Download as PDF, PPTX
Uploaded byScottish Enterprise
Doing Business in Australia 2014 - presentations
This document provides an overview of doing business in Australia, with a focus on opportunities in Queensland. It discusses Australia's strong economic performance and proximity to fast-growing Asian markets. Several case studies are presented on Scottish companies that have successfully expanded into the Australian market, highlighting both challenges and opportunities. The document also outlines various government initiatives and industry sectors with potential for further investment and trade between Scotland and Australia.
More Related Content
Similar to Doing Business in Australia 2014 - presentations
Doing Business in Australia 2014 - presentations
- 2. Doing Business inAustralia 28 July 2014 Follow Scottish Enterprise on Twitter @scotent Join the conversation using event hashtag #ScotHouse Connect with Scottish Enterprise on Linkedin and Facebook
- 3. Doing Business inAustralia 2014 Julian Taylor Executive Director - Asia PacificExecutive Director - Asia Pacific Scottish Development International Welcome & introduction
- 4. Australia – aneconomic powerhouse? • Relatively unaffected by global financial crisis • Uninterrupted growth over• Uninterrupted growth over past 20 years, averaging 3.5%. • Historical trade links with US and Europe but close proximity to fast growing Asian markets
- 5. Scotland and Australia •Scottish exports worth £400m • 90 Scottish companies with presence in Australiapresence in Australia • 50 investors in Scotland, employing 7,000 people • Strong historical and cultural links create opportunities in a number of key sectors
- 6. How SDI canhelp... • Up-to-date market information and specific opportunities • Access to industry networks;• Access to industry networks; GlobalScots; other scottish companies. • Practical advice business plan setting up overseas office
- 7. Doing Business inAustralia 2014 John Brown Head of International Trade FinanceHead of International Trade Finance National Australia Group Australia as a business opportunity
- 8. Doing Business inAustralia 2014 David Cross Operational Director Asia Pacific Global Energy GroupGlobal Energy Group Doing Business in Australia Cultural considerations Routes to market
- 9. Global Energy GroupAsia Pacific Pty Ltd. Global SCSGlobal SCS Doing Business In AustraliaDoing Business In Australia Presenter: David Cross, Operations Director - Global SCS Energy Projects Manager, Scottish Development International
- 10. Global Energy Group1 Global EnergyGroup Asia Pacific Pty Ltd. Group1
- 11. GLOBAL ENERGY SERVICES GLOBAL ENERGY SERVICES CPSCPSISLEBURNISLEBURN COMPANYSTRUCTURE Executive Management Team Executive Management Team Board of Directors GE (Holdings) Ltd. Board of Directors GE (Holdings) Ltd. EQUIPMENT MANUFACTURING, MAINTENANCE & QS MARINE PROJECTS LOGISTICS & MARINE OPERATIONS PROCESS PLANT GLOBAL PORT SERVICESGLOBAL PORT SERVICES Global Energy Group Asia Pacific Pty Ltd. ACCESS AND COATINGS ACCESS AND COATINGS RIGFITRIGFIT GLOBAL LOGISTICS GLOBAL LOGISTICS GLOBAL PROJECT SERVICES GLOBAL PROJECT SERVICES CUNNINGHAM CONSTRUCTION CUNNINGHAM CONSTRUCTION VERTECHVERTECH GLOBAL RESOURCESGLOBAL RESOURCES GLOBAL SCSGLOBAL SCS GLOBAL TCCGLOBAL TCC ROSS-SHIRE ENGINEERING ROSS-SHIRE ENGINEERING PRIME PUMPSPRIME PUMPS OGEOGE REELREEL GLOBAL DIVINGGLOBAL DIVING ONSHORE INDUSTRIAL SERVICES ONSHORE INDUSTRIAL SERVICES CALEDONIAN TOWAGECALEDONIAN TOWAGE NIGG ENERGY PARKNIGG ENERGY PARK
- 12. Group Performance Global EnergyGroup Asia Pacific Pty Ltd.
