Regardless of the external and geopolitical conditions that develop across the globe, it is a general rule that national economies tend to thrive so long as they diversify. This remains the key to sustainable growth, even during times of reported volatility or uncertainty.
In many ways, the Australian economy represents the perfect embodiment of this trend. This independent and resource-rich economy recently grew at its fastest, annual pace in four years, for example, while also continuing a run of 25 years without experiencing a recession. With the value and export of various goods central to this growth, it is little wonder a nation of Australia’s natural diversity saw strong economic expansion in the region of one percent during the first financial quarter.
The diversity of Australia’s economy is now extending beyond the export of natural resources. While the nation will continue to mine and export valuable products, it is also emerging as an increasingly dominant player in the electronics market.
Led by firms such as Strong Australia, these companies have realised enormous productivity gains. According to a survey commissioned by the Sydney-based, electronics design software company Altium, more than 81 percent of companies within this market experienced improvements of up to six times or more, as they continue to benefit from increased investment, rising global demand and the benefits of share trading and positive market sentiment.
This bodes well for the future of the market and the Australian economy as a whole, particularly in a volatile and constantly changing global climate. After all, the news that a wide range of electronics companies are thriving not only boosts the amount of money being reinvested into the economy, but it also creates a more competitive marketplace that empowers Australian start-up ventures. Increasingly, new and evolving electronics companies are capitalising on gaps in a growing market, while laying down the gauntlet to the industry’s leading players in Europe, Japan and the US.
Long-term economic and geopolitical developments may also benefit the electronics markets in Australia, particularly if Britain acts upon its promise to trigger Article 50 and leave the EU. Australian Prime Minister Malcolm Turnbull has already asserted that he is keen on negotiating a lucrative and strong trade agreement with the UK, once the nation has officially left the Union and reclaimed its sovereignty.
This type of independent trade deal will not only strengthen the Commonwealth, but it will also help Australian firms to capitalise on the rising demand for electronics goods with optimised pricing and more favourable trading terms.
Both in the near and the longer-term, it is clear that Australia’s electronics market has an opportunity to grow and diversify the national economy. While the full extent of this growth and diversification will depend in part on sustained demand, Australia will benefit from a new and sizable stream of income.
There are two key elements to this, the first of which revolves around the fact that the future of consumerism and modern life will be electronic. This is an inescapable fact, and one that has not been lost on those at the helm of the nation’s major electronics firms or the investors who are looking to capitalise within this constantly evolving market. In this respect, the demand for interconnected and wireless devices is almost guaranteed to increase over time, with the only variable being the capacity of Australian companies to produce and export in a way that satisfies the aforementioned demand.
Beyond this, the growth of the electronics market in Australia is creating the kind of diversity that appeals to investors and politicians. For all of Australia’s wealth of natural resources, the demand for these goods remains variable while the current levels of supply cannot be guaranteed as the population growth. The growth of the electronics sector enables the country and its investors to expand beyond the resource and commodity market, increasing revenues, stability and long-term gains in the process.