More than 40 Australian companies successfully expanded their operations to the UK last year with the help of UKTI, joining around 1,000 Australian businesses that are already operating there.

The competition invites those looking to expand into the UK to submit their business plan online by 3 February 2012, with finalists to be announced later that month. Go UK winners will be flown return by British Airways to London, and will be offered meetings with potential business partners, contacts and networking opportunities, a free limited company, business services and ongoing support from UKTI.

Director General of UKTI in Australia and New Zealand Richard Morris, says now is the opportune time to launch in the UK; especially those businesses with an eye to expand further into Europe.

“The UK is the easiest place in Europe to do business and has the least barriers to entrepreneurship in the world. Just as Australia can be a gateway to Asia, the UK is the gateway to Europe and a combined population of around 500 million people.”

Promoting the UK as the world’s sixth largest economy, Morris says that businesses of all sizes should be looking to apply to Go UK. “Everyone has heard about Macquarie, Westfield, BHP Billiton, NAB and others at the big end of town. But not so many people know about the SMEs that crack the UK market every year.”

Adding that the UK’s economy is poised to grow with the Olympics just around the corner, and that the Australian dollar is continuing its strong value, Morris is keen to promote Go UK as a promising entry into the market, following the success of a similar initiative, UK Market Entry, run last year.

To enter, visit here.

Cahn dispelled a few myths about the UK’s economy, pointing to its solid economic growth in this year’s June quarter as well as falls in unemployment and an encouraging 15.5 percent hike in exports.

According to UKTI, the UK is the second largest investor in Australia with $24.3 billion on our shores. It is also Australia’s fifth largest trading partner, worth almost $500 billion.

The strong Australian economy is also a factor in the UK’s increasing interest, said Richard Morris, British Consul-General and Director-General of UKTI Australasia.

“Many British companies are looking at the Australian market right now because of Australia’s continued strong economic performance, with 1.2 percent growth in the June quarter, and the competitive exchange rate,” he said.

“At UKTI Australia, we’ve never been busier and this surge in business should be beneficial to both of our
economies.”

The delegation will meet with Westpac Banking Corporation for a business and economic briefing on the Australian market and Curwoods Lawyers for an Australian legal and accounting briefing.

The British Government’s trade and development arm has designed the UK Market Entry competition to assist Australian businesses looking to expand into the United Kingdom. Exporting to the UK offers a great springboard into the rest of Europe and the world.

All you need to do is register your interest online, and then submit an executive summary of up to three pages on your plans for expansion.

To enter the UK-Market Entry competition, go to www.ukme.org.uk

To find out more about UK Trade & Investment go to ukinaustralia.fco.gov.uk/en/business

Applications close on Friday 17 September, with executive summaries due by Friday 22 October.

Billed as “the world’s easiest business competition”, the competition is designed by UK Trade & Investment to expand trade links between Australia and the United Kingdom, and strengthen a historically strong trading relationship.

Ranked the seventh largest investor in the UK, Australia has increased its projects to the motherland in the last year, despite overall investment in the UK dropping by seven percent. However, the UK fared well against continental Europe, where investment fell by 10 percent on average.

Prime Minister David Cameron maintained the importance of inward investment. “Attracting and retaining inward investment is hugely important for our economic recovery. We are determined to deliver the pro-business environment investors need; getting the deficit down to create certainty and stability, cutting business taxes, delivering flexible employment and cutting red tape and regulation,” he said.

“Whether your company is established here, expanding here or relocating here Britain is back open for business and it’s going to be better than before – and better than the competition.”

Paul Noon, director of UK Trade & Investment in Australia, said the figures were encouraging. “The continuing strong results from Australia clearly demonstrate the high level of interest Australian companies have in the UK market – it’s the natural European investment destination for Australia,” he said.

“The continued economic strength of the Australian economy and the Aussie dollar, as well as the UK’s overall attractiveness as a destination for FDI, means it’s a great time for Aussie businesses in the UK.”

Businesses such as virtual office providers Servcorp, employment agency The Sarina Russo Group and Macquarie Bank have projects in the UK.