- 13. NETWORK OF EMPLOYEES INEUROPE AND OTHER GEOGRAPHIES Global Energy Group Asia Pacific Pty Ltd. OTHER GEOGRAPHIES Operations Management & Coordination Senior Management & Business Control Skilled Operatives, Technicians & Trades
- 14. REVENUE PERFORMANCE Global EnergyGroup Asia Pacific Pty Ltd.
- 15. Global Energy GroupAsia Pacific Pty Ltd. MITSUI
- 16. Doing Business In Australia2 GlobalEnergy Group Asia Pacific Pty Ltd. Australia2
- 17. Scotland & AustraliaConnections Scots played many key parts in the story of Australia For hundreds of years Scots have packed up their families and their belongings and sailed to Australia to start a new life. So how many Scots in Australia today? 1,792,600 by ancestry 130,204 by birth Global Energy Group Asia Pacific Pty Ltd. 8.9% of total Australian population/ 17% Have Scottish Family Connection Perth Australia Coat Of Arms Has Perth, Scotland's’ Coat Of Arms Within
- 18. Australia- Size DoesMatter Darwin Brisbane Global Energy Group Asia Pacific Pty Ltd. City From City To Driving Time Distance Flying Time Perth Darwin 45 Hours 4,164 kms 3.5 Hours Perth Sydney Melbourne Adelaide Darwin Brisbane 45 Hours 3,842 kms 3.5 Hours Brisbane Perth 56 Hours 5,218 kms 5.5 Hours
- 19. Australian Wildlife Global EnergyGroup Asia Pacific Pty Ltd.
- 20. Cultural Considerations Consider TerritoryBest Suited For Your Business, WA, NT, QLD, NSW, VIC, SA Different Territories Have Different Requirements Coffee Bar Culture- Business Done Over A Cappuccino Not The Best Idea To Turn Up At Meetings With Shirt & Tie Understand & Know Your Costs, including Super Annuation, Payroll Taxes and FBT !! Global Energy Group Asia Pacific Pty Ltd. Taxes and FBT !! Understand The Australian Industrial Relations Laws (IR)
- 21. Cost Of LivingComparison Description Glasgow Perth Difference % Imported Beer (0.33 litre bottle) £3.00 £4.99 +66.18% Milk (regular), (1 litre) £0.90 £0.92 +1.95% Loaf Of Bread £1.05 £1.76 +67.69% Petrol Per Litre £1.34 £0.84 -37.78 Global Energy Group Asia Pacific Pty Ltd. Rent 3 Bed Apartment Per Month £985.71 £2047.56 +107.72% Buy Apartment Per m2 £1,887.50 £4,545.60 +140.83 Average From 50 Items +47.32% Reference www.numbeo.com
- 22. • Typically UKSalary Multiplied By 1.5 Minimum For UK Expats • Superannuation - 9.50% (WA, Varies Across States) • Payroll Tax – 5.5% ($850k Threshold) • Fringe Benefit Tax – 49% (Average) • Private Healthcare (FBT) • Company Car & Accommodation (FBT) Cost Of Living Comparison Global Energy Group Asia Pacific Pty Ltd. • Company Car & Accommodation (FBT) Good News………..Your Services Will Probably Be Charged At Double UK Rates
- 23. Australian Projects Global EnergyGroup Asia Pacific Pty Ltd. Conventional Gas Resources Coal Seam Gas Resources Past Production Gas Basin
- 24. Conclusion 3 Global Energy GroupAsia Pacific Pty Ltd. 3
- 25. Conclusion • Plenty OfOpportunities Still Available • Projects “On Hold” Still To Come On Line, Therefore Still Considerable Investments To Be Realised • Mining Sector Should Be Considered As A Possible Additional Sector • Opening An Office In Australia Can Seem Daunting Due To Global Energy Group Asia Pacific Pty Ltd. • Opening An Office In Australia Can Seem Daunting Due To Costs, However Remember You Can Generally Charge More For Your Products Or Services • Look At Australian Websites Such As ProjectConnect & ICN Gateway For Details On Projects
- 26. Global Energy GroupAsia Pacific Pty Ltd. . . .working together for success
- 27. Doing Business inAustralia 2014 Case studies panel session Real life stories & experiences shared
- 28. Doing Business inAustralia 2014 Steven King DirectorDirector Emtelle Case study 1
- 29. The Emtelle GroupTheEmtelle Group
- 30. Emtelle’s Vision • Wewill create value and make a difference everywhere we engage with customers by listening, understanding, innovating and adapting.
