newsflash march 2015
DESCRIPTION
News and updates on Swiss business in AustraliaTRANSCRIPT
NEWSFLASH MARCH 2015
CORPORATE PARTNERS
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Behind the scenes FROM THE GM’S DESK
Dear Reader,
On 15 January 2015, the Swiss National Bank (SNB) decided to discontinue the minimum exchange rate of CHF 1.20 per Euro which was introduced as a temporary measure in September 2011. The consequential strengthening of the Swiss franc was, no doubt, a shock for exporting Swiss companies, certainly SME’s. But is it all bad news for Switzerland? Not only…
By the end of the day of 15th January, the Swiss Franc rose by 15.7% against the AU$, 17.5% against the Euro and 15.8% against the US$. For an importer of Swiss products, this is a very substantial increase which, in the short term, can only be absorbed by decreasing your own margins and other “emergency measures” at home and abroad. Some of these measures include voluntary working more hours per week, staff lay-offs or reduction in hours worked or lower or no pay-outs of bonuses and other incentives.
From a neutral point of view, if you had the choice between a strong and a weak currency, which one would you choose? I almost suspect that most of you would choose a strong over a weak currency as a weak currency normally indicates some weaknesses in the economy (unless you artificially devalue your own currency, but that’s a topic for another day).
With the “unpegging” of the CHF, Swiss companies (and consumers) just got richer. Imports and investments abroad suddenly
got cheaper. However, Switzerland’s exports of goods and services are worth around 70% of GDP – and exporting more or even the same will be a challenge in the short-term. The question for me is whether Switzerland will be able to balance the positive with the negative effects of unpegging the Swiss Franc. In other words, can the savings on the import side be used to support the export side? (FYI, Switzerland imports more from the EU than it exports to the EU). Furthermore, I have no doubt that the SNB will continue to be active in supporting the Swiss economy within its limits. Some commentators believe that SNB’s target exchange rate to the Euro is somewhere around CHF 1.10.
With the exchange rate at its lowest since the GFC, the Australian market offers a great window of opportunity for Swiss companies for investments, mergers and acquisitions. I also believe that high end quality products as
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FROM THE GM’s DESK cont.
well as niche products (both of which Switzerland has plenty to offer) will continue to be successful in the Australian market but unlikely on the same high level as during the booming years.
Last but not least, the current environment offers an opportunity for Australians to improve their exports to Switzerland which have been traditionally rather modest. The Swiss certainly have the buying power, no doubt.
Yes, the current overvaluation of the CHF is a challenge. However, it may also be the opportunity for Swiss SME’s to seriously consider expanding to new markets outside their traditional target markets. Australia is one such market that has gone under the radar for far too long. Investing in Australia has just become even more attractive. Yes, Australia does have its own challenges, but let’s face it - it’s nothing, absolutely nothing, compared to the challenges faced by most countries near and far…In this sense, both Switzerland and Australia are comparatively well positioned to become even stronger business partners in the future!...Or is your glass half empty?
Until next time. Marcel Svatos
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LAST CHANCE TO NOMINATE FOR THE SWISS AWARD 2015!
Follow the footsteps of last year’s winner Hilti Australia and win the Swiss Award 2015. Nominate your company/organisation with a few simple steps online. Click on the following link or copy paste it to your browser to start: http://SwissCham.formstack.com/forms/SwissAwardNominationForm
TRADE 2014 SWITZERLAND - AUSTRALIA
IMPORT / EXPORT 2014
10 YEARS EXPORTS OF SELECTED SECTORS (CH TO AUS)
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Nature of goods Import Export
Value (CHF)
Value +/- %
Value (CHF) Value +/- %
Products of the chemical and pharmaceutical industry 34,143,737 -4.6 1,222,451,015 2.5
Precision instruments, clocks and watches and jewellery 54,203,879 -57.7 449,323,147 -1.6
Machines, appliances, electronics 11,313,922 -22.8 259,770,824 -9.9
Forestry and agricultural products, fisheries 83,894,628 3 172,259,027 -7.5
Vehicles 12,920,622 74.7 77,629,433 -16.7
Metals 2,711,310 53.5 64,758,382 -8.3
Leather, rubber, plastics 1,220,411 -50.8 17,629,938 -15.3
Textiles, clothing, shoes 2,313,206 -6.3 13,894,906 -10.6
Various goods such as music instruments, home furnishings, toys, sports equipment, etc.
