MEDIA RELEASE
11 September 2023
Half of all Australian businesses will look offshore for suppliers and customers as the cost of doing business grows
- Study finds 51% of businesses would source overseas suppliers and customers in the next 12 months.
- WA businesses are most likely to source from overseas (68%).
- Australian businesses are most interested in sourcing offshore technology such as software (38%) and IT hardware (31%).
More than half of Australian businesses (51%) would look to source more suppliers and customers overseas within the next 12 months, according to new research released by Money Transfer Comparison. As the cost of doing business in Australia increases, 85,686 businesses closed their doors permanently between March and June 2023[1]. The highly competitive and costly Australian market could force SMEs to seek resources or customers offshore for business success or survival.
The research comprised of a survey of 202 independent business owners and decision-makers across the full SME spectrum, commissioned by comparison service Money Transfer Comparison. The full survey results, including breakdowns across different business sizes and States, can be found here: https://moneytransfercomparison.com/australian-business-supplies-overseas/
More than half of all Australian businesses would seek overseas suppliers or customers.
With the rising operating costs business owners face, one-third have already reduced spending on non-essentials[2] and are making cost-saving adjustments for their businesses. Money Transfer Comparison’s research found that 51 per cent of businesses are willing to seek resources and customers or clients from overseas within the next 12 months as a response to the escalating costs of operating a business in Australia. One-third of the respondents (33%) indicated that they would choose an offshore supplier instead of a local one, and 18 per cent would seek customers or clients from overseas.
“There are a number of benefits to outsourcing, such as saving on labour and supplier costs, entering less competitive markets and increasing a business’s customer base,” says Money Transfer Comparison spokesperson Russell Gous.
Across the major states, West Australian businesses are the most likely to source overseas resources and customers or clients in the next 12 months at 68 per cent. Queensland businesses are the least likely to make the switch from local to international suppliers and customers or clients (60%).
Analysing the choices of different business sizes across the SME spectrum, 60 per cent of medium-sized businesses would look offshore. In comparison, only a quarter of micro-businesses (25%) would investigate overseas options.
Russell believes the new findings indicate that business owners are adapting to the rapidly changing financial climate in Australia: “Businesses are proactive in finding solutions to maintain their competitive edge and financial security. Outsourcing could be a short or long-term solution for businesses mitigating increasing costs, as well as to solve the skills shortage.”
Tech industry the most sought after for SMEs looking to outsource
The survey asked respondents which category Australian businesses would look at sourcing cheaper overseas products and services, with tech-related products and services being most likely, specifically software (38%) and IT hardware (31%). A significant proportion of businesses would also source manufacturing (30%), labour (29%), shipping and logistics (27%) and research (15%) offshore.
Russell concludes: “The data provides a comprehensive picture of how Australian SMEs will lean on offshore outsourcing to mitigate some local challenges. The significant trend points towards the need for outsourcing within the next 12 months, and the preference towards the tech industry reflects Australia’s shortage of skills in this area.”
The full survey results, including breakdowns across different business sizes and States, can be found here: https://moneytransfercomparison.com/australian-business-supplies-overseas/
ENDS
About Money Transfer Comparison
Money Transfer Comparison (moneytransfercomparison.com/Australia) is a global comparison website helping Australian businesses and individuals find the best rate in international money transfers to and from Australia. Money Transfer Comparison provides access to wholesale exchange rates across 14 money transfer companies, in a safe and secure way. Since 2014, tens of thousands of consumers and businesses worldwide have used Money Transfer Comparison to source international money transfers across more than 200 currencies. For more information, visit moneytransfercomparison.com/Australia
About Russell Gous
Russell Gous is a spokesperson for Money Transfer Comparison with vast experience in relationship management for brands such as WorldFirst and Barclays. With a keen eye for detail and a deep understanding of the payments industry, he aims to educate readers on the latest trends and payment solutions in the market. Leveraging his strong background in corporate banking, Russell plays a pivotal role in driving brand awareness and improving customer engagement.
Key Facts:
- Study finds 51% of businesses would source overseas suppliers and customers in the next 12 months.
- WA businesses are most likely to source from overseas (68%).
- Australian businesses are most interested in sourcing offshore technology such as software (38%) and IT hardware (31%).
Contact details:
Courtney Trewin | 0420 211 251 | [email protected]
Gillian Morgan | 0447 254 662 | [email protected]