Australia comes out swinging

The updated economic outlook released at the beginning of December shows an improved unemployment rate, which will have a positive impact on the Budget.

Business has played a major role in cushioning the impact of the global situation, and although there have been some job losses, reduction of working hours rather than laying-off staff has helped save the equivalent of around 200,000 full-time jobs.

The Australian economy is the one of the strongest performing economies in the world and the only developed country not to go into recession, although despite the improved outlook the economy is expected to continue to operate below capacity until around the end of 2010.

However the medium to long term prospects are bright. Australia has a diversified, modern economy with a strong services sector as well as mineral wealth. Its export markets are also diversified, with strong alignment to high-growth Asian economies as well the US and Europe.

As the private sector weakened, Government investment in the economy has had a significant impact in offsetting the negative aspects of this. And while the spending may be temporary, the gains should have a more lasting impact.

The Government’s stimulus package has played a significant part in protecting the nation’s skill and capital base, through investment in roads, rail, ports, hospitals and schools, helping to build a strong platform for future sustainable growth.

Australia is a critical market for New Zealand’s success and can provide excellent business growth, including for those companies in a position to capitalise on the opportunities created by the Stimulus Package.

A recent report commissioned by NZTE identifies that while the Kiwi do-it-yourself attitude drives New Zealand innovation, it can often be the very trait that holds us back economically.

In Australia, New Zealand has the benefit of high brand equity. The New Zealand brand is synonymous with good quality and value - and more Kiwi businesses could take advantage of this goodwill and leverage it to see improvements to their bottom line.

NZTE is working to help companies overcome barriers – whether real or perceived – to doing business in Australia. In the past six months, over 300 companies have attended New Zealand based workshops, designed to give insights into the Australian culture and way of doing business and how to maximise the chance of success here.

Also underway is the development of a social networking group of New Zealand based companies to share knowledge, lessons, successes, and war stories of Australia with each other.

With over 65 companies already registered, this is an ideal way to learn more about operating in the Australian market and, in many cases, learn from others’ mistakes.

While Australians view New Zealand products very highly, our businesses can benefit from being more proactive in their approach and, in some cases, simply pushing harder.

Having a clear and compelling value proposition and being able to articulate this well will make a significant difference to companies’ success in Australia.