As the manufacturing industry starts to steady, there is a lot of conversation that is centred around opportunities to export into the Asia Pacific region. The region has some fascinating data that shows how so much future growth is going to occur only a few hours to our north.
1. 60% of the world’s population lives in this region
2. By 2025, it is estimated that 50% of global GDP will come from this region
3. Intra Asia trade sits at $1.6 Trillion.
For Australia there is also what we call inevitable growth.
1. 2016 Population is 24m
2. By 2025 our population will be 28m.
This is a 16% growth in the numbers of people needing products and services.
Some key points to consider:
1. You do not have to export, there is no moral compulsion to do so. You would look at these markets as one option for growth.
2. A strong position in the domestic market is necessary to have, and maintain, as the export path will require cash, management time, and management focus in order to develop. This cannot be supported without a strong ongoing business domestically.
3. The process will take longer, be more expensive, and deliver less results than you plan. Be prepared.
4. The business model that works in Australia may be completely inappropriate in another country for cultural, regulatory, and other reasons. Be flexible in evaluating and adapting your plan.
5. Take the feedback. If your plan is not working, alter your plan based on the feedback from the market. Pragmatism over dogmatism is essential.
6. Review your business systems – is it giving you the opportunity to expand?
A solution that is allowing manufacturers to gain traction in the overseas markets is NetSuite. This cloud-based system enables visibility over your entire business – manufacturers are able to scale their business without the worry of their systems failing them.