Scotland’s energy sector is incredibly dynamic in terms of innovation, development and diversification, and the technology and expertise developed in the oil and gas industries have served the country well in making the shift to renewable energy.

The Scottish Government has set the most ambitious renewable energy targets in Europe, hoping to create 50 percent of Scotland’s electricity through renewable sources by 2020. Australian targets are currently much lower, with legislation now in place to ensure that 20 percent of Australia’s electricity comes from renewable energy sources within the same time frame.

Australia, with its vast continental land mass, is rich in natural resources and many forms of renewable energy including solar, wind, geothermal, wave and tidal, bioenergy and biofuels. There are a number of opportunities for Australian and Scottish companies to access industry-leading expertise and share knowledge resources. With both a resilient economy and proximity to the fastest growing region in the world, Australia’s clean energy sector is poised for growth, and there are several lessons we can learn by looking to our Scottish cousins.

Oil and gas

Oil and gas remain the cornerstones of the Scottish energy industry. Decades spent recovering oil and gas from the North Sea have enabled Scotland to develop vital expertise. Scottish waters contain the largest oil resources in the European Union and Scotland itself is the European Union’s largest petroleum producer. As a result, the country boasts a proud history of technology and service innovation in the sector and expertise in project management, education and training, health and safety, production optimisation and asset management, and integrity.

While Scotland’s oil and gas industry continues to flourish, the knowledge and capabilities developed have proven valuable in diversifying to renewable energy. Scotland’s skills and experience in offshore oil and gas operations have proven effective in its offshore marine sector. Similarly, skills in engineering and the manufacturing of large steel structures have become easily transferable to the wind sector.

Some of the world’s largest energy companies have identified Scotland as an attractive place to invest due to Scotland’s favourable energy resources, extensive skills base, renowned academic sector, and positive business environment.

Renewable energy

The renewable energy industry is characterised by the same qualities of vision and innovation that define the Scottish oil and gas sector, with Scotland recognised as a world leader in deep water offshore and onshore wind energy and tidal and wave power.

Wind energy: The country leads the world in the development of deep water offshore wind farms, recently deploying two of the largest capacity turbines ever constructed. The planned UK development of over 30GW of offshore wind over the next 10 years will provide huge opportunities for business across a wide range of activities.

Wind energy is a growth market in Australia, and companies are in a great position to take advantage of key learnings from Scotland’s expertise in this area. Australia has some of the best wind resources in the world, yet wind energy accounts for less than 0.4 percent of electricity generated for public use. With a significantly larger landmass, and strong winds, there is no shortage of land on the Australian continent suitable for wind farm technology installations.

Scotland’s deepwater offshore wind capabilities draw on more than 40 years experience in deep water offshore oil and gas drilling. Like Scotland, Australia has significant capabilities in oil and gas production that could be adapted to further develop its wind energy sector.

Marine energy: Scotland provides 25 percent of Europe’s tidal energy and 10 percent of Europe’s wave resource. Wave heights in Scottish waters are some of the best in Europe, with only Ireland and Norway sharing a similar position. The European Marine Energy Centre, located in Orkney, Scotland, is a full-scale testing, accreditation and development centre for wave and tidal devices. Marine energy experts from around the world come to Scotland to test new technologies, putting Scotland at the cutting edge of device technology in marine energy.

In Australia, the source for wave and tidal energy is inexhaustible and abundant, with the Southern Ocean being one of the world’s largest and most consistent wave energy resources. Research by the Federal Government and wave energy developer Carnegie Corporation reveals that wave energy resources could generate 35 percent of the country’s base power needs. Regions such as Port MacDonnell in South Australia, Portland, Warrnambool and Philip Island in Victoria, Albany and Geraldton in Western Australia and parts of the Tasmanian and New South Wales coastlines are optimal sites for wave energy plants.

Listed on the Australian Stock Exchange, Neptune Marine Services is one example of an Australian company that is building its presence in Scotland’s energy sector. Headquartered in Perth, Western Australia, Neptune Marine Services provides engineering solutions to the oil and gas, marine and renewable energy industries, and employs more than 500 people internationally, including 100 employees in Scotland.

