Two thirds of European technology companies already export to … – PT Journal

According to a UPS study, entrepreneurs in the technology industry expect a sharp growth in exports in the coming years

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Apart from China (66 percent), India (41 percent) and Brazil (31) are the preferred emerging markets business decision makers in Europe for export, according to the study ‘UPS Change in the (Supply) Chain ‘.

The results of the fifth edition of the study by UPS in partnership with IDC Manufacturing Insights, which interviewed 516 executives of the high tech industry worldwide also reveal that there is a strong commitment of European technology in 3D printing -. 66 percent already use this technology in their supply chains

The research also concludes that, although the off-shoring remain widely used in order to reduce costs by hand labor, a large number of companies in Europe already implements near-shoring strategies – 34 percent of respondents claim to have moved their assembly lines to closest local demand in the last year and 38 percent plan to add production units over the next two years

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Another point to note that 69 percent of European executives consider the near -shoring, strategy consisting of the relocation of production facilities and assembly lines to nearest locations of demand (where the products are consumed), an important solution for optimizing customer service.

“high-tech companies can now better respond to challenging market dynamics as they are to build shoring strategies and supply chains increasingly flexible” says Scott Aubuchon, Marketing Vice President of UPS Europe.

“The technology industry in Europe is adopting a holistic approach to evaluating transport costs and delivery time of the products,” he concludes.

The study ‘UPS Change in the (Supply) Chain’ also finds that 56 percent of European executives point to the right-shoring as an important element of its business strategy. The right-shoring focuses on the optimization of logistic processes by evaluating a number of factors – including cost, quality and time required for recovery of any operational failure – to determine the proximity of resources necessary for the production, storage and distribution .

The global growth outlook with regard to exports is high, even in Europe. According to the study of UPS, 39 percent of respondents estimate that exports will continue to grow at its current pace in the next two years. Already 19 percent admit that exports of high tech will have higher growth.

The companies in this sector have penetrated successfully in emerging markets. Next year, 35 percent of European high tech companies plan to enter the Brazilian market. Already India will be the target of 33 percent of Europe’s technological

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Although the entry into these markets register high values, barriers to expansion of companies sector continue to be felt.

For European decision-makers from industry, the establishment of initial operations in destination countries are the main challenge to expansion across borders (40 percent), followed by the cultural challenges (38) and the constant updating of regulatory requirements (34). Already globally, the main barrier involves the adaptation to different regulations in international markets.