
55
40
Less than 5
1994/95
1997/98
Source ABS, Business Longitudinal Survey
1994/95-97/98
10
There is still a predominance of exporters in
metro areas, but fastest growth in non-metro areas
Proportion and growth of exporters by location,
1994/95-1997/98
Proportion of exporters, 1997/98 Percent p.a.
Average annual growth in number of exporters
Percent p.a.
Average annual growth in exporter revenuePercent
p.a.
Non-metro
Metro
20
5.9
3.6
Non-metro
17.9
0.2
80
Metro
Source ABS, Business Longitudinal Survey
1994/95-97/98
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Internationalisation is more than just exporting
Percentage of internationally active SMEs by type
of activity, 2001
67
Exporting
Importing
61
9
Acquiring license/franchise
9
Joint venture in Australia
8
Global Supply chain
7
Strategic alliance in Australia
7
Granting license/franchise
6
Inward investment
5
Joint venture overseas
4
Outward investment
2
Foreign aid procurement
Source Yellow Pages business index, May 2001
12
Around 2 of the non-exporters expressed an
intention to export
Intenders
Non-exporters 96
Intenders
2
98
Non-intenders
Note 1 Non exporters surveyed in 1994/95 who
expressed their intention to export within the
next 3 years.
Source Austrade based on ABS, Business
Longitudinal Survey 1994/95-97/98
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While 50 of new exporters were accidentals 1
New exporters
Non-exporters 96
New exporters
Start- ups
Born globals 25
Intenders
Successful intenders 25
22 success rate within 3 years
20
2
Accidentals 50
98
Non-intenders
Note 1 Exporters in 1997/98 who did not export
nor express the intention to export in any of the
previous year of the survey.
Source Austrade based on ABS, Business
Longitudinal Survey 1994/95-97/98
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A whole of government approach is in place

• To support the development of a more extensive
  export culture.
• To multiply networking activities and provide
• opportunities to potential exporters to
  help them take their
• first step as accidental exporters.
• To develop a partnership approach to identify
  potential
• exporters and co-ordinate services to
  exporters to a higher degree.
• Plus new partners and new programs.

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New Exporter Development Program

• A practical program of assistance for new
  exporters.
• The program offers advice counselling -
  education
• - and Specific Market Prospects Assessment
  for the clients
• products or service
• - in up to 3 markets
• - a report on prospects and recommendations
  and up to 5
• relevant market contacts
• A practical program to expand AFIF clients
  export activities.

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Target visits and activities

• To stimulate client interest Austrade is
  significantly increasing the number of Austrade
  post staff visiting Australia 42 visits from
  mid May to end June.
• To participate in seminars and events.
• To meet with individual clients.
• And we are active in the regions not just the
  CBD.

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New Partners

• The New Exporter Development Program is delivered
  by partners under the TradeStart program.
• In New South Wales / ACT our partners include
• NSW Department of State Regional Development
• Australian Business Ltd
• Australian Industry Group
• Australian Interactive Multimedia Industry
  Association
• Dubbo City Development Corporation
• Australian Institute of Export
• They each have client targets and sales targets.

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A Progress Report

• ABS figures show an increased to 31,450 an
  increased of
• 6,450 over the year.
• New Exporter Development Program should sign up
  2,400
• this year.
• Ambition aim is to get 600 to make a sale this
  year.
• We are tracking progress carefully.
• Can AFIF play a role?

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AFIF and new exporters

• In order to help double the number of
  exporters, Austrade is
• partnering with organisations whose members
  have close contact
• with potential exporters and are in a
  position to encourage
• internationalisation.
• Scope for an Austrade-AFIF partnership may
  exist and would accord with
• AFIF objectives.
• Austrade would offer professional development
  to enhance AFIF
• members skills in export advocacy, export
  readiness, market selection,
• and strategic market entry.
• Members would then be in a position to offer
  export advice to their
• client base. Advice would be supported by
  appropriate processes and
• systems.

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AFIF new exporters

• We can jointly work to turn occasional
  exporters into long term
• exporters, and assist AFIF members clients
  grow their
• international activities in a sustainable
  manner generating repeat
• freight business for you.
• The aim of doubling the number is ambitious but
  early signs are that
• real progress is being made.
• The challenge is to maintain and grow the
  momentum and
• programs and promotions will continue to be
  important
• components.
• Partnerships are being formed with appropriate
  professional
• service providers and Austrade would
  welcome further discussions.