Resilient Aussies drive growth

The 2009/10 year was another hard year for many in the Australian Marine Export sector.  It has been sad to see the effects of the GFC really impacting boat builders who, as well as the dramatic slowdown in export sales, have faced increasing competition from cheaper imported product coupled with the high cost of manufacturing in Australia. Whilst we hear governments talking all the time about the importance of manufacturing here and the benefits to the Australian economy, the industry has seen very little or no assistance for the marine sector. More and more manufacturers are looking at doing some if not all of their manufacturing off shore and this looks set to continue.  This is a sad day for Australia as we see jobs lost and IP move overseas.  

However having said this, AIMEX and many marine industry manufacturers and service providers are certainly still making their mark in the global arena. Australia has been one of the few countries who has continued to promote itself internationally with a continued significant presence at key boat shows. In the past 12 months AIMEX has organised the Australian Pavilion at five international shows being Dubai, Shanghai, Korea, IBEX and METS. All the shows have been extremely successful for those who have exhibited and kept up their drive seeking export sales.

As a country we have been envied by many with Australia being the only country pavilion at IBEX, and along with Italy the only country pavilion at Shanghai and Korea, in Dubai the only other country pavilions were Turkey and Italy. Not a bad outcome for a country so far away and battling the same economic climate as every other country.

The following comments, from the 2010 Australian Marine Export Awards judges typifies the focus and resilience of the marine sector. Peter Ironmonger a senior advisor for Austrade who spent several years in Shanghai, and was recently involved with international delegations brought by Austrade to SCIBS said: “I am impressed by the ingenuity displayed by many of the exporters to maintain or even expand their export business in the difficult times being faced by the marine sector. Several of them have adopted creative strategies to identify and pursue new geographic markets, find new applications for their products in non-marine sectors, or different market niches to balance the
decline in traditional markets.”

John Savage – well known with in the marine sector said: “It is gratifying to see that many manufacturers have actually gone to the trouble of identifying their strengths and weaknesses in their fields and have taken the time to develop marketing strategies that address this and in many cases have already received rewards for their efforts.”  

Ian Murray executive director Australian Institute of Export commented: “Despite an extremely difficult economic environment and a strong dollar, exporters in Australia’s marine industry remain aggressive, confident and above all committed to continue to build their presence on the international stage. In entry after entry in the recent awards judging it  was encouraging to read the words ‘while our international competitors are cutting back their marketing we are continuing to invest in promotion.’”

Many too have retained staff numbers and in some cases increased their workforce. What also stands out is the diversity in the sector, the level of international best practice and the degree of innovation much of which is driven by an increasing use of technology.  

With the pressures on manufacturers to grow their market to survive a move to expand export sales is being forced upon many Australian businesses. Many are now looking to the emerging markets of South East Asia particularly now that there is free trade agreements with many of these countries (see next page). Recently at the Sanctuary Cove Boat Show a presentation was given to AIMEX members detailing the various markets in South East Asia. Following is an overview of the marine sector in these countries.

 
THAILAND

• Both commercial and recreational marine sectors;

• Phuket is recognised as capital of leisure marine industry of Asia;

• Around 2,000 residential and 300-400 visiting yachts and super yachts and growing;

• Nearly 1,000 marina berths including 700 berths in Phuket;

• All marinas have development and expansion projects;

• Growing commercial ship building and repair industry, worth over AUD 350 million a year.

 
THE PHILIPPINES

• Heavily reliant on the marine sector as archipelago of 7,107 islands;

• Emphasis on commercial marine sector, a number of large scale ship builders;  

• Recreational marine sector is small but expanding in line with the growth in tourism industry.

 
VIETNAM

• Strong commercial ship building and repair industry, becoming a key export sector;

• World’s 11th largest ship building and repair industry, attain US$ 1 billion revenue;

• More than 60 commercial shipyards including 20 state-owned shipyards, approximately 50 smaller shipyards;  

• An emerging market for recreational marine sector in line with tourism industry development.

 
MALAYSIA

• Small marine industry but growing, especially recreational marine sector;  

• Four major marinas in Sabah and Sarawak, and many small berthing facilities;   

• Around 20 boating associations and clubs.   

 
SINGAPORE

• Highly related to commercial vessel sector;

• World’s largest container port;

• Centre of international maritime;

• Developed infrastructures for recreation marine;

• Hosting high-profile boating events such as “Clipper-Round-the-World” race and Dame Ellen MacArthur’s Asian Tour;     

• Local population of recreation boats is around 3,500 and increasing.

 
INDONESIA

• High demand of offshore, oil and gas vessels and services;

• Comprehensive networks of fast ferries throughout the Indonesian archipelago;

• Growing demand of recreational marine services along spectacular dive spots and resort islands such as Natuna, Derawan, Raja Empat, Bunaken and Bali Islands;  

• Marine tourism industry development is highly promoted by the Indonesian government.  

 
Businesses looking at exporting to this region should be aware of the free trade agreement that has been negotiated with this region.