Dynamic Export

Australia is a land girt by sea, so it’s no surprise we have a thriving marine sector at home and abroad selling everything from widgets to yachts, engineering services to marine maintenance.

The Australian marine industry is highly diverse, with 2,700 companies generating a $7.5 billion turnover while employing 29,000 people. There is a thriving export industry of more than $1.2 billion annually. The world-class industry is located around Australia, contributing to regional economies.

The key driver for the development of export markets is that the domestic market is limited by population, therefore to build world-class products and achieve a return on investment, Australian marine manufacturers and service businesses need to consider a global market when designing and selling products/services.

There are a number of different types of marine exporters, including companies that manufacture the product in total here, manufacturers that import certain products to manufacture here, manufacturers producing under licence, and companies that own the intellectual property and do research and development here but manufacture overseas. In terms of selling, most manufacturers go direct, appoint distributors or have agency agreements.

The global marine industry is essentially two markets: leisure and commercial. Conventionally, New Zealand, North America and Western Europe have provided the best opportunities in the recreational and leisure boating sectors, whereas Asia, the Middle East, the former Soviet bloc and South America have been regions where exporters have focused on the commercial segment. However, there is increasing interest from these areas in the leisure boating sector, with several companies making inroads into these markets.

New exporters

Opportunities for new marine exporters are highly dependent on the product and the market research undertaken by the business.

The Australian International Marine Export Group (AIMEX) organises the Australian pavilion at key international boat shows and encourages new exporters to join the pavilion or to visit the market. These visits prove invaluable for new exporters who invariably make good contacts, receive referrals to other members’ agents or distributors, and ultimately have a softer ride into the market.

However, whether you participate at a fair or exhibition or undertake some other form of market development activity, opportunities come to those that are present in the market to participate. Especially in these recent turbulent times, commitment to a market is seen and noted, if not for now, then for future reference.

Existing Exporters

There are opportunities for existing exporters through development of new and innovative products or value adding to existing products and services. They should also carefully look at the emerging markets and how they can establish their company in these markets and position for growth when it comes.

It always comes down to the energy of a company, the relationships they build with clients, how in tune they stay with the market and, of course, what value they place on R&D.

It is essential for exporters to visit their markets regularly and stay in contact with their customers. When companies are struggling to survive and everyone is looking to reduce costs, it can be an opportunity for those who have close relationships with their customers. Suppliers can collapse, and this obviously offers opportunities to competitors.

While the domestic economic growth rates in China and India sound attractive, their marine sectors are growing from a relatively small base. Potentially, the larger growth in dollars may come from aggressively attacking a market to gain share where there is already an established, significant sector for your product in operation. Mature markets such as France Italy, Spain, the UK and the USA should form a part of your balanced market development activity.

Advanced exporters

There has been a big push from both state and federal governments for marine exporters to look at the emerging markets of China and India. While there will be opportunities in the future, China has proved difficult and things have moved slowly for the marine sector. India is similar: there has been minimal infrastructure development in India and there is still a way to go before good sales come from this market.

Korea is another emerging market where AIMEX has put a toe in the water, organising the Australian pavilion at the Korea Boat show for the past two years. Progress will be slow until the infrastructure is more advanced, but this is a country where there is a real push and local government initiatives to develop a leisure boating industry.

AIMEX has a mentoring scheme for new exporters; AIMEX has a wealth of knowledge within its membership and board, so the scheme is the ideal way for advanced exporters to share their experiences. This has proved to be incredibly valuable for those who have limited knowledge of exporting and the pitfalls that they can encounter.

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