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Globalisation has provided new opportunities for Australian businesses to start trading on an international scale. As a result, we’re seeing growing diversity across both our major export sectors as well as new and emerging markets like industry tech.
So how exactly has Australia managed to carve out our own significant niche in a range of global markets?
Strong Local Production
Australian businesses are renowned all over the world for the unique quality of our goods. From Colorbond steel to fresh fruit, Australia’s agricultural and manufacturing exports in particular are in high demand due to their superior quality when compared to other markets.
But it’s more than just our natural assets at play here. Quality control is also a key investment for Australian business owners looking to branch out into global markets. The primary foundation here is Australian businesses who secure certification to internationally recognised standards like the ISO Standards.
When local businesses combine Australia’s country-of-origin effect with official accreditations like ISO 9001 certification, they can easily open pathways to foreign markets and perhaps even apply for high-value tenders. This is also why ISO Certification is essential for Australian materials manufacturers looking to strike a deal providing timber, aluminium and other raw materials to global construction industries.
Iconic Export Industries
Australia is renowned for possessing three major export industries: agriculture, materials and mining. It’s not hard to see why Australia exports at such a high level. We’re blessed with natural resources like iron ore, coal and aluminium oxide, which are sought-after commodities all over the world. The Land Down Under is also known for its farming industry, with products like cotton and wheat being incredibly popular with foreign consumers.
But there are actually other export markets experiencing growth in recent years, including tourism and homewares/consumer goods that have been produced using Australian timber and other Australian-made materials. According to research from the Victorian Chamber of Commerce and Industry, 70% of local businesses said that being based in Australia is a competitive advantage when exporting goods. Moreover, Australia ranks second in access to markets with Free Trade Agreements, with its biggest trade partners being the USA and China.
Australia’s export-heavy economy is a boon to local businesses of all sizes. While the domestic market generates plenty of demand, the sheer number of new businesses and established juggernauts means that competition is fierce. The ease with which local companies can tap into foreign markets gives them an additional revenue stream and allows even newer businesses to thrive.
High Adoption Rate of Digital Technologies
Among Australia’s greatest strengths are its access to a vast array of digital technologies and having a populace that’s skilled enough to wield them. High-tech tools such as e-commerce platforms, online communication tools and inventory management software have combined to streamline the process of exporting products overseas, making exporting a viable strategy for even smaller businesses.
Tasmania in particular is a growing hub for digital innovation. Hobart is growing a thriving startup culture and boasts plenty of industry talent. As a result, some Australian corporations are looking to Tasmania to establish a south coast HQ over Melbourne and Sydney. This includes tech-based businesses like Secret Lab and Biteable, both of which have offices in Hobart.
Tasmania isn’t the only state that’s famous for its growing digital prowess, however. State governments across the nation have traditionally been strong proponents of innovation, giving entrepreneurs easy access to the tools they need to grow. Yes, Melbourne and Sydney continue to be economic behemoths, but the Brisbane CBD is also becoming rapidly populated by both Australian and APAC businesses, thanks in part to the city’s more tropical climate, proximity to the wider APAC region, and to its greater availability of affordable commercial space.
Business-Friendly Environment
In some countries, startups get a very limited amount of support from their governments, which either take a hands-off approach to the economy or favour established corporations. This isn’t the case with Australia, which has some of the most entrepreneur-friendly laws anywhere. The government’s desire to encourage entrepreneurship is best embodied by the numerous small business subsidies available to startups around the country.
Besides receiving government support, startups also thrive due to the domestic market’s natural tendency to buy from independent suppliers. Aussies have a natural scepticism towards large corporations, which means that they’re much more likely to give their patronage to a small, local business than to a massive multinational corporation.
All in all, when a country’s economic landscape is 98% small business, industry regulations are designed expressly to build up startups and SMEs, making Australia one of the most accessible regions for APAC businesses to flourish.
Strategic Geographical Location
Besides boasting a highly-educated workforce and business-friendly laws, Australia is also blessed with a fantastic geographical location. Being one of the largest geographic regions in APAC, Australian real estate is highly accessible to some of the world’s most quickly-developing economies.
Australia’s location in the APAC region provides the country with several key benefits. For one thing, Australia’s geographic placement grants its access to the massive Asian market which accounts for around 60% of the world population. Australia also lies in close proximity to large manufacturing hubs like Vietnam, China and Bangladesh, which allows local firms to produce their goods at competitive prices.
Over the years, Australia has also acted as a gateway between the APAC region and the rest of the world. While its location is closer to Asia, Australia also has many cultural similarities with the US and Europe, as well as trade agreements with individual countries on every continent. Australia’s strategic location not only allows us to benefit from the rapidly expanding Asian market, but also facilitates trade with the entire world.
Australia Poised to Stay a Strong Trade Partner Across APAC & Beyond
Over the past decade or so, Australian companies have seen plenty of success on the international scene. And this isn’t just limited to big businesses, either. With globalising consumer bases and the growth of Australian-made goods across agriculture, construction materials and other markets, Australia is in a strong position to serve as a major trade partner for many of our APAC neighbours as well as other nations across the globe.
It’s not difficult to see why our local businesses are doing so well. Thanks to a unique combination of a strong export economy, access to the latest tech, a business-friendly environment and our fantastic geographical location, Australian companies have all the tools they need to compete on a global scale. Whether you’re an Australian entrepreneur trading out of Gawler or heading a startup in the Brisbane CBD, you can make use of all these advantages to break into overseas markets.
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