Australian exporters shrug off fuel, exchange rate worries
- Friday, 09 February 2007
And, according to the 2007 DHL Export Barometer, it’s European exporters who are likely to benefit most, with 65 per cent of those surveyed expecting an increase in orders to that region over the next year.
The Barometer — a joint industry survey conducted by DHL and Austrade — also found that with world economic growth at a 30-year high, 69 per cent of exporters expect a jump in orders over the next 12 months. In addition, more companies are investing in technology to facilitate trade — and the biggest supply side constraints are manufacturing capacity and access to supply chains.
“Overall, Australian exporters remain resilient in light of the dollar’s strength and high oil/fuel prices, partly due to the health of the global economy and a renewed focus on Europe as an export market,” said Tim Harcourt, chief economist, Austrade.
“A return to the more traditional markets such as Europe suggests exporters are diversifying their opportunities, although China and South East Asia continue to remain strong as key trading partners.”
The 2007 DHL Export Barometer has shown something of a role reversal, with China at 61 per cent and South East Asia at 56 per cent now both behind Europe (65 per cent) in rankings of markets where exporters are most likely to increase their orders in the coming year.
“Overall, the results of the survey are positive for our exporters. The number one ranking for Europe was surprising, but it proves that companies here are taking a global approach and are not relying on specific markets,” said Paul Bellette, strategic development group manager, DHL Oceania.
“The good news for exporters looking to increase their orders to the continent is DHL’s investment of more than US$400 million in a new global hub based in Germany, which will assist our customers to expand throughout the region.
“However, despite Europe’s ranking, China remains a key driver of the global economy and Asia-Pacific is DHL’s fastest growing region,” said Bellette.
The survey also shows that manufacturing capacity and supply chains remain key constraints.
“Over the past three years, supply chains have proved an increasing issue for exporters, up from 12 per cent as an area of concern in 2005 to 44 per cent in 2007. Consolidation of suppliers is one way exporters can reduce supply chain inefficiencies and costs,” said Bellette.
The survey results show that infrastructure bottlenecks also are an issue — though less so than previous surveys.
“The main supply-side influence was manufacturing capacity, a shortage of plant, skilled labour and capital, which suggests that contrary to popular belief, demand for Australian manufactured goods is strong,” said Tim Harcourt.
The 2007 DHL Export Barometer found that in Australia’s strong performing labour market, 80 per cent of West Australian and 79 per cent of Queensland exporters expected wage rises over the next 12 months.
“The resources boom is continuing to drive up demand for labour and fuel growth in wages. Western Australia currently boasts an impressive 3.2 per cent unemployment rate, therefore it is no surprise that workers expect fuller pay packets,” added Harcourt.
