Australia and New Zealand

Despite its geographic position, Australia is well integrated into world markets. Its proximity to Asian markets that are driving fast-growing global demand serves as an export-promoting factor and also a challenge to keep up with innovation across all aspects of production and the supply chain. Australia’s strong mining and agricultural sectors create demand for industrial machinery, an area of strength for Wisconsin exports. In recent decades, Australian manufacturing of high-tech goods, electronics, industrial tools, equipment, and machinery have declined to levels where it is necessary to seek out overseas suppliers to meet local market demand. High labor and energy costs and geographical challenges motivate Australian companies to look abroad for new products and solutions in areas such as robotics, automation, remote monitoring, and predictive maintenance.

As the world’s 13th-largest economy, Australia’s competitive, open, vibrant, and flexible economy experienced 29 years of consecutive growth through 2020. After contracting by 2.1% in 2020, Australia has embarked on a strong economic recovery, with the International Monetary Fund predicting GDP growth of 1.5% in 2024, down from 2.1% in 2023. Australia’s resources are in high demand, particularly from fast-growing Asian economies, in turn creating great demand for mining and other related industrial equipment and technology services. Major capital-type goods like heavy earth moving equipment are typically imported and/or locally assembled by subsidiaries of foreign companies. 99% of tariffs have been eliminated on U.S.-manufactured goods entering Australia since the introduction of the U.S.-Australia Free Trade Agreement in 2005. The digital transformation brought about by the pandemic accelerated the use of cloud-based solutions across key industries such as health and education.

Australia is the seventh-largest export market globally for Wisconsin and the third-largest in the Asia-Pacific. Rich in natural resources, Australia has strong mining and agricultural sectors, which require industrial machinery. Australia is in a period of increased infrastructure spending (especially for railways, airports, roads, and waste management facilities), which is creating demand for capital equipment. Australia already imports around 70% of its mining equipment and about 95% of its agricultural equipment and machinery (including tractors). Major capital-type goods, including heavy earth moving equipment, are also typically imported and/or locally assembled by subsidiaries of foreign companies. Australia is strategically positioned close to Asian markets that are driving fast-growing global food demand, and the industry requires innovation across all processes in the production and the supply chain, presenting opportunities for Wisconsin agricultural and food production exporters of ingredients and food processing equipment and technology. Additionally, the Australian market for medical equipment and supplies provides good opportunities. The majority of medical technology products used in Australia are imported, with the U.S. being the leading import source. Wisconsin is already a leader in medical equipment exports, making this a lucrative opportunity for business growth.