2024 Week 12 of 52 23% Export

Over the last four weeks I discussed some critical fundamentals to a flourishing city, including a vibrant lifestyle, buoyant economy, sustainable environment and fairness. This week I turn my focus to business growth, and what we have learnt about new market expansion and the role of market research since launching in 2004.

Australia is a small country with a high reliance on mining to ensure a luxurious trade surplus, yet independent analysis from?Harvard Growth Lab?illustrates we are slipping, unlike other comparative countries. We are reliant on our mining sector and comparatively underperforming on higher value complex export sectors.

Harvard Growth Lab has been tracking economic complexity, import / export and other data, across the world back to 1995. The Economic Complexity Index is a holistic measure of the productive capabilities of large economic systems, usually cities, regions, or countries.

From 1995 to 2021 the US moved from a ranking of 9th to 14th, and Australia moved from 55 to 93, China from 46 to 18, India from 60 to 42 and Japan remained in 1st position. According to the report ...

"Australia is less complex than expected for its income level. As a result, its economy is projected to grow slowly." (More >)

Australia's exportation of minerals and other mining is continuing to grow while other sectors are flat to sluggish. Australia’s enviable trade surplus (exporting more than we import) is predominately from mining – Iron Ore, Coal, Petroleum Gas, Gold and Aluminium, with leading export markets China, Japan, South Korea, India and the United Kingdom. Without mining we'd be in a huge deficit.

The comparative countries noted above all have a greater prominence of ‘value-added’ exports from cars to medicine. Whereas Australia often re-imports value-added, higher priced, of our own raw exports from steel to refined petroleum.

Australia exports 1995 to 2021, Atlas of Economic Complexity

Australia imports 1995 to 2021, Atlas of Economic Complexity

Australia export 2021, Atlas of Economic Complexity

It is interesting when comparing against other countries, less reliant on mining and low complexity exports, of the prominence of value added exports. Service exports are strong across the?US,?UK?and?India?to name three examples. In a country proud of our cleverness Australia is less successful at exporting clever, more so lucky.?

India exports 1995 to 2021, Atlas of Economic Complexity

India imports 1995 to 2021, Atlas of Economic Complexity

India export 2021, Atlas of Economic Complexity

Without Australia's mineral and mining exports we would, to coin a very Australian phrase, be 'up shit creek without a paddle' (NB: we actually imported this clever phrase from the US).?Australia should be a net exporter of higher economic complexity products and services. ?Hence the importance of technology, professional and other services. Doesn't seem too clever otherwise for such a wealthy country.

Why didn't we invest our golden soils better?

Over Square Holes' close to two decades we have worked with many value-added businesses to grow interstate and overseas into global markets, from Australia to Africa, Asia, North and South America, Europe, and Oceania. Including measuring the market potential, prioritising market entry, pricing and brand and product refinement. Optimising new market entry prior to ramping sales. Reach out if you would like to discuss how we may be able to help.

Business growth, inspired by real people

Have a great Friday, and weekend,

Jason

You want more?

Read week 337 of Think!

Read by clicking the below image or here>

Square Holes, Think! 337: Using market research to guide new market entry

Links ...

Also, as in 2023 I'll be attending Soup & Sleep to help make a difference to South Australians in need by raising money to put food on the table and ensure that no-one goes hungry.?please donate ...

Random thought to end this week ...

It is easy to feel in this seemingly increasingly complex world that "I'm OK so it's OK" or even to be in the zone of discontent, the space between expectations and reality. Human nature is to take the things that make us happy for granted.

We focus on the things we don’t have, and what we want, need and desire.

The perpetual loop of discontent.

“I want a better (house, job, car?… or whatever)” or

“I need more (money, time, fun?… or whatever).”

Back in 2015 I wrote the below about gratitude and research observing it's power.

"Findings of the research illustrate that gratefulness has a high correlation with??subjective well-being and increases happiness, decreases depression, reduces stress and generally increases satisfaction with life and social interaction.

Grateful people are less likely to blame others for their circumstances, and have better coping mechanisms. They sleep better, and have an improved optimism about life and the future.

Social good, donations, supporting others, generosity, helpfulness and volunteering are also higher amongst those with higher levels of gratefulness. People who are predisposed to gratitude, are eager to help others."

Thank you for reading.

If you're interested in meeting with me for whatever the relevant discussion jump on to my diary. My 2024 priority is spending more time meeting new people. Potential new clients, freelance researchers and other opportunities and collaborations. (I haven't opened my diary up before so fingers crossed)

Book a time