- 31. Introduction to Emtelle •Emtelle been supplying telecommunications markets in the UK continuously since 1980 and international markets since 1996 – Headquartered in UK • Manufacturing facilities in Jedburgh and Hawick – Acquired majority share in Dantex in May 2007.– Acquired majority share in Dantex in May 2007. • Manufacturing facility in Sonder Felding, Denmark – Acquired majority share in Parixit Industries in October 2010 • Manufacturing facilities in Ahmadabad – Exports to 64 countries – Group Financial for 2013 – Sales in Europe of €101.3m, EBITDA of €13.5m, 300 FTE – Sales in India of €22.5m and EBITDA of €0.0m, 700 FTE
- 32. Emtelle’s Business Segmentsin Australia • Distributed Temperature Sensing for HV Networks – Electricity Australia – Value Added Partners Jubatus, Taihan, LS Cable • Intelligent Transport Systems – Road Tolling – Bus Ways– Bus Ways – Airports • Specialist Military – RAAF Bases – Royal Australian Navy • Campus and Major Buildings – Theme Parks – Hospitals, Prisons and Other Major Buildings
- 33. Emtelle in Australia •Started exporting in 2000 using an Indirect Distributor Model – Geographical Coverage for Customers – Lead Time – Customs Clearance– Customs Clearance • Established Emtelle Australia Pty in 2002 to allow Direct Sales Model for Specific Customers – Local Employees and Direct Sales activities created Taxable presence in Australia – “Local” sale – Customs clearance – GST recovery
- 34. Challenges to Overcome •Protectionist Policies for Next Generation Broadband – Buy Australian – Domestic competition, conventional technologies • Building Sales with Indirect Partners – Our products are complex making it difficult to train competent– Our products are complex making it difficult to train competent sales people in Indirect Channels – Labour retention is a major issue for skills and competence in Indirect Channels – Unwilling to commit to expensive stock • Project Sales in Niche Markets – To operate within our Lead Time/Logistics constraints
- 35. Doing Business inAustralia 2014 Iain Weir Director of MarketingDirector of Marketing Ian Macleod Distillers Case study 2
- 36.
- 37. STILL SCOTTISH -STILL INDEPENDENT Ian Macleod Distillers is a Scottish, independent, family-owned company established in 1933 – third generation Leonard Russell is the current Managing Director. In a marketplace increasingly dominated by a few multi-national IAN MACLEOD DISTILLERS LTD. GLENGOYNE.COM In a marketplace increasingly dominated by a few multi-national PLCs, our focus is on the traditional family values of premium quality, value and customer service. With the acquisition of Glengoyne Distillery (glengoyne.com) in April 2003, Ian Macleod became a fully integrated distiller, blender and bottler. In 2011 we also acquired Tamdhu Distillery on Speyside.
- 38. GLENGOYNE DISTILLERY UNHURRIED SINCE1833 TRADITION, PRESERVED
- 39. STILL SCOTTISH -STILL INDEPENDENT The company has combined sales of well over one million cases, with over 80% being exported to more than 50 markets worldwide. IAN MACLEOD DISTILLERS LTD. GLENGOYNE.COM We are the 10th biggest Major Scotch Whisky group in the world based on market share percentages (SWR 2013). Ian Macleod produces a range of blended and malt whiskies, as well as rum, gin and vodka.
- 40. SCOTCH WHISKY –STUNNING GROWTH • Exports generated £4.3 billion (value) for the UK balance of trade in 2013. In (volume) terms, the equivalent of 1.3 billion bottles. • 25% of all UK food and drink exports • Over 140 million cases exported to over 200 GLENGOYNE.COM • Over 140 million cases exported to over 200 countries. • Exports earned £135 every second to the UK trade balance. • At home £1 billion contributed to the Exchequer in taxes.