1,163,486 28.3 9,811,504 25.1
Paper, articles of paper and and products of the printing industry 445,802 -38.5 4,488,803 -22.6
Stones and earth 952,478 43.2 3,541,014 -36.6
Energy source 14,279 ** 1,148,457 -4.7
Total trade 211,686,033 -25.8 2,320,373,280 -3.1
Prepared or processed food
0
40
80
120
160
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
millions CHF)
Medical instruments & equipment
0
50
100
150
200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
(millions CHF)
TRADE 2014 CONT. COMPARISON WITH KEY SWISS TRADING PARTNERS (OUTSIDE EUROPE)
10 YEARS EXPORTS OF SELECTED SECTORS (CH TO AUS)
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Country Import Export Balance
Value (mio CHF)
% of total trade
Value (mio CHF)
% of total trade
Value (mio CHF)
USA 10,906 6.1 25,877 12.4 14,972
China 12,155 6.8 8,821 4.2 -3,333
Hong Kong 1,775 1 6,978 3.3 5,203
Japan 3,046 1.7 6,191 3 3,145
Canada 628 0.4 3,293 1.6 2,665
UAE 541 0.3 3,025 1.5 2,484
Korea, Republic of 618 0.3 2,660 1.3 2,042
Saudi Arabia 137 0.1 2,323 1.1 2,186
Australia 205 0.1 2,296 1.1 2,091
Brazil 876 0.5 2,088 1 1,213
Turkey 1,321 0.7 1,974 0.9 653
Mexico 1,186 0.7 1,741 0.8 555
India 1,402 0.8 1,723 0.8 321
Qatar 149 0.1 699 0.3 550
South Africa 217 0.1 669 0.3 452
Oman 4 0 200 0.1 197
Total trade 178,350 100 208,336 100 29,986
Air- & spacecraft
0
45
90
135
180
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
(millions CHF)
Watches
0
50
100
150
200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
(millions CHF)
NEWS & UPDATES FROM THE NETWORK
OUTSMARTED - THE PERILS THAT GO WITH SMART CARS
Connected vehicles promise a world of advantages, from safety technology and route advice to toll payments and recovery of stolen vehicles.
But the more connected they are, the greater the risks they pose, warns a new report (link) by Advisen, prepared for Zurich Insurance.
Cars are rapidly becoming a rolling informa3on hub. Increasingly, an automobile is characterised by a sophis3cated network of computers linked to one another and to the Internet.
Some track and report on internal systems and vehicle usage. Others help govern such func3ons as steering and braking. Yet others are integral to on-‐board naviga3on, communica3on, informa3on and entertainment systems.
Vehicles soon will be equipped with func3onality to be in constant communica3on with surrounding vehicles and transporta3on infrastructure to improve safety. These enhancements include lane assist, automa3c braking, and other methods of preven3ng collisions. Other advancements in technology can also benefit, such as triggering first response in emergency situa3ons.
While computer technology and the internet are contribu3ng to a safer and more enjoyable driving experience, there are trade-‐offs and risks.
Electrical control units can improve vehicle performance and enhance diagnos3c capabili3es, but they have proved vulnerable to hackers.
Cars that enhance safety by electronically interac3ng with other vehicles and the driving environment generate privacy concerns. Who owns and uses the data that tracks driver behaviour and journeys?
Advanced infotainment systems provide a wide range of communica3on, informa3on and entertainment capabili3es, but also have many of the same security vulnerabiliAes as a smartphone or tablet.
Addi3onally, while automobile manufacturers claim that new infotainment technologies are much safer to use than the ways many drivers currently use smartphones and MP3 players, some safety advocates raise distracAon concerns.
Download the Advisen Report for more risk considera3ons around the privacy, security and safety of smart cars.
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As the go-‐to insurer for the transporta3on and logis3cs industry, Zurich takes a par3cular interest in promo3ng road safety and sponsoring research into the risks facing transport companies and fleet owners.
We will con3nue to offer risk insights as the vehicle technology landscape evolves at a fast pace, try to analyse and quan3fy risk and con3nue to develop crea3ve solu3ons in response.
Zurich is a founder member of the NRSPP (Na3onal Road Safety Partnership Program) (Link: www.nrspp.org.au). Watch the video on connected vehicles (link: hXps://www.youtube.com/watch?v=YxmLkqVrg4c#t%3D232) on their website (link: hXp://www.nrspp.org.au/News/Details/739).
For more ar3cles from Zurich, click here (hXp://zurich.com.au/content/zurich_au/business/business_news.html)
For more informa3on, contact: Barbara White-‐Jordan, Marke3ng Manager General Insurance, Zurich Australia, and Board Director SwissCham. Barbara on LinkedIn (hyperlink)
KUKA ROBOTICS ACQUIRES SWISSLOG
KUKA has taken over Swisslog -‐ a Switzerland-‐based producer of automaAon soluAons.
According to KUKA, the aim is to create a new, global supplier of integrated automa3on solu3ons for industries. The Swisslog brand will be preserved following the takeover which was completed in December 2014.
Swisslog provides material handling solu3ons for warehouses and distribu3on centres in Australia and New Zealand, for customers such as Coca-‐Cola Ama3l and Woolworths.
"KUKA Australia and Swisslog have worked together locally on projects for major companies in the past with a good deal of coopera3on, which is certain to become even stronger," KUKA Australia CEO, Greg Sale, told Manufacturers' Monthly.
