Who is even mildly fed up with talking about COVID-19? It has been a tough two years for many within the business community, and in these recent months, we’ve dealt with Omicron when we thought we were coming to the end of it all. Now, as we reach the mid-mark of the first quarter of the 2022 calendar year, it is time to look beyond the immediate term challenges and start thinking about future opportunities.
Despite the challenging conditions and confidence taking a pronounced decline in the 2021 December quarter of the South Australian Business Chamber William Buck Survey of Business Expectations, we see hope for the future. Since the South Australian Business Chamber published the survey report last Tuesday, other public commentary has been along the same lines.
One positive indicator is that nearly half of South Australian businesses plan to invest in plant, equipment or machinery in the next 18 months. Although almost half of those businesses who have invested in new assets are concerned about interest rates, over a third indicated that an interest rate rise will not materially impact any future decisions to invest in plant, equipment or machinery.
At a recent briefing by the South Australian Business Chamber Corporate Member Commonwealth Bank, their Head of Australian Economics shared insight into likely macroeconomic scenarios for Australia. Much like our own survey results, there is a quiet sense of optimism for the future, with forecasts that consumer and business confidence will bounce back as Omicron subsides. However, confidence can be fragile. A clear plan for the business community will give them the confidence to do what they do best. An injection of strategic support is required from the State Government to create the best business environment as we emerge out of the COVID era.
Interest rates are one of those ‘water cooler’ discussions we all like to have. With younger generations not having experienced an interest rate increase, any mention of a rate rise may be a concern, especially for business start-ups. Our friends at CommBank suggest that with the RBA communicating that it will increase the cash rate when inflation is ‘sustainably within the target range’, the market may have inherent checks and balances.
The South Australian business community should start thinking about these broader business conditions and what we need as a state. We know the labour shortage is the most important issue for business owners and employers. As an apolitical independent member-based employer association, the South Australian Business Chamber is not pushing any particular party’s policies in the upcoming state election. Without fear or favour, we continue to advocate for the very best conditions for South Australian businesses.
Tomorrow, the South Australian Business Chamber hosts the Premier of South Australia in the second of our Vision for the State pre-election luncheon series. We heard from the Opposition Leader, the Hon Peter Malinauskas, late last year with his vision should his party be elected. We now look forward to hearing from the Premier. We need our next State Government, as elected on 19 March 2022, to think about every possible policy and support measure to ensure South Australia has a super-charged economy to attract all the right people and all the right investment.