Incentives in energy

Through its international economic development agency, Scottish Development International, the Scottish Government also offers a range of incentives for Australian companies looking to develop energy technology in Scotland; for further information, visit www.sdi.co.uk. In addition, there are a number of opportunities for partnerships between Scottish and Australian businesses operating in the sector.

—Iain Steele is the country manager of Scottish Development International in Australia and sits on the NSW Council of the Australian British Chamber of Commerce.

The money, from the Federal Government’s Promoting Australian Produce (Major Events) program went towards a series of promotional events in the UK to coincide with the prestigious London International Wine Trade Fair. The UK is Australia’s second largest export market for bottled wine, worth almost $489 million a year.

“Australia’s First Families of Wine is a collaboration of some of the most famous and trusted brands in the industry who have come together to promote and market quality Australian wines,” said Minister for Agriculture, Fisheries and Forestry Tony Burke.

“I am strongly supportive of the Australia’s First Families of Wine initiative – Australia makes some of the finest wines in the world and they deserve far more attention overseas.”

“This grant will now assist us to take the premium Australian wine message to the wider global audience whilst also signalling a strong endorsement of the AFFW’s objectives,” said AFFW member Colin Campbell, from Campbell’s Wines in Rutherglen.

For more on the Promoting Australian Produce (Major Events) program, see www.daff.gov.au/ausproduceevents or call 1800 631 715.

“From communications and transport, to product development and marketing, innovation is constantly transforming the world of business. Much of that innovation is taking place in the UK through exciting collaborations with businesses from around the world,” said Richard Morris, director-general of UK Trade & Investment Australasia.

The competition runs until 30 July, after which three people with the most compelling predictions will each win two business-class tickets to London, plus a week’s accommodation, where they will meet industry leaders and discover how the UK can be their springboard for global growth.

Submit your prediction to the Your Business Tomorrow campaign (www.yourbusinesstomorrow.com) to be in the running. Shortlisted predictions will be voted on in July.

Rise of the Phoenix

The Bronze Age was thousands of years ago, but in the form of an innovative Australian exporter it has enjoyed at least an economic renaissance of late. Phoenix Foundry, located in the small New South Wales town of Uralla, has enjoyed a steady growth thanks to a downturn-proof trade: death.

“Our bread and butter comes from bronze plaques that are put into cemeteries. People continue to die, unfortunately, so we’re in a completely different environment to luxury items,” says chief financial officer Monicka Baird.

While Phoenix have been known to do one-off plaques for prestigious sites such as the rising sun on Sydney’s Anzac Bridge, and the coat-of-arms in Parliament House and the Australian War Memorial in London, it owes the bulk of its success to the repeat business of cemeteries worldwide.

And success hasn’t just been financial, says Baird, noting that having overseas clients has improved their production efficiency and innovation. “We use bronze alloy of the highest quality, which minimises failures, so we can send the plaques out quicker. Because the quality of the product is so good and we can make an infinite number of styles of plaques, it means we’ve set ourselves apart to other companies in the marketplace,” she says. “It’s about selling really good product in good timeframe, then you’re giving the customer what they want.”

Its challenge in the past couple of years has been one of growth, including having to increase capacity and efficiency without affecting customer service. Coming from a small town, the business also places great importance on ensuring a ready supply of talent, Baird notes. “The reason we’ve been able to rise out of the GFC is our people. They’re skilled at what they do. We have a very tight group of managers who work together closely to the common goals that the company has, and that all comes down to the quality of the product and the service we give our customers.”

Phoenix’s next move will involve this winning combination of the right people and the right product. The foundry has strong footholds in Canada and the United Kingdom and is on the lookout for their next destination. “We’re constantly looking at countries around the place. It comes down to research, down to someone on the ground doing the legwork, talking to the customers and listening to what they need,” says Baird. “Get someone on the ground who understands the customers. When you have that right, it spreads via word-of-mouth.”

The business also has some new lines emerging and a development that could “revolutionise” bronze making, according to Baird, though of course she can’t elaborate. But there’s no doubt constant innovation has proved part of a good formula.
“We have a very strong research and development team and we’re constantly researching and developing new products for the marketplace,” Baird says. “We don’t go out there and compete with existing markets unless we can provide something that is new and interesting. It’s certainly the innovation that wins us business.”

