It’s an unpredictable global market right now — shipping uncertainties, broader supply chain issues and ongoing COVID-19 restrictions are making it tough to do business.
Businesses need to build resilience to survive, and there are several ways they can do this.
By adapting to change, making product pivots and entering new markets, businesses spread their risks more broadly and open up new channels for success.
Diversification can involve branching out into new sales channels or launching different products. In other cases, it’s entering international markets or expanding into unfamiliar industries.
Overcoming current market challenges
Exporters are facing numerous challenges right now: limited stock availability, high freight costs and the inability to travel among other business and industry-specific limitations have hit the export industry hard.
But it’s not all doom and gloom — with the right support success is still there for the taking.
Export Finance Australia, the Australian Government’s export credit agency, supports businesses like Malaga-based Drillcube, a mining supply and consumable business, with finance to succeed internationally.
After developing an innovative “shop in box” business model supplying mining consumables through one house, DrillCube secured an export contract to a mining operation in Papua New Guinea.
The problem was the company needed to stay cashflow-positive, but it was unable to secure private finance because its stock is held overseas.
Export Finance Australia was able to provide financial support, enabling DrillCube to deliver on its contract.
“Export Finance Australia is the cornerstone of our business — we wouldn’t have survived without it,” said DrillCube’s Principal and Director Jason Wasley.
“And with the transition to electric and the need for copper, nickel and lithium for battery generation on its way, we’re poised to enter the next 10 years in a very strong position.”
Support for businesses growing globally
Aleks Henderson, Export Finance Australia’s WA Business Development Director, highlights that exporters have become more reliant on specialist advice in the current market.
“We’ve been working more closely with our government partners such as Austrade and AusIndustry, as well as peak industry bodies such as Trade Start and the Chamber of Commerce and Industry WA, to make introductions to our customers where they didn’t already have a connection,” Henderson explained.
If you need finance for an export opportunity or are part of an export-related supply chain, get in touch with Export Finance Australia on 1800 093 724 or visit exportfinance.gov.au/diversify for more information.
For advice on how to reduce the cost, risk and time it takes to go international contact the team at ITIC on (08) 9365 7620 or via [email protected].