US targets high-tech growth in Africa

Africa is one of the growth markets targeted by US high-tech companies according to UPS’s annual “Change in the (Supply) Chain” survey. Despite global economic uncertainty, US hightech executives remain optimistic about the long term future of global trade and US exports due to rising demand for high tech products around the world. Conducted by IDC Manufacturing Insights and targeting US-based senior-level supply chain decision makers in the high-tech/electronics industry, the survey is designed to uncover top business and supply chain trends driving change in the high-tech/electronics industry. The 2012 survey focused specifically on exporting and was conducted from May-July 2012. Among executives who expressed optimism in the long-term growth of exports, nearly one in three attribute this to the steady increase in disposable income in emerging markets. Another third cite rising labour rates in traditional low-cost manufacturing countries as a primary factor, and approximately one in five cite legislative changes such as recent free trade agreements in Asia. A large majority, 8% of US high-tech executives, anticipate recent free trade agreements in Asia will increase their companies imports and exports to and from the region. Although North America is anticipated to remain the largest high-tech consumer market over the next three to five years, demand for high-tech products is expected to decrease by 7% in the region while demand in other markets is expected to increase, in some regions by doubledigit percentages. Specifically, executives report plans to increase sales/fulfilment in India, the Middle East and Africa by 22% each and in Brazil by 18%. “For high tech companies, demand changes quickly and rapid innovation is a necessity,” said Ken Rankin, hightech marketing director at UPS. “The winners will be those companies that successfully leverage the emerging market growth with strong products and execute import/export excellence.”