EFIC launches annual Global Readiness index

To better understand changing patterns in globalisation of Australian companies, Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, has launched its second annual Global Readiness index (GRi).

To better understand changing patterns in globalisation of Australian companies, Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, has launched its second annual Global Readiness index (GRi).

First launched in 2008, the survey examines key aspects of Australian companies’ overseas expansion plans and the accelerating pace of direct investment abroad, and seeks to discover whether these plans are changing in the light of the global financial crisis.

The GRi allows Australian exporters and offshore investors to compare their offshore investment models against others on a state and national level, and within their industry peer groups.

Questions are based on the drivers, risks and barriers to offshore expansion that companies face in an increasingly globalised and, at times, uncertain business world.

Last year’s GRi surveyed almost 500 Australian businesses across the country; the majority of these were SMEs.

The 2008 survey found that up to 73% of Australian exporters and offshore investors relied on retained earnings to finance their overseas expansion, only 35% used a debt facility from an Australian financial institution, and as little as 7% from a foreign institution.

The results of the 2009 survey are expected to provide Australian business with a comprehensive picture of the opportunities and challenges on the path to participating in today’s global supply chains.

It will also compare results with those from the 2008 survey, and is expected to show some interesting insights as a result of the changes to the global economic climate.

To encourage responses from a wide range of business across all exporting industries, EFIC is partnering with the State Chambers of Commerce and State Governments, as well as a number of leading industry and export bodies and bilateral business councils.

The results of the 2009 GRi survey will be published in April 2009, with the national results launched in conjunction with the Committee for Economic Development of Australia (CEDA) and the Australian Industry Group (Ai Group).

“A year can be a long time in business in today’s volatile international business environment. This year’s GRi results will provide insight into both the continuity and change of offshore investment by Australian businesses, and highlight the risks that they face when supplying their products and services overseas,” said EFIC Managing Director & CEO, Angus Armour.

To complete this year’s survey please visit www.efic.gov.au/gri/index. For information on the 2008 results please visit www.efic.gov.au/gri/2008