Don’t think that the business’ ambition stops there, either. Like the bronze it produces, Phoenix Foundry wants to be around for a long time, she remarks. “We’re hoping to be the best producer of this product in the world, and we think we’re very close.

Liquid gold

Of all the industries to suffer during the global economic downturn, the alcoholic beverage sector should not have much trouble staying afloat. After all, many people turn to alcohol to celebrate—or commiserate. However, the past 12-18 months hasn’t been easy, admits Glenn Cooper, chairman and marketing director of Coopers Brewery, but there have been pockets of international growth that have won them unexpected success. “We’ve opened an office in New Zealand and that has had terrific growth; we’ve had a threefold increase since we opened about eight months ago.”

Coopers has also begun its entry into two large and difficult markets: the United Kingdom and the United States. In England, it has seen some success as a niche product sold through wine club Bibendum, which offers the beer to its membership: “They like to make offerings to their members of products that are a bit harder to get and they’ve done quite well with that.”

While the USA has been difficult due to the rise in the Australian dollar against the greenback, Cooper has faith that the brand will do well there. “We have a great belief in the US because the craft beer market is growing and Coopers fits nicely into the craft beer market,” he says. “It has a lot of strength in cities like Chicago, New York, San Francisco, those trendy Sydney-style cities. You now see bars only selling craft or upmarket beers.”

The other side of Coopers success is the renewed interest in home brew worldwide. According to marketing manager of Brewing Products Scott Harris, Coopers owns about 60 percent of the world’s home brew market. “Traditionally the home brew markets are the ones that are highly taxed on alcohol: Australia, New Zealand, Canada and Scandinavia. Most people start making it to save money but what happens over time is taxes change and then people pick it up again as a hobby,” he explains.

Of the countries where home brew is gaining popularity, Harris points to Canada, which is undergoing what he describes as resurgence: “Beer is relatively expensive still, and they’re quite big beer drinkers. We’ve gained new distribution through the supermarket trade, which has helped.”

The UK is growing at the premium end as drinkers move away from everyday beers and try their hand at their own creation, notes Harris, and elsewhere in Europe there are countries emerging as burgeoning future markets. “Some of the former Eastern bloc countries like Poland are just starting to grow,” he says. “They drink a lot of beer and it’s more of a hobbyist thing at this stage. We have interest in places like Hungary as well. All those Eastern bloc countries are quite big beer drinkers but it depends on what their income level is as to what they pay for their beer.”

Across Asia, the price of beer is low, so it’s surprising to learn the market there is also steadily growing. Harris says customers in that region consist of a combination of hobbyists and microbreweries. “There are guys who will brew it because it’s a hobby. Beer is relatively cheap in Asia so no one’s going to do it to save money, really. But then there are other markets where in China or Vietnam for instance they have lots of little restaurants and some of them are brewing the beer and selling it in their own restaurants rather than brewing it for their own consumption.”

Overall, it’s the burgeoning middle class that will give Coopers its future market. “We’re keeping an eye on the former Eastern bloc, and we’re always scanning for what’s happening with tax and increasing income. We’re always looking for emerging markets where we think we’ll fit.”

Australia will feature as the focus country for this year’s festival and showcase the musical talents of artists such as Sarah Blasko, Eskimo Joe, Art vs Science, Paul Dempsey, Philadelphia Grand Jury and Teenagers in Tokyo.

Austrade’s senior trade commissioner to the UK Kym Fullgrabe said the initiative had been secured through Sounds Australia, “a really powerful initiative for the Australian music industry,” he said. “Austrade is thrilled to be a partner in this program to unify our brand and enhance our collective efforts to promote Australian music internationally, with an even stronger coordinated approach across government and the music industry.”

The Australian contingent at The Great Escape has been in the making for four years, he said.

“We’re really excited that they are getting behind The Great Escape and have managed to have Australia be the focus country in 2010,” said Bill Cullen, nanager of Aria award-winning artist Sarah Blasko.

The Great Escape takes place in Brighton, UK on May 13-15, 2010.