An Australian minerals industry export advocate has renewed its call for sector players to be better prepared when offering their mining equipment, technology and services (METS) to the global market.
Earlier this year, the Australian Trade and Investment Commission (Austrade) updated a METS-related builder tool designed for Australian export companies.
While there were finances, regulations and competitors to consider, Austrade warned, the list of considerations for Australian exporters did not end there.
While there may be a lot of demand in the market, the commission said, it did not make the assignment effortless due to strong international competition, making a product’s point of difference even more crucial.
Furthermore, even if METS providers already had potential sales leads, it was still vital to conduct research in order to check that the products being offered would meet a real market need.
Moreover, it was useful to work out if there was a sustainable opportunity.
“Companies should conduct a risk assessment on markets they are planning to operate in,” Austrade’s global engagement manager, Jane Caforio, said.
“This would include understanding the risks for your people. “It is important to not only understand the legal and regulatory environment, but also what it means in practice when operating in the business environment in that jurisdiction.”
Pathways for METS providers include using an agent to represent their business and pitch to potential customers, finding buyers at events and tradeshows to make connections that could help them enter new markets and generate leads, as well as contacting peak industry bodies and commerce groups.
In addition, it was important that companies determine how and why their products or services were different from their competitors.
Having a unique selling proposition (USP), Austrade stressed, was essential when marketing METS products.
“They want to know how purchasing your product or service will benefit them,” the commission said.
“It also helps you to market and promote your offering to your customers.
“Each mine has its own specific challenges in mining and processing different commodities. It is critical to understand these. Show customers how your offering directly addresses their specific challenges.
“In terms of competitors, look for the gaps. Know who your competitors are in this space. How do you outperform them?”
Ultimately, Austrade suggested, METS providers should determine their ideal customer.
This means taking into consideration what the potential buyer actually wants, how the product or service on offer could solve their problem or fill a need, what influences their purchasing decisions and why existing customers “buy from you and not your competitors”.
“If you provide engineering services for the sector, you may not be able to compete on cost in certain markets,” Austrade said.
“These services are often more expensive from Australia. Instead, focus on what you do better than anyone else.
“Your USP should list the benefits of your product or service that your competitors don’t have.
“Costs and risks are high in the resources industry.
Customers and buyers want to feel comfortable and secure about any new supplier before signing contracts.
“They will want to know about solid proof on the value of your offering.
“Tell how you have made a measurable positive difference for clients before. Use detail and data wherever possible. Did you support your client’s objectives? How? Did you contribute to increased output or profits? By how much?”
Finally, when it comes to research, METS providers should look at issues pertaining to customer feedback, market testing and social media comments.
“You can also use positive feedback to develop your marketing or promotional material,” Austrade added.
“You can turn comments into a catchy phrase to highlight the key features of your product or service.”
Streamline Connect provides crucial services to the mining industry, including fibre installation, site civil works, network commissioning and integration. Because it delivers services in-house, Streamline Connect Director, Tony Farrell, highlighted that the business has a “real point of difference” when competing against tier-one contractors.
“As a small to medium-sized business, getting to the table can be challenging,” said Tony.
“We’re at the table now, but it has taken some years to get there, and when tendering on a large contract, being able to demonstrate competence is really important.”
Streamline Connect was introduced to Export Finance Australia by its bank, which recommended the government agency as a good mechanism to obtain security for contracts.
“Because we do so much work with Australian-based mining companies, which ultimately export, we qualified as part of an export supply chain for funding from Export Finance Australia, even though we’re not exporting or currently operating overseas,” explained Tony.
Major miners are very careful to assess all of the risks involved in appointing a contractor, so, for Streamline Connect, being able to demonstrate that it had the backing of Export Finance Australia has been crucial to winning major contracts.
Export Finance Australia provided Streamline Connect with the security (performance and warranty bonds) it needed to secure new contracts. This also helped free up cash flow to enable the business to cover the materials component and plant and equipment requirements for larger projects.
“The finance from Export Finance Australia was a big support. Protecting cash flow while mobilising larger projects was a significant risk and an area of uncertainty for us, and Export Finance Australia’s support helped materially,” Tony said.
With the financial support of Export Finance Australia, Streamline Connect is now securing increasingly larger contracts. This support has been vital for the business to seize new opportunities and grow quickly, a critical factor in the mining sector.
Export Finance Australia has a range of financial solutions that could support mining services providers as they look to scale their businesses.
Even if you do not directly export your goods or services, you may be eligible for support from Export Finance Australia if you are part of an export supply chain. That can mean providing products and services to a business that exports the end product or even subcontracting to support a mining project that does the same.
Some of the finance solutions that Export Finance Australia provides to the mining services industry include:
Bonds – These are often a prerequisite for large contracts and needed to meet the security requirements of larger mining contracts. Export Finance Australia can provide the bond directly to your buyer or support a bank-issued bond. Type of bonds include advance payment, performance, warranty and US surety bonds.
Guarantees – These are issued to your bank to enable your business to access additional finance. They can give you access to finance from your bank to deliver export-related transactions.
Export Contract Loans – These can support your cash flow, up-front mobilisation and material costs to meet your contract obligations for a specific contract.
Export Lines of Credit – These are flexible lines of credit solutions that can be redrawn and repaid multiple times during the loan availability period across one or multiple contacts.
Export Finance Australia works with banks, other government agencies and its partners to develop solutions to enable Australian businesses like yours to take on export-related opportunities.
