Country Focus: Israel
Israel Offers Sales and Production Opportunities
A high-tech powerhouse with a fast-growing, highly educated population, Israel is an intriguing opportunity for companies looking to expand their markets or locate new operations.
For those unfamiliar with this advanced, developed nation apart from the latest news headlines, Israel's standing in the global economy is likely to surprise. The country boasts the most startup companies and NASDAQ-listed firms outside North America, which has earned it the reputation of a second Silicon Valley. In addition to growing its own firms, Israel has attracted R&D operations and investments from Apple, Google, IBM, Intel, Microsoft and many others in recent decades.
Growth and achievement
Such entrepreneurship has been fueled in part by the nation's characteristic emphasis on educational attainment. Only Canada, Japan and Russia have a higher percentage of college graduates. And when coupled with strong economic and population growth -- the nation's size has increased tenfold since its formation in 1948 -- perhaps it's no surprise after all that Israel has been getting noticed as a great place to do business.
Thanks to its commitment to democracy and the free market, Israel was admitted to the 34-member Organisation for Economic Co-operation and Development in 2010. The World Bank's 2014 Ease of Doing Business report ranks Israel in the top quartile of countries, and rates the nation 6th in protecting investors, 10th in trading across borders, and 13th in getting credit.
With an impressive 3.3 percent economic growth rate in 2013, Israel is now a top-30 country in terms of per capita GDP, and was largely unscathed by the global and regional economic downturns of recent years. In the past decade, annual growth averaged about 5 percent, mostly thanks to high-tech exports, but is expected to moderate over the next ten years to about 3 percent annually.
Challenges and opportunities
Supporting the country's economic growth is its population growth, which increased 2 percent in 2013 to about 8 million people, far outpacing most of the developed world's growth rate, and even that of developing nations such as Brazil, China and India.
While growth and diversity have contributed to economic dynamism, they continue to spark conflict as well. (Israel is about 75 percent Jewish, 21 percent Muslim, and 4 percent Christian.) In addition to chronic tensions and occasional outbreaks of violence, concerns are increasing about low labor participation among fast-growing minority segments; rising income inequality and consumer prices; and environmental degradation.
Nevertheless, Israel overall is a safe, upbeat place to do business, and has turned its technology leadership toward the development of clean energy and renewable resources. UTi has been proud to support the success of clients here in the high-tech and energy sectors, as well as the automotive, chemical, and consumer and retail industries, among others.
Your partner on the ground
Formed in 2007 from the merger of market leaders with more than 40 years of experience, UTi Israel is one of the country's foremost supply chain companies. Our more than 800 team members operate nine freight forwarding branches (with four land cross border locations) and four contract logistics and distribution centers.
Our full-spectrum freight operations include daily air consolidations and weekly ocean consolidations to and from all major destinations. Our dedicated and multi-client logistics services include state-of-the-art vendor managed inventory (VMI) solutions, inventory management solutions (IMS) and order management. We also provide assembly and sequencing as well as in-plant logistics. UTi Israel also is highly certified (ISO 9001 and 14001, OHSAS 18001, AEO, ITATA Agent, FIATA Member). Our strong relationships with relevant government agencies, leading air and ocean carriers, and other business partners mean that we can serve you when, where and how you need us.
As the market leader in customs brokerage, we have special capabilities to meet your compliance needs and to enable the efficient movement of your cargo. We can handle your goods for import into Israel, export out of Israel, or storage in Israel. We also provide logistical support for both inbound manufacturing operations and finished product fulfillment.
Whether you have standard cargo, dangerous goods, temperature-controlled items or high-value property, UTi puts its expertise at your service to meet your specific needs. Learn more today from UTi Israel Sales Director Limor Gil Shani.