"For local industries, the combina3on of the two companies will provide greater access to the latest and most efficient technologies and a strengthening of the service and support,” added Sale (pictured alongside).
KUKA Robo3cs Australia officially opened in Australia in May last year aoer opera3ng in the country for 15 years through agencies.
"The combina3on of Swisslog with Kuka creates poten3al for numerous industries including manufacturing and food where flexible automa3on of industrial processes is a long-‐term goal,"Shaun Roper, Swisslog Australia's Managing Director, told Manufacturers' Monthly.
"Swisslog’s exper3se in warehouse automa3on, in areas such as palle3sing and the picking of goods are some examples of the benefits Kuka customers may experience. Likewise, Swisslog customers will benefit from the opportunity to enhance and broaden our product and solu3on offering in areas such as advanced controls solu3ons and robo3cs," added Roper (pictured alongside).
"Together, as a new global supplier, we will be building on an exis3ng rela3onship to provide a seamless approach that customers will benefit from."
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SUCCESS STORY FROM THE NETWORK
REICHLE & DE MASSARI (R&M) No. 1: IKEA
��� Among the 12 stores that Ikea has in Australia, the upcoming store in Sydney is the country’s second largest, cover- ing 28 500 square meters, and is due to open in July 2015. The entire property will cover 76 000 square meters and will comprise the showroom, market hall, 450-seat restaurant, children’s play area and 850-vehicle parking lot. R&M – working with its partner JCB Communications won the opportunity to supply the latest Cat. 6A EL, alongside other products. “The new Cat. 6A EL was a breeze for our staff to install. The modularity and how seamlessly different R&M products integrate with each other was really great too. We’re happy to have completed the installation as per the tight project schedule (using R&M),” says Mathew Capon, Project Manager for JCB Communications.
No. 2: BUPA
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Bupa is a leading health insurance services company which caters to about 4.7 million people in Australia and New Zealand. For the headquarters in Sydney, which has about 1400 points across five floors, R&M supplied the new Cat. 6A EL UTP module along with U/UTP installation cables.
Bupa’s network, which has an inter- switch patching within the same cabi- net, required patch cords that needed to be custom-built and short at 0.2 m in length. This helped keep the space inside the cabinet tidy and accessible during maintenance.
Shayne Nee, Project Manager at Stowe: “The new module’s great. It’s got an intuitive design and we got around to in- stalling them a lot faster than any other ones out there. At Stowe, we really like using products that are consciously de- signed to be installer-friendly.”
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WELCOME NEW MEMBERS
NEVETT FORD Nevett Ford is a dynamic commercial law firm and member of Law Australasia, a coalition of 19 law firms with affiliated offices throughout Australia. Our client relationships are the heart of our business and our priority is to foster a collaborative approach to ensure the advice and services we provide are accurate and timely. Nevett Ford has offices in Melbourne and Sydney Australia and Beijing. Visit us at www.nfmelbournelawyers.com.au to learn more about our services or speak to our specialist legal teams.
SWISS WELLNESS PTY LTD Swisse Wellness Pty Ltd 36-38 Gipps Street, Collingwood VIC 3066 www.swisse.com
SWISS AUSTRALIAN ACADEMIC NETWORK www.saan.com.au
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®
EVENTS REVIEW
EUROMIX 1 25TH FEBRUARY @ UEBERBAR, MELBOURNE
The always popular informal networking over lunch with other European business communities. This time SwissCham was joined by the Finnish, Swedish, Irish, Dutch, Austrian and German chambers of commerce. 85 guests registered and we expect even more registrations next time when additional chambers will come on board.
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EVENTS DIARY NOTE
EUROMIX 1 11 MARCH @ SWISSOTEL SYDNEY
LAST CHANCE TO SECURE ONE OF THE LAST SPOTS!
AUSTRALIA DAY ROUND TABLE “Expanding your business to Australia” 22ND APRIL, ZUG, SWITZERLAND
SWISS AWARD 2015 & 30TH ANNIVERSARY OF SWISSCHAM CELEBRATION & AGM 21ST MAY, SYDNEY
SWISS AMBASSADOR CUP 2015 & 10TH ANNIVERSARY CELEBRATION 23RD NOVEMBER, ROAYAL MELBOURNE
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�12 ZU22454 - V1 09/14
This is a general description of insurance services and does not represent or alter any insurance policy. Such services are provided to qualified customers by affiliated companies of the Zurich Insurance Group Ltd, as in the US, Zurich American Insurance Company, 1400 American Lane, Schaumburg, IL 60196, in Canada, Zurich Insurance Company Ltd, 400 University Ave., Toronto, ON M5G 1S9, and outside the US and Canada, Zurich Insurance plc, Ballsbridge Park, Dublin 4, Ireland (and its EU branches), Zurich Insurance Company Ltd, Mythenquai 2, 8002 Zurich, Zurich Australian Insurance Limited, ABN 13 000 296 640, AFS Licence No232507, 5 Blue St., North Sydney, NSW 2060.
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