According to a survey of 1,546 exporters by Global Sources, optimism is lower than it was in a similar survey conducted a year ago when nearly all respondents said they were certain of export growth. Compared with the second half of 2012 expectations, meanwhile, the outlook for 2013 is more positive as fewer companies foresee a drop in outbound revenue.
Just over half of respondents said they expect revenues from overseas shipments to be higher next year. Among these companies, 47% estimated 10-20% growth. Roughly one-fifth anticipate an increase of up to 10%, while 22% expect gains to be substantial at 21-30%.
Some 36% of surveyed companies are more conservative, pegging 2013 export revenue at 2012 levels as they contend with several issues hindering growth. The rest of the respondents anticipate earning less from international transactions next year.
“Many China suppliers are still dealing with higher production costs that have forced them to raise prices. This adds pressure to the already difficult export environment, with slowing business from the traditional markets of the EU and the US,” said Craig Pepples, Global Sources’ president of corporate affairs.
“Strategies such as market diversification and upgrading product design are helping reduce the downside. Thanks to this, the decrease in exports earnings for most manufacturers is less than some expected.”
For most companies, emerging markets are expected to continue playing a key role in supporting business in the next 12 months. Moreover 28% expect to boost production efficiency in 2013, while 27% said they plan to try lowering production costs to keep prices in check. A similar number of surveyed manufacturers said they may launch upscale products to justify higher quotes.
The poll results indicate China exporters plan to continue targeting the EU and the US in 2013, although orders remain slow. They intend to bank on a wider selection of upscale and basic products to reinvigorate demand there.
At the same time, companies may pursue business in alternative destinations. Foremost among their options is South America, followed by the Asia-Pacific region. Manufacturers also expect to strengthen their exporting presence in the rest of Europe.
Global Sources interviewed 1,546 China exporters from the electronics, telecom and computer products, fashion accessories, home products, gifts and premiums, garments and accessories, security products, baby and children’s products, solar and energy-saving. The survey was conducted for three weeks in October 2012.
