Trump uncertainty causes economic concern downunder
Australia is far from immune from the fallout of President Trump’s emerging policies. For the Australian economy, there are a number of implications widely centred on international trade, the value of the Australian dollar and general economic confidence.
At the start of the Trump reign, former US ambassador Kim Beazley warned that a Trump presidency had the potential to destroy Australia's alliances and economic stability in the Asian region.
"It's not just what the Americans invest in us. Australians are putting their savings... billions of dollars into the United States and we are going to put billions more, so whoever is president of the United States better get it right,” Beazley said.
One of President Trump’s earliest policy decisions was the withdrawal from the Trans-Pacific Partnership (TPP), which erased the anticipated improved access for Australian firms to the US economy. It was not a complete shock as pre-election Trump described the TTP, which includes Australia and 11 other countries in the Asia–Pacific region, as a potential disaster for the US. The consequence of the end of the US involvement in TPP and President Trump’s hard line on trade means Australia’s focus must shift to Asia.
There is an alternative trade deal to the TPP, called the Regional Comprehensive Economic Partnership. This alliance aims to unite south–east Asian nations and their key trade partners, including Australia and New Zealand in addition to China and India. Still a work in progress, this trade pact could offer considerable long-term opportunities to Australia across the resource sector, agriculture and services.
Trump’s policy fallout could create opportunities for Australian wholesalers with an eye on China. Yet the full effects are yet to be seen.
Australian wholesalers have been advised that the best move going forward is to streamline operations. As there is so much uncertainty surrounding Trump and his policies, wholesale players in Australia need to continue to run their operations as efficiently and as cost effectively as possible so they can be nimble in dealing with change in the global trade environment.
A key help is implementing a proficient business management solution or ERP (Enterprise Resource Planning). As many Australian companies are now operating across borders, you have to have one system—rather than multiple systems that may not be connected or integrated, which creates fragmentation of information.
Leaping cross-border complications is not all a business management solution will do. It will also capture massive amounts of important information gained from customer orders. It will track and sort orders by product and by region, then analyse that data to enable companies to identify seasonal trends and patterns.
Armed with this valuable intelligence allows teams to make better, well-timed decisions to maximise sales and cut back on unnecessary costs. Investing in an online Master of Supply Chain and Logistics Management can help bolster your plan of attack in uncertain economic times. Learn more about our leading online program on the website or speak to one of our expert Student Enrolment Advisors today on 1300 701 171.
