Export education for business
Case study: Macnaught
For more than six decades, Macnaught has manufactured Australian-designed grease guns, oil pumps, fuel pumps, hose reels and flow meters from its facility in Turella, NSW. Known as a premium quality producer, Macnaught exports to more than 60 countries worldwide.
“As an Australian producer our manufacturing cost is high in relation to many of our overseas competitors and we are at the top end of our market in terms of quality. Consequently, it would seem impossible, in these troubled times, to continue to expand our overseas markets,” says Steve Royles, customer service manager at Macnaught, indicating the challenges for exporters.
“We believe in not only finding active distribution overseas but working with them to provide the products that are correct for that particular market and building a relationship with them for their market, not the ’one size fits all’ approach of many companies.”
In this respect, education is important so that they can understand how trade is conducted in that country. “Economic, geographical, political factors all must be investigated. Austrade, AIEx, banks, freight forwarders and trade organisations provide great information if you know where to look and bother to ask,” he suggests.
The result is a product that better fits the destination market, says Royles: “By tailoring our offer we immediately enhance it in the estimation of our local stakeholder and encourage them to regard our product as something special.”
To offer this level of service to all its markets, Macnaught’s administration team is attuned to customer needs, which means it can understand the market and respond accordingly. Education has certainly been of value, Royles adds.
“All of my team have attended the AIEx Export Documentation and Procedures course as well as various courses offered by a number of freight forwarders and the major banks. By understanding foreign exchange issues, the best trade terms to apply, packaging issues, transportation and customs clearance, we offer a formidable ‘add on’ to the product itself.”
And exporters should continue to acquire knowledge so they can keep on top of relevant issues, he says: “Managers must also be across the current economic and social issues in the various countries in question: southern Europe is a current example. Again, the various departments in the government provide general updates, but further research through overseas and trade organisations will give you the specifics for your particular product.”
Helpful links
Austrade: www.austrade.gov.au
Australian Customs: www.customs.gov.au
Australian Federation of International Forwarders: www.afif.asn.au
Australian Institute of Export: www.aiex.com.au
Custom Brokers and Forwarders Council of Australia: www.cbfca.com.au
Department of Foreign Affairs and Trade: www.dfat.gov.au
Export Finance & Insurance Corporation: www.efic.gov.au
Export Finance Navigator: www.exportfinance.gov.au
International Chamber of Commerce (Incoterms): www.iccwbo.org/incoterms
IP Australia: www.ipaustralia.gov.au
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