The challenge in attracting skilled workers to regional South Australia and a persistent increase in costs see business confidence in negative territory, according to the findings in our 2024 Regional Voice Survey, released today.
The cost and availability of labour, and high energy prices are the main concerns of regional businesses in South Australia according to the survey, with 60% of respondents naming these among the top five biggest issues for their business.
The 2023 – 24 Regional Voice is the fourth instalment since the inaugural study in 2016 and is the most comprehensive survey of its kind for regional South Australian businesses.
The survey showed confidence in the SA economy at 91.2 points and national confidence 81.3 points. 100 is a neutral score.
These scores did not come as a surprise to us at the Chamber. They have captured the sentiment we have been hearing from our regional members for some time and are only slightly more optimistic than our 2020 survey, conducted amid the COVID-19 pandemic.
While each of the regions have their own unique set of opportunities, such as renewables in the Upper Spencer Gulf, or are reporting off the back of specific challenges, such as floods in the Riverland, there are consistent themes that have emerged.
Businesses across the state are feeling the impact of a slowing economy and rising costs and are struggling to find and afford the workers they need, with a lack of suitable housing compounding this issue.
More than 90% of respondents reported that their costs of materials and costs of overheads have increased in the previous six months.
Access to housing was nominated by nearly half (48%) of respondents as one of the top five issues constraining businesses in their region. “The results show how integral housing availability is for regional growth and attracting and retaining staff.
An increasing number of businesses are unable to make the hiring decisions they want simply because of inadequate housing supply.
While company tax rates were found to be the most constraining tax across all regional businesses, for businesses with 20 or more employees, payroll tax was overwhelmingly seen as the biggest handbrake to growth.
This supports our position that a regional payroll tax discount of 50% is necessary to make our regions competitive with their interstate neighbours who already receive a reprieve from their governments.
The survey found that regional businesses placed value on grants and assistance programmes that supported their business.
Events and tourism activities that drive visitation to the regions and programs or grants that help businesses innovate and prosper make a genuine difference.
These people are not looking for handouts. They are very resilient and come together to support their own communities and any investment that comes their way is put to good use.
