Transcript UKTI SW Webinar June 2013 - West Midlands Economic Forum

Scott Strain
UKTI Australia Director Trade
A presentation on the Australian Business Horizon for the
World Trade Fair in the Black Country
UNCLASSIFIED
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In partnership with:
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Why Australia?
• You’ll feel at home immediately:
• Over 1,000 UK companies and more Brits than in any other country
• Very similar business, legal and regulatory culture
• Best performing OECD country economically, with good growth prospects
• Strong Australian dollar making UK goods and services more affordable
• Closely linked to fast growing Asia-Pacific nations
• Significant opportunities for UK companies in oil and gas, health, ports,
transport infrastructure, ICT, education, low carbon, financial and business
services
In partnership with:
A comparison with Australia
Australia
UK
Population
23 million
62 million
Global GDP ranking
12th (IMF 2012)
7th
GDP growth est. 2013
2.5%
(OECD May 13)
0.89%
GDP per capita ($US 2012) $67,700
($US 2012 IMF)
$28,032
Ease of doing business
(World Bank 2011)
10th
(WB 2012)
7th
Unemployment (April
2013)
5.5%
(May 13 ABS)
7.8%
Land mass – sq kms
7 692 000
242 000
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In partnership with:
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UK Exports to Australia
• UK exports to Australia grew by
80% from 2007-2012 to £10.3 billion
• Total UK goods exports growth
was flat in 2012, but to Australia still
increased 6%
•7th biggest market for services
exports and 18th largest for goods
• UK is 2nd biggest foreign direct
investor in Australia
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
UK Exports : Goods v
Services Goods
Services
2007 2008 2009 2010 2011 2012
In partnership with:
Australia: it’s bigger than you think
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Rail Projects in Australia
Projects with committed funding
Australian Rail and Track Corporation: Upgrades to the Northern Sydney
Freight Line between North Strathfield and Newcastle, Commenced in
2012, Expected Completion: 2016; Cost: $1110m
Australian Transport and Energy Corridor: Construction of an inland railway
from Surat coal basin to the Port of Gladstone, Construction to commence in the
coming months, Expected completion: 2014; Cost: $1000m
Queensland DTMR: Cross River Rail – 18km north-south rail line in the
Brisbane CBD, Plans announced
Expected Completion: N/A; Cost: $4500m
The North West Rail Link A 23 kilometre extension –including 16.9 kilometres
in tunnel- to the existing City Rail network from Epping to Rouse Hill .
Estimated capital cost of the project is $7.5 to $8.5 billion.
Perth Rail Public Transport Package $500 million over 10 years to deliver a
public transport project in Perth", either the $1.8 billion MAX light rail
system or the $1.9 billion rail line to Perth Airport.;
In partnership with:
The Nation Building Programme
Potential Projects
NSW State Light Rail -project cost is an estimated $1.6 billion.
NSW State Rail Authority: Western Express City Rail Service –
new underground platforms at several central stations,
Start date 2015, Expected Completion: N/A Cost: $5430m
Melbourne Metro - $3 billion contingent on matched funding from
the Victorian Government, flagged for delivery as an availability
Public Private Partnership (PPP), with the Commonwealth
Government also noting an additional provision to support future
availability payments;
Leah Gartner
Senior Trade
Development Manager
Railways, Advanced
Engineering and Marine
[email protected]
$75.0 million for the Port Botany rail line upgrade to improve
access and connectivity between the port and the future Moorebank
Intermodal Terminal and future planning for the Metropolitan Freight
Network. Access and connectivity between the port and the future
Moorebank Intermodal Terminal and future planning for the
Metropolitan Freight Network.
In partnership with:
Major Road Projects
Major Road Projects
Opportunities
Construction
West Connex, NSW
Design,
East West Link, Victoria
Project Management
Bruce Highway, Queensland
Engineering,
Project Finance & PPP
Drainage,
Antonia Yendell
Senior Trade Development
Manager
UKTI Melbourne
[email protected]
CCTV,
Road safety management and
providers of building equipment,
materials, and supplies.
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In partnership with:
Resources
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In partnership with:
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Major offshore LNG projects
Richard
Goldsmith
Senior Trade
Development
Manager
Richard.Goldsmith
@fco.gov.uk
In partnership with:
Projects we are targeting
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Australian opportunities: mining
─ As the mining boom moves from
phase 2 to 3 in 2013, the nature
of opportunities is shifting
─ The focus on cost-control is
critical for identifying
opportunities
─ Hi-tech machinery, eg.
Automated, remote-control
equipment.
─ UK export potential is not limited
to mining-specific goods
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Projects: QLD & WA
Carmichael Coal Project ($6.8bn)
Adani Mining. Feasibility Stage.
Roy Hill Iron Ore Mine &
Infrastructure ($9.5bn)
Alpha ($10bn) and Kevin’s Corner
($4.2bn) Coal Projects
Hancock Prospecting. Production
expected 2015.