- 41. SCOTCH WHISKY –STUNNING GROWTH • Demand for single malt continues to grow globally, with exports rising by 5% in 2013 to reach a record £820 million, nearly a fifth of Scotch exports by value. • Over 35,000 jobs across the UK are supported by the GLENGOYNE.COM • Over 35,000 jobs across the UK are supported by the industry. • 20 million casks lie maturing in warehouses in Scotland. • £1bn invested annually across the industry’s supply chain. • Scotch Whisky continues to attract younger, affluent consumers in newly emerging markets.
- 42. HOW WE STARTEDTO EXPORT/DO BUSINESS IN AUSTRALIA • We have been trading with Australia for over 20 years. • Originally with a local retailer (since purchased by a competitor) selling competitively priced own label GLENGOYNE.COM competitor) selling competitively priced own label brands not single malts. • Of the top 20 Global importing single malt markets (SWA 2014), Australia is now #12 (volume) and #14 (value).
- 43. HOW WE STARTEDTO EXPORT/DO BUSINESS IN AUSTRALIA • The Australian single malt market has increased by over 34% (volume) and 36% (value) in the last 12 months. GLENGOYNE.COM • 4 years ago we met our current distributor via Hong Kong Vinexpo exhibition. Forecasting the above premiumisation trends, they wanted to increase their malts range – The Six Isles, Smokehead and 14 months ago our full Glengoyne Highland Single Malt range were added.
- 44.
- 45. ASSISTANCE AND SUPPORTFROM SDI ETC. • Whisky tastings with SDI in Sydney. • Global funding/advice. • Scotch Whisky Association (SWA). GLENGOYNE.COM • Scotch Whisky Association (SWA). • Visit Scotland Events. • Glasgow Marketing Board. • Commonwealth Games media.
- 46. GENERAL TOP TIPSAND CONSIDERATIONS FROM OUR EXPERIENCES • Legislation – import/local mandatory labelling . • Seasonality – temperatures, Father’s Day, Christmas. • Associate with a proud Australian culture. GLENGOYNE.COM • Associate with a proud Australian culture. • Food and wine appreciation - ‘Foodies’. • Research/localise e.g. ingredients. • Find that USP/link – e.g. Glenguin.
- 47. KEY ADVICE YOUWISH YOU HAD BEEN TOLD IN ADVANCE • Size of the country and the distances between major cities e.g. Sydney and Perth. • Major cities are mainly coastal. GLENGOYNE.COM • Major cities are mainly coastal. • Distribution/logistics. • Personal in-country Travel. • Expense.
- 48. THANK YOU. GLENGOYNE.COM THANK YOU. AnyQuestions?
- 49. Doing Business inAustralia 2014 Coffee breakCoffee break 10 minutes
- 50. Doing Business inAustralia 2014 David Crook Senior Trade and Investment CommissionerSenior Trade and Investment Commissioner Australian High Commission, London Government initiatives & market opportunities
- 51.
- 52. Slide 51 A1 changevisual to new cover? Author, 07/01/2014
- 53. An economy ofscale Australia – open for business
- 54. Key contributor tofuture global growth sectors Australia – open for business
- 55. Innovation credentials Australia –means opportunities
- 56. Australia is oneof the fastest growing R&D spending economies Australia – means opportunities
- 57. Australian universities rankedamong world’s best Australia – open for business
- 58. “With the Asia-Pacificregion at the centre of global growth, Australia is in a unique position as a safe and reliable location from which to service that market”market” John Corcoran, Executive Chairman, Global Switch Location Australia is connected through geographic proximity, trade, investment and cultural links with the fast-growing Asia-Pacific region.
