2015: Here We Go Again?

Ryan Buckland

Principal Economist, Macroeconomics

CCI Economics

Need to know more?

Thriving and Surviving in the Current Market

Paul Rowe B.Bus ASA FFin Manager, Business Consulting

Perception V

Reality

The financial health of your business

Working in and on your Business is now

Not Negotiable

“You don’t know what you don’t know!”

The 10 steps to a healthy business

• Need for quality, timely and accurate data

• In house or outsourced

• Importance of Budgeting

• Financial advice

1. Management Information

• Rental landscape

• Market reviews

• Your rights!

• Information is key

2. Lease Negotiation

• Understand what you are actually paying “line fees, risk margins, liquidity margin....”

• Negotiate or seek out someone who can

3. Interest Rates & Fees

• Knowledge is power

• Terms to pay

• Discounts/rebates

• Working capital finance options

4. Trading Terms

5. Pricing Policy

• Understand what you are or want to be

• Put in place an appropriate pricing policy

• Understand the difference between Mark up and Gross Profit

• Concept of finite debt servicing

• Materially change a variable

• Interest only versus principle and interest

6. High Gearing

• Why should I?

• Understand your business

• Understand your customers

• Understand your staff

7. Working in your Business

• SWOT Analysis

• Product Mix

• Marketing success

• New markets and services

• Staff optimisation

8. Working on your Business

• Desert Island syndrome and its risks

• Build a network of professionals

• Have a support mechanism

• Be honest with yourself and others

9. Ask for Help

Don’t let employee relations hamper growth

Jessica Price Manager, Employee Relations Consulting

Employee relations challenges that can hamper growth

Compliance

RISKS

• Time

• Money

• Reputation

Right talent

RISKS

• Lost productivity

• Increased Training Costs

• Reduced Morale

• Performance management

Compliance The risks

Unfair Dismissal

Adverse Action

Personal Fines

Professional Reputation

Litigation

Time & Resources

Bullying Complaints

Underpayment claims

Sham Contracting

Right Talent The risks Performance

Management

Retaining talent

Workforce planning

Training

People management

Time & Resources Clear

expectations

Recruitment

Engagement

International Trade Darren Levy

Manager, International Trade Services

16 Years Working in Malaga for Import/Export SME’s

A Quick Case Study Video and Cellular Batteries and Accessories – Import wholesaler in Malaga Importing from Hong Kong. Selling locally. Serving a local WA market, then expanding Australia wide. Expanded sales to over $5,000,000 p/a in 3 years Number 2 in the market for Cellular and Number 1 in the market for Video Batteries and accessories

Business Growth through Importing

How did we grow so fast?

Lowest Cost to market Vendor Refill System

Business Growth through Importing

Lowest Cost to market Vendor Refill System

Business Growth through Importing

Business Growth through Importing

Critically reliant on a just-in-time import and distribution supply chain…

Business Growth through Importing

• Which import licences apply?

• What are the rules for shipping by air and by sea?

• How do I get the lowest landed cost and still meet a just in time supply model?

• Am I using the most favourable incoterms? FOB, CIF, EXW, DDP

• What are the compliance and testing rules? – emissions, chemicals?

• What are the labelling and sales requirements for each state? (Are the manuals in English?)

• What documents do I require to land and clear the goods?

• How do I balance my buyer and supplier credit to manage cash flow?

• How much duty applies and which Free Trade Agreements can give me a price advantage?

And… resolving critical import issues:

Free Trade Agreements

Free Trade Agreements in Force 9 in force

1 concluded 8 in negotiation Bilateral Agreements

• Chile • New Zealand • Japan • Malaysia • Singapore • Thailand • Korea • USA

Multilateral Agreements

• ASEAN

Key Message on Importing

• Find an independent import agent.

• Recommend the most appropriate freight forwarder

• Freight forwarder must have an office in-country

• Strict import product and quarantine compliance

• Ensure your Tariff Harmonising Code is correct

• Use Free Trade Agreements to lower your import prices

• Know your incoterms

• Manage your contracts

How CCI can help with Importing?

• Act as an import agent – unbiased advice

• Translation services in 20 languages

• Canton Fair – Trade mission in April 2015

• Free Trade Agreement research

• Import consulting

Business Growth through Exporting

• 13 years building export business for a Malaga manufacturer.

• Grew to number 2 in the US market with sales across 40+ countries.

• Today recognised as a global leader in telecommunications for broadcast

radio stations.

Business Growth through Exporting

Understand your export readiness gaps

Develop an export plan

Certificates of Origin and Carnets

Export Market Development Grant

Claim up to 50% of your export marketing costs.

$15,000 threshold

Claim up to $150,000

How can CCI help?

- Austrade Tradestart – Find buyers through the Austrade Tradestart network.

- 4 Austrade locations in Japan - Tokyo, Sapporo, Osaka and Fukuoka - Assisted Trade Missions

- Export Consulting Services

- Australian Made Logo

- International Translation service in 20

languages

- Connection with EFIC for Export Finance

- Export Readiness Training

Competitive advantage in a changing OSH landscape

Jennifer Low, OSH & WC Policy Adviser

The Changing Landscape

• Challenging economic climate “More for less”

• Significant changes to the legislative landscape

• Increasing costs and responsibilities

People

Operating Environment

Systems

Why invest in safety?

Costs

• Workers’ Compensation

• Prosecution

• Insurance

• Reputation

• Personal Accountability

ROI

• Health and wellness programs: $1.40 to $4.705.

• Mentally Healthy workplace: $2.30 in benefits

Major challenges for business:

Workforce Profile

Definition of ‘worker’

Officers

Mental Health

‘softer’ safety

Premiums

Contractors

Demographics

Perception of safety -

Generational

Cultural Diversity

Looking forward

• Understanding what your clients are looking for is key!

• prosecutions,

• safety breaches,

• bad publicity,

• injuries/fatalities,

• poor systems that create inefficiencies,

• downtime due to ill health

• insurance

CCI Membership Duncan Guy, Senior Manager, Membership

What is CCI Membership

Who are CCI Members?

Industry focus