2 March 2010
How has the global financial crisis changed the trends and outlook for exporting and investing offshore over the last 12 months? How ready are Australian businesses for the opportunities 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), the Australian government’s export credit agency, is conducting its annual Global Readiness index (GRi). The GRi is a wide-ranging study of the current destinations for Australian exporters and offshore investors, their motivations and the barriers they face in an increasingly globalised world.
Now in its third year, this unique Australian 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 2009 survey and is expected to show some interesting insights as a result of the global economic downturn.
The online survey closes on 31 March and only takes around 10 minutes. To complete the survey visit www.efic.gov.au/gri.
Why should you participate?
All survey participants will receive a customised benchmark report for their business and a discounted subscription offer from EFIC’s GRi media partner, BRW magazine.
In addition, the first 250 participants will receive two Hoyts movie passes.
What did the GRi reveal last year?
In 2009, over 720 businesses across the country participated in the GRi. Most of these were small and medium-sized enterprises. You can view a summary of the 2009 results at www.efic.gov.au/gri.
The 2009 GRi took place during a worldwide credit crunch and a severe downturn in world trade and production. Despite this, the survey results showed that Australian businesses with export and offshore operations were optimistic about globalisation and had ambitious plans for growth. Eighty-four per cent of companies with offshore operations planned to expand them, 52% within 12 months. Of respondents without offshore operations, 44% planned to go offshore, 32% within the next two years.
The overwhelming motivation for companies to globalise was to increase revenues and market share. The next most important drivers were to gain proximity to end markets and the Australian market being too small.
Access to finance was rated by far the most significant obstacle to going global. Fifty-eight per cent of respondents saw it as a barrier (a steep increase on 2008) and 34% nominated it as the biggest obstacle. The smaller the revenue of a business, the more likely that finance was a barrier.
A high percentage of respondents – 82% - relied on retained earnings to finance offshore expansion, while only 30% used a debt facility from an Australian financial institution.
Click here to participate in the 2010 GRi by 31 March and contribute the perspective of your business on how these trends have developed in the last 12 months.