- 59. Location Australia – openfor business
- 60. Asian demand drivesAustralia’s trade growth Australia – open for business
- 61. An attractive destinationfor FDI Australia – open for business
- 62. Traditional markets stillstrongest, and investment from Asia is increasing Australia – means opportunities
- 63. Want to learnmore? www.austrade.gov.au/invest Austrade – for Investment Assistance david.crook@austrade.gov.au www.austrade.gov.au/investment SDI – for Export Assistance www.scottish-enterprise.com/international Call and talk to an export advisor
- 64. Doing Business inAustralia 2014 Ken Smith Trade Commissioner for Europe and Agent General for UKGeneral for UK Trade & Investment Queensland Opportunities in Queensland Australia, including the Gold Coast 2018
- 65. • Population –4.66 million • Land – 1.73 million km2 ( 7 x size of UK ) • GSP – AU$295 billion (US$303 billion) • Capital City – Brisbane (population, 2.19 million) • Coastline – 6,973 kilometres • Time Zone – GMT + 10:00 • Currency – Australian Dollar (AUD) Queensland - Overview Queensland Overview
- 66. Why Queensland ? •Located on Asia-Pacific’s doorstep, businesses in Queensland are well placed to do business with Asia and the world. • Queensland is forging ahead with new plans and initiatives to continue to strengthen the State’s economy. Why Queensland? • The Queensland Government has embarked on a programme of capital projects to upgrade and build new roads, railroads and telecommunications networks. • This, together with the most competitive payroll tax regime in the country, makes Queensland an ideal place to do business.
- 67. Gateway to theAsia Pacific
- 69.
- 74.
- 75. • Australia currentlyhas over $200bn worth of LNG projects committed or under construction, and Queensland accounts for about 30% of these • Australia is ranked 7th in the world - with respect to technically recoverable shale gas resources (437 tcf, or about 65% of the US reserves) • Queensland is a significant player in the Oil and Gas industry with 3 projects under construction – more in the pipeline > $60 billion committed (over the three projects under construction) Queensland’s CSG-LNG Sector Source: Access Economics Investment Monitor ; IBIS World, Mining 2012
- 76. Current QLD CSG– LNG Projects Sources: Project websites and media releases *Estimations only and subject to change
- 77. Upstream activities: Drilling: anestimated 350-500 new wells per annum will be required to supply a single two train project. This intensive drilling presents opportunities for drill rig manufacturers and service companies to set up in Queensland. Gas processing and gas/water gathering networks: The number of wells completed each year per project will have an ongoing requirement for associated equipment and materials which could be fabricated in LNG Supply Chain Opportunities equipment and materials which could be fabricated in Queensland. Midstream activities: Queensland’s CSG/LNG industry will require up to four underground high pressure gas transmission pipelines, each up to 500km in length linking the gas fields to Gladstone. Downstream activities: The first stage development of the proposed projects will see six LNG trains established by 2014-2016.
- 78. Opportunities – Foodand Agribusiness The Queensland Government is committed to the growth of existing traditional sectors such as sugar, beef and grain production, as well as new emerging sectors within the food industry. • Meat processing as the largest beef-producing state in Australia, Queensland has sophisticated industry-related infrastructure and support services in place. The Queensland Government has committed $32m into the beef industry to fund new and improved bio-security and a network of world-class beef research facilities.bio-security and a network of world-class beef research facilities. • Functional foods Queensland’s biodiversity, wide range of climates, and variety of horticultural types, supports the production of a wide range of food. The State’s reputation for delivering clean, safe and high quality food products combined with an increasing global demand for health-conscious products presents a unique opportunity for companies interested in functional foods.