GVK/Hancock Coal. First coal
2016. Work package on ICN
Gateway
Oakajee Midwest Development
($4bn)
Galilee Coal Project ($8.8bn).
First coal 2016
Waratah Coal. First shipment 2015
South Galilee Coal Project
($4.2bn). At Feasibility stage
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WA State Govt/private. On hold
pending review.
West Pilbara Iron Ore Project
($6bn)
Australian Premium Iron JV. First
shipment 2015
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Australian opportunities: ICT
ICT contributes 4.6 % of Australia’s GDP
(AU $82 billion) IBSA Dec 2010
Building v fast broadband network to
cover 95% of population (in 8-10 yrs)
At A$35.7 billion it’s the most
expensive infrastructure project in
Australia’s history
Opportunities in e-Health, e-Learning,
digital entertainment, e-commerce for
mobile
Internet usage in Australia is 90%
penetration (5th best in the world)
Contact [email protected] for
more information
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Australian opportunities: e-commerce
Australians spent around £7 billion
online in 2011
Online sales grew 90% from 2010 to
2011
Opportunities in sporting and
outdoor goods, cosmetics and
beauty products, books, media and
fashion
Goods under $1,000 bought
overseas do not attract 10% GST
Contact [email protected]
for more information
In partnership with:
Australian opportunities: hospitals
Major projects
New South Wales Hospital building programme will see $10 billion spent over
the next 5 years on new and redeveloped hospital facilities.
Projects and programs already underway:
• Major hospital upgrades at Blacktown (due 2016), Campbelltown (2016), St
George (2014), Hornsby (2016), Bega (2016), Dubbo (2014), Wagga Wagga
(2017), Tamworth (2016), Lismore, Port Macquarie (2015) and Kempsey (2016).
• Planning is underway for new hospitals in Byron Bay, Maitland and Sydney’s
Northern Beaches to meet the future health demands of these regions.
More info: http://www.hinfra.health.nsw.gov.au/projects/capitalprojects?5701_p=1
Contact: Joe Dodd at [email protected]
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Pharmaceutical Industry
─ No major R&D facilities for major pharmaceutical
companies in Australia other than clinical trials
─ Large pharmaceutical and generic manufacturing
capabilities
─ In 2012, Australian pharmaceutical market was valued at
A$13.84 billion - forecast to reach A$16.1 billion by 2016
─ Pharmaceutical imports A$10.5 billion and exports A$3.5
billion
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Biotechnology Industry
─ Australia is the leading biotechnology location in the Asia
Pacific Region. 6th largest in the world behind the US, UK,
Canada, Germany and France
─ Around 450 core biotechnology companies amongst an
industry total of 1200 enterprises
─ World class scientific, medical and agricultural research
base
In partnership with:
Routes to Market
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What to expect from Australian
importers
•Value for money over price
•Cautious about changing suppliers
•Australian products preferred but
they are open to international
goods & services
•Go with your best price – avoid
haggling too much
•Expect familiarity and a direct
approach
•Rigid enforcement of standards
and practices – get it right first time!
Import Channels & Distribution
•Internet: sell online through a .com.au site
•Licensing your product or service
•Importers & Wholesalers: usually small & specialist. Few general
importers,
•Distributors: numerous, small and usually specialist
•Manufacturers & End users
•Retailers: usually source locally & use importers for smaller orders
•Establish a local presence and sell directly
Typical Distribution Channel costs
(Retail example)
Overseas buying agents/commission agents 3-6% FOB
Importers & Wholesalers selling volume consumer goods 40-80% on
landed duty paid goods
Discount Department Stores 35-40% of the selling price
Department Stores 40-75% of the selling price
Small Retail 50-100% of the selling price
Supermarket Chains 15-35%
Quoting & Getting Paid
US dollar the most common currency
Most exporters expect Free On Board
or Free Carrier quotations but;
•Those importing commodities often
prefer Cost & Freight terms
•Most Australian importers take out
their own insurance so don’t expect
Cost Insurance and Freight or Cost
Insurance Paid terms
•Remember that any customs duties
will be based upon the FOB price
•Offer your best price, don’t haggle too
much.
•Letter of Credit common place
•Remember to factor in delivery times
to your terms of payment
Key Elements for Success
 Set medium / long term strategies
 Set reasonable marketing plans and sales targets and review
them regularly
 Committed distributor - right for your product
 Committed supplier
 Complete openness - pricing / margins
 Service is paramount
 Get involved
 Allow sufficient time
UNCLASSI
Key Lessons for a
Market Visit
• Think Australian - NOT POM,
sell to Australians for volume
• Add value vs local offering
• Support distributor
• Price-points (understand
margins and currency)
• Need to innovate
• Create volume / increase rate of
sale to win both trade and
distributor support
In partnership with:
How UKTI can help?
Passport to Export
Gateway to Global Growth
Export Market Research Scheme
Overseas Market Information
Service
Trade show Access Programme
Trade Missions
Check out our presentations on
WWW.Slideshare.net
[email protected]
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