Playing Offense in a Defensive Market.
In times of economic uncertainty, conventional wisdom often suggests battening down the hatches. But for Australian tech companies with existing US operations, the current environment presents a unique set of opportunities - if you know where to look.
Understanding the New Reality
As the NBR wryly noted "For all of its attempts at diversification, Australia is still a giant mine and the risks are heightened when the biggest customer (China) starts cutting demand as its own economy slows." The cut in demand is estimated to be $AU100b. Combine this slowdown with Trump's impending, tariff-threatening return and plummeting Australian currencies, requires a complete rethink of operational strategy.
The Counter-Intuitive Play
While many are retreating, here's why some operators are quietly expanding:
Your USD revenue is now worth more in AUD terms
US competitors are struggling with higher local costs
Market uncertainty is creating gaps in customer service
Strategic Imperatives
Cash Position Management
Eliminate non-essential US-based expenses (like underutilized office space)
Review all USD-denominated costs against Australian alternatives
Shift support roles to Australia where possible for immediate cost savings
Maintain US presence for client-facing functions where possible
Client Relationship Optimization
Direct engagement with top US clients about Trump-related concerns
Use these insights to drive product development priorities
Ask for contracts paid annual in advance
Smart Growth Execution
Leverage improved margins from USD pricing
Build out Australia-based support teams for US operations
Take advantage of competitors' staff reductions for talent acquisition
The Opportunity in Crisis
The convergence of these economic factors creates a rare window for well-positioned companies. While competitors retreat due to uncertainty, there's space for strategic expansion without the usual cost pressures.
Looking Forward
The key is balancing aggressive opportunity pursuit with prudent risk management. Companies that can maintain their US market presence while leveraging Australian cost advantages will emerge stronger when conditions stabilize.
Remember: In this environment, the biggest risk isn't taking action - it's standing still while the market transforms around you.
Success will come to those who can:
Keep their US presence lean but effective
Leverage currency advantages strategically
Stay close to client needs and concerns
Build scalable support infrastructure in ANZ
The path ahead is challenging, but as with many other things associated with the US it presents immense opportunity.
About Pacific Stride
Pacific Stride is a practical bridge to the US market. Filling the gap between government programs and full 'boots on the ground' we provide the strategic guidance, local expertise, and proven frameworks you need to successfully enter and thrive in the North American market. Pacific Stride's team of tech business leaders, with 30+ years experience across all three geographies, help Australian and New Zealand tech companies:
Get on-ground validation - assess regional fit, readiness, and risks before investing heavily in the US marketValidate or co-create go to market plans with a team on the ground.
Understand the market landscape and how best to distribute your product or service.
Power your USA expansion with full access to our sales and marketing support.