- 79. • A leadingAviation, Aerospace & Defence hub in Asia Pacific, with a range of opportunities • Queensland is the second-largest state for defence employment, home to a quarter of Australian Defence Force (ADF) military personnel and a 26 per cent share of national defence industry activity. • Government has launched new Defence Industries Queensland unit and appointed a defence envoy to grow the local defence sector and attract more Aviation, Aerospace and Defence appointed a defence envoy to grow the local defence sector and attract more investment to Queensland. The unit will be a focal point for development of the sector in the state with a long-term commitment to advancing Queensland’s defence industries • Design, manufacture, MRO, component manufacture and assembly, avionics, training, professional services, R&D, UAVs, Scramjet technology, advanced composites, rotary wing, general aviation
- 80. • Queensland Governmentcommitted to the development of the life sciences industry (including therapeutic medicines and devices) • Excellent R + D climate with A$ 3.8 bn spent on science infrastructure in the last decade. • 66 biotech-related research institutes employing approx 6,170 researchers generating revenue of more than A$1 billion per annum Biotech and Health generating revenue of more than A$1 billion per annum • More than 20 drugs are in clinical trials. • Global successes: Gardasil, Vaxxas, Coridon, Peplin • Opportunities in complementary medicines and nutriceuticals
- 81. Queensland’s Gold Coastwill host in 2018, following Glasgow in 2014 2018 Commonwealth Games
- 82. Economic benefit forthe Gold Coast is estimated at $2 billion • There will be in excess of $500 million spent on sport and transport infrastructure fast tracking existing initiatives • Estimated 30,000 full time equivalent jobs in the tourism, construction and events industries building • The 2018 Commonwealth Games Athlete’s Village will be constructed at Gold Coast Parklands, Southport Commonwealth Games Infrastructure at Gold Coast Parklands, Southport • Redevelopment of Parklands will commence late 2013 • Construction of the Athlete’s Village will be completed late 2017 ready to house 6,500 athletes and Games Officials for the April 2018 Commonwealth Games • The Athlete’s Village will be a key legacy component of the Gold Coast Health and Knowledge Precinct
- 83. Procurement Building Construction and Maintenance GeneralGoods and Services Information andInformation and Communications Technology Medical Road Construction and Maintenance
- 84. For further informationon opportunities… Queensland Government: •Trade and Investment Queensland - www.export.qld.gov.au •Department of State Development, Infrastructure and Planning - www.dsdip.qld.gov.au •Projects Queensland - http://www.treasury.qld.gov.au/projects-queensland/ Queensland Resources •Projects Queensland - http://www.treasury.qld.gov.au/projects-queensland/ •Department of Transport and Main Roads - www.tmr.qld.gov.au •Department of Natural Resources and Mines - www.dnrm.qld.gov.au •Queensland Treasury and Trade - www.treasury.qld.gov.au •Department of Tourism, Major Events, Small Business and the Commonwealth Games – www.dtesb.qld.gov.au
- 85. Resources: • ICN ProjectGateway • http://energy.icn.org.au/ • http://rail.icn.org.au/ • http://mining.icn.org.au/ CSG to LNG: • QGC - http://www.qgc.com.au/becoming-a-supplier.aspx • GLNG - http://www.glng.com.au/Content.aspx?p=130 Accessing Opportunities • GLNG - http://www.glng.com.au/Content.aspx?p=130 • APLNG - http://www.aplng.com.au/working-us/suppliers-and-contractors • Arrow Energy - http://www.arrowenergy.com.au/page/Contact_Us/Suppliers/ • Fishermans Landing LNG - http://www.lnglimited.com.au/irm/content/project_australia.html • Bechtel - https://supplier.bechtel.com/ Gold Coast 2018 Commonwealth Games • Forward Procurement Plan- http://www.business.qld.gov.au/commonwealth- games/get-involved-games
- 86. Ken Smith Trade &Investment Commissioner - Europe T: +44 (0)207 4208 761 E: ken.smith@tiq.qld.gov.au Kael O’Sullivan Business Development Manager - Europe T: +44 (0)207 4208 777 Contact Us T: +44 (0)207 4208 777 E: kael.osullivan@trade.qld.gov.au Disclaimer All figures are quoted in Australian Dollars, unless otherwise specified. This publication has been prepared by the State of Queensland as an information only source. The State of Queensland makes no statements, representations or warranties about the accuracy or completeness of, and you and all other persons should not rely on, any information contained in this publication. Any reference to any specific organisation, product or service does not constitute or imply its endorsement or recommendation by the State of Queensland. The State of Queensland disclaims all responsibility and all liability (including without limitation, liability in negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way, and for any reason.
- 87. Doing Business inAustralia 2014 Q&A panel session Panellists: Name Organisation Julian Taylor SDI John Brown National Australia Group David Cross Global Energy Group Steven King Emtelle Iain Weir Ian Macleod Distillers Name Organisation David Crook Australian Trade Comm. Ken Smith Trade & Investm. Qld Stuart Russell Gov. Of Western Australia Jenna Donaldson Qatar Airways Euan Duncan MacRoberts LLP
- 88. Doing Business inAustralia 2014 End of event THANK YOU!
- 89. Doing Business inAustralia 2014 www.scottish-enterprise.com/international Talk to an export adviser 0800 019 1953