The South Australian Business Chamber exists to support trade and commerce across South Australia and to help members and businesses grow. To do that we need a strong economy moving in a positive direction. We want to see jobs growth and economic growth and we want to see businesses exploring new markets, including greater exports.
However, it’s difficult for businesses to expand, employ more people or expand into new markets when they’re telling us they have little confidence in the economy and conditions are pushing them to the wire.
The South Australian Business Chamber doesn’t want to talk the economy down and we certainly don’t want negativity to become a self-fulfilling prophecy. However, the numbers are the numbers and the September quarter the South Australian Business Chamber – William Buck Survey of Business Expectations cannot be misinterpreted.
Business confidence is at record lows and given the South Australian Business Chamber – William Buck Survey of Business Expectations is the state’s longest running survey, that’s not to be taken lightly. Other bank and consumer surveys are reflecting the same thing. Our latest survey results are deflating because earlier this year we were optimistic that the economy was improving. Although many businesses are still kicking goals, including our recent Export Awards winners, as a collective there is a real lack of confidence permeating some industries, especially those with a business to consumer focus.
The slide is confidence – close to 45 points on a scale of 200 since December – can be blamed on a confluence of issues. You only have to turn to the media for a few minutes to understand why. We’re constantly hearing about high unemployment, interest rate cuts, uncertainty around land tax, geopolitical tensions and ongoing high utility costs. All of these impact on business confidence.
Businesses have told us conditions have tightened even further. Total sales, orders received and average selling price are all down causing a decrease in profitability. It’s a bit like the Coles commercial where everything is down, down, down, but in this case it’s not good for anyone.
However, there are few positive signs on the horizon with spending on training being up, which means people are still investing in their staff. Well done to those employers. Be assured that the South Australian Business Chamber will be doing its best to remain positive and get back on the optimistic train. We’re hoping people will open their wallets and get out there and spend as the weather warms up. The more we spend on little things – whether it be a coffee at a new café or a stationary order or print run before Christmas – the more our state’s small businesses will benefit.
If we can spend locally, it will also help. Several regional councils, and even American Express through its Shop Small program, are running campaigns to encourage people to spend locally, so let’s ease off Amazon and eBay and place our orders with local businesses and buy in the main street, shopping centre or mall near home. We’re hoping that by December, we can turn our deflation into elation.
This column was originally published in The Advertiser Business Journalon Tuesday, 12 November 2019.
Martin Haese is the Chief Executive of South Australian Business Chamber.
