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Transcript of Xe Sunshine Coastmysunshinecoast.com.au/i/bm/oid34329/doc/Final Report_Sunshine... · Horse Mt...
Inskip Point
Double Island Point
Elbow Point Hook Point
Bullock Point
Vehicular Ferry
Teewah Coloured Sands
Laguna Bay
Summer Mtn.786m
Mt.Langley 868m
Tibberoowuccum
Tibrogargan
Mt.Beerwah 556mCoonowrin
Mt.Mellum 406m
Ngungun
Wild Horse Mt
Mt.Eerwah 402m
Mt.Cooroy 427m
Mt.Wolvi 378m
Mt.Teitsel 454m
Coondoo 289m
Borumba Mtn. 624m Kenilworth
Bluff 456m
Mt Kandanga576m
Mt Moorooreerai623m
Mt Kaniga 336m
Mt. PleasantMt. Byron 604m
SOUTH PACIFIC OCEAN
Great Sandy Strait
CORAL SEAPumicestone
Passage
BRUC
E HW
Y
BRUCE HWY
BRUC
E HW
Y
Eumundi - Ken
ilworth
Road
Maleny - Kenilworth Road
D'AGUILAR HWY
SUNS
HINE
COA
ST M
WY
4WD
only
4WD only
4WD
on
ly
Coochin Creek
Mar
y R
iver
Amamoor Creek
Lake Somerset
Lake Borumba
Cooloolabin Dam
Wappa Dam
Lake Weyba
Poona Lake
Baroon Pocket Dam
Currimundi LakeEwan
Maddock Dam
Lake MacDonald
Lake Cooroibah
LakeCootharaba
Lake Cooloola
National Country MusicMuster Site
BribieIsland
Fraser Island
Mudjimba Island
Mt. Bauple NP
Mt. Pinbarren NP
Great Sandy NP
Noosa NP
Mooloolah River NP
Dularcha NP
Kondalilla NP
Mapleton Falls NP
Conondale NP
Mt. Coochin NP
Kin Kin
Pomona
Teewah
Tewantin
Peregian Beach
Noosaville
Marcoola
Cooroy
CooranTraveston
ImbilEumundi
Bli Bli
MooloolabaBuderim Kawana Waters
Landsborough
MalenyMooloolah
Eudlo
Beerwah
Woodford Beerburrum
Kenilworth
Brooloo
Amamoor
Montville
Glenview
Sunshine Coast Airport
Tiaro
Gunalda
Rainbow Beach
Dagun
Kandanga
Yandina
Boreen
Mount Mee WoorimBongaree
Kilcoy
Coolum Beach
Glass House Mountains
Mapleton
Flaxton
Sunshine Beach
Poona
Tinnanbar
Alexandra Headland
Freshwater
Gympie
Tin Can Bay
Noosa Heads
NambourMaroochydore
Caloundra
Caboolture
Coral Sea
South Pacific Ocean
Maryborough
Brisbane
Domestic Airport
Train Line
Bruce Highway
N
© Tourism Queensland 2007
Darwin
Perth
Adelaide
Melbourne
Hobart
Sydney
BrisbaneSunshine Coast
Canberra
Cairns
Great Barrier Reef
Sunshine CoastSEPTEMBER 2011
Conducted by
Boardroom BusinessQueensland, Australiawww.boardroombusiness.com.au
Proudly sponsored bySunshine Coast TAFE
Sunshine Coast
Business Confidence is a unique barometer of economic activity. It is the measurement of what businesses THINK is going to happen in the future. Therefore business confidence reports are one of the few forward projecting data sets available to the business community.
Business Confidence reports are however, one of many sources of information available to businesses. Because of the uncertainty involved it is highly recommended that a variety of information sources be utilised by both the business community and policy makers for decision-making.
Boardroom Business, in partnership with the many business and government organisations on the Sunshine Coast, set about to understand confidence levels over time and created this series of Coast-wide surveys.
The objective was to assist local businesses in their decision-making by understanding LOCAL data and information. Businesses therefore do not have to solely rely on national data, or the media, for information on business confidence levels.
This survey was sponsored by the Sunshine Coast Institute of TAFE and we would like to thank them for supporting this initiative.
We wish to especially thank the many businesses that spent the time participating in the survey and answering the questions.
Cr Lew BrennanEconomic Development Portfolio Leader
‘‘ ‘‘This kind of information will inform businesses as they undertake and review strategies for growth.
It is a great initiative by the Boardroom Business team to better inform the local business community and Council, to assist everyone in responding to economic conditions.
b u s i n e s s c o n f i d e n c e s u r v e y September 2011
1www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 1
2
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 2
September 2011
The survey was designed and executed to capture business responses within the Sunshine Coast regional shire boundaries.
The questions were designed to be able to benchmark the Sunshine Coast region against other regions over a period time.
Opening on Thursday September 1st 2011 and closing on Tuesday September 27th 2011 the survey was distributed to over 2000 email addresses and via established business networks.
Conducted online, the survey allowed for anonymous participation and consisted of 12 questions. The questions were short and simple and took on average 5 minutes to complete.
The last question asked if the respondent wished to leave their email address for purposes of email alerts regarding the release of the results. The privacy of all respondents will be maintained at all times.
Additional questions were added to the survey series to focus on important industry sectors or regions across the Coast. For this survey we chose to focus on local supply and customer issues, as well as continuing our questions on the effects of major national and international trends on our local business community.
There were 493 responses to the September 2011 surveyThis report was made public on October 27th 2011.
There were 493
responses to the September 2011 survey
This report wasmade public on
Oct 27th 2011.
Survey Methodology
Number of Respondents
3
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 3
September 2011
Which industry do you belong to?
Using the Australian and New Zealand Standard Industry Classification codes (ANZSIC) for purposes of national comparisons.
The majority of respondents came from businesses operating in the Professional, Scientific and Technical Services sector, as well as those involved in Retail Trade and Accommodation and Food Services.
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
I get the information from the survey and it helps analyse where my business actually is. I use the demographic analysis to chunk down my business. It deep dives into the demographic analysis and tells me what is happening in my area. Maybe what is happening to me is happening to everyone in my area and I can see this in the Business Confidence Survey. I can give the information to head office and demonstrate what is happening geographically.
Vicki Clark CEO of ANZ local retail banking Sunshine Coast on the Business Confidence Survey
‘‘
‘‘QUESTION ONE
Industry sectors
Professional, Scientific and Technical Services - 17%Retail Trade - 12%Accommodation and Food Services - 10%Information Media and Telecommunications - 8%Construction - 8%Financial and Insurance Services - 7%Manufacturing - 7%Health Care and Social Assistance - 6%Rental, Hiring and Real Estate Services - 6%Arts and Recreation Services - 5%Education and Training - 