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Updated Jan 29, 2009
2009 EFIC Global Readiness index
Today, Australian businesses are experiencing the benefit of increased demand and opportunities of globalisation.
Yet in the face of the global credit crisis, they are also up against a fluctuating Australian dollar, tightening
liquidity and a fall in commodity prices.
Has the recent credit crisis caused a rethink of export business models? How have the trends and outlook for exporting changed over the last 12 months? And, how ready are Australian businesses for the risks and challenges of today’s ever-changing international marketplace? In other words, what is their current state of ‘global readiness’?
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, is currently conducting its annual Global Readiness index (GRi). The GRi, officially launched last year, is a comprehensive study of the current drivers, decision-making processes, risks and barriers that Australian exporters and offshore investors face in an increasingly globalised and, at times, uncertain business world.
This unique study will provide Australian business with a comprehensive picture of the opportunities and challenges on the path to participating in today’s global supply chains. It will also compare results with those from the 2008 survey, and is expected to show some interesting insights as a result of the current global economic uncertainty.
“A year can be a long time in business in today’s volatile international environment. This year’s GRi results will provide some insight into both the continuity and change of Australian export businesses, and highlight the risks that they face when supplying their products and services overseas,” said EFIC Managing Director, Angus Armour.
Last year’s GRi surveyed almost 500 Australian businesses across the country; the majority of these were SME exporters.
The survey found that up to 73% of Australian exporters relied on retained earnings to finance their overseas expansion, only 35% used a debt facility from an Australian financial institution, and as little as seven percent from a foreign institution.
92% of respondents said they were expanding offshore in order to increase revenue or market share. Equal second was to ‘take control of the supply chain’ and ‘decrease costs’.
The 2008 survey also found that businesses primarily regard offshore expansion as a strategic path to market and revenue growth rather than a defensive ploy to protect what they already have.
Respondents said that inadequate knowledge of overseas markets (76%), and lack of finance (67%) were the two biggest obstacles they faced when seeking to expand overseas.
Finance as barrier was even more apparent among respondents who were planning to export for the first time. 43% of these respondents nominated finance as the major barrier to their plans.
You can view the full 2008 results online at: http://efic.gov.au/gri
All survey participants this year will again receive a customised benchmark report comparing key aspects of their export and globalisation strategies with the business trends revealed by the aggregate results from within their own industry sector, as well as Australian businesses overall.
Participants will also have access to the full GRi report when published in April 2009.
The online survey closes on 28 February 2009 and only takes around 10 minutes. To complete the survey visit www.efic.gov.au/gri/ajba.
The first 250 respondents to complete the Global Readiness index will receive two Hoyts movie passes.