Flyte Extruded Plastics currently stands as the largest custom sheet extruder in Australasia. However, Managing Director David Osborn explains that rising energy costs and new compliance regulations may make it difficult to invest in the innovation and people needed for the business to continue to grow in South Australia.
“My sense is that for a lot of small business owners, growing and preserving margins is increasingly challenging — the appetite for potential investment into innovation and growth is being affected due to energy costs and the complexity of the compliance landscape”.
“For example, in the two years that I have been involved in this business, our energy costs have almost doubled”.
Data from the September Quarter South Australian Business Chamber and William Buck Survey of Business Expectations reveals that the Cost of Overheads Index has reached 151.6 points. This index suggests that nearly 79% of respondents reported increasing overhead expenses, with no significant relief in sight.
Flyte Extruded Plastics is no stranger to innovation, as they specialise in recycling customers’ granulated waste back into sheet products that can be used for both commercial and industrial purposes.
David explains that his team thrives on developing products to solve unique problems across various sectors, but fears that these growth strategies will be curtailed by the growing complexity of the compliance landscape.
“Realistically, as a small business owner, I’m never going to have a dedicated HR department, so our management team and I are having to take on that burden and continue to educate ourselves to ensure we are compliant across our business,” he says.
The September Quarter South Australian Business Chamber and William Buck Survey of Business Expectations also reveals that over 57% of businesses now spend more time on industrial relations compliance, primarily due to recent legislative changes that have redefined casual employment and introduced a “right to disconnect” policy.
Similarly, 56.5% of businesses report dedicating more resources to work health and safety compliance, especially following the implementation of new psychosocial safety guidelines.
Despite tough business conditions, David and his team are continuing to focus on innovation as a source of growth, and like 58% of business owners, they are exploring artificial intelligence as a means of optimising business processes.
“Like many businesses we are in the early stages, but business conditions have caused us to ask the question, could AI help us optimise some of our processes, and whilst the initial investment is steep, we feel it will play a major role in our manufacturing program going forward”.
In an environment, where manufacturing continues to be moved offshore, David is proud to be a privately owned manufacturer operating in South Australia and hopes policies can be developed to ease the burden on small business owners and ensure the longevity of many long-standing South Australian businesses.
“We have been proudly manufacturing in South Australia for over 40 years, and we are determined to be here for another 40”.
