Australian exporters are feeling the impact of the strong dollar and natural disasters and havelower expectations for this year, according to the 2011 DHL Australian Export Barometer.
Currency and natural crises have impacted export levels with only 42 per cent of exportersreporting increased orders in the last 12 months against a predicted 69 per cent.
With order books down, sentiment has dipped across several key measures in DHL’s barometer.Profit expectations have been affected with just 41 per cent of exporters anticipating increasedprofits in the coming year compared to 59 per cent in 2010. Exporter confidence has significantlydecreased in comparison to 2010. For the first time in the survey’s history the number of companiesexpecting an increase in orders in the coming year has fallen below 50 per cent.
The annual survey of Australian exporters found that exchange rates are challenging 81 percent of exporters, affecting their ability to compete with overseas rivals (72 per cent), theprices they charge (70 per cent), sales revenue (69 per cent) and profit (68 per cent).
In addition to the strong dollar, natural disasters at home and overseas have causedsignificant economic disruption to 20 per cent of exporters. The Christchurch earthquake had thebiggest impact on export revenue (35 per cent) while the Japanese earthquake and tsunami have ledto reduced demand (32 per cent), a trend expected to continue in the coming year as the countryrebuilds.
Gary Edstein, Senior Vice President, DHL Express Oceania said the exporter community has hada difficult year but online commerce is presenting growth opportunities. “Half of the exporterssurveyed reported an increase in the levels of online commerce they have undertaken in the lastyear. Although competition has increased, ecommerce is making it easier for exporters to reach outto a wider market and will help many businesses react to opportunities in a timely and efficientway,” he said.
Tim Harcourt, Chief Economist for Austrade, said: “The high exchange rate is dampeningexporter confidence but the majority are pragmatic and flexible, expecting increased sales in theemerging markets of China, India and Latin America to keep them going.”
North America and South East Asia remain the top export destinations but China has replacedthe UK in the top five export destinations for the first time. China also has the highest growthexpectations of all countries (59 per cent of exporters expect orders to increase in the comingyear) and is expected to be the lead export nation by 2016.
