We stand at the start of an export boom driven by China demand. This is not commodity based but “know how” based, and all it requires is the coming together of all levels of Government, education and commerce. This boom is open to all including SME’s.
Hoiberg Business Group has just wrapped up our mid-year economic review of emerging trends within China, and it is apparent that Australia stands at the start of an export boom driven by the demands of the emerging middle class in China.
When the topic of exports is mentioned, the natural assumption is that one is discussing the “big-end of town” describing exporting of raw materials which involves massive infra-structure and is environmentally intrusive and a non-renewable resource. The assumption is the due to Australia’s low population, we will never be an exporter of manufactured goods. And will only be a resource-related support of the world economies rather than being a leader.
Australia may not be large scale manufacturer, but we are a nation of educators, farmers, inventors, innovators, design engineers, process engineers, and problem solvers. Within 8 hours of our borders, we have the largest emerging cashed-up middle class the world has ever seen, estimated at 500 million and rising.
We have the largest emerging cashed-up middle class the world has ever seen, estimated at 500 million and rising.
The Chinese middle class have a desire for (amongst other things):
- Education in English schools for their grade 11 and grade 12 students
- Training for their nurses and doctors to best practice in English schools
- Group tourism not to theme parks and glitter but eco tourist exposure
- Environmental protection and clean up technologies
- Increased food quality in existing stable diet strains such as rice
- Increased access to food variants such as avocado, green bean, etc.
- Australian wines
China’s impact of rapid industrialisation
China itself has issues with agrarian deterioration caused by rapid industrialisation and historic poor land management practices. This extends to poor process engineering in manufacturing plants caused by an over reliance on manpower rather than industrialisation and best practice. Among the need to systemise the urban delivery process which has deteriorated due to rapid conversion of agrarian population to an urbanised population without long-term planning.
China-Australia: opportunities for trade and investment
Opportunities exist for every business in Australia from SME’s to corporates to benefit from this situation. It is estimated that for every Australian school to host a student from China in Grade 11 and Grade 12, the economy will benefit by $100,000 per annum. This does not account for the follow-on tourism and construction, which will far exceed the estimated benefit.
For every tourist that visits Australia, it is estimated that the economy will benefit by a minimum of $10,000 per week. There is a huge untapped market there for the taking and it only requires a desire to succeed to create the greatest market opportunity that the world has ever seen.
A potential $3 billion boom to the Australian economy
HBG is an interested synergistic partner in this process. Under current arrangements with our Chinese partners, we have over 1,000 students ready and willing to start grade 11 and grade 12 in the 2015 Australian education year and over 1,000 nurses seeking positions in university or medical training hospitals. This converts to an economic boom within Australia of at least $200 million in 2014. At this rate our market penetration is only .00001% of the available market.
HBG seeks downstream education providers which will assist our aim of achieving a .0001% market penetration or a $2 billion boost per annum to the economy by 2016 and subsequent exponential growth.
HBG has had discussions with Australian Agribusiness providers who are prepared to support a market push into China to sell our expertise in farming one of the harshest and toughest rural areas in the world as well as our research position on improved and more resilient strains of crops and livestock. The expertise that we sell could provide upwards of $3 billion boost to the annual exports of the agribusiness sector of our economy, regardless of the economic impact upon the Australian economy caused by bushfire and drought and the de-stocking needs arising therefrom.
HBG is issuing a call to action for all SMEs within Australia to share our vision and action plan to maximise the opportunities that the growth in the Chinese middle class is presenting.
Your trusted business advisors Australia
HBG believes that Australia has the capacity to be the major exporter of the 21st century in a renewable resource that does not create environmental impact, but it will take the combined will of Australian governments, businesses and educational institutions to make this happen. For more information, please contact us today on (07) 5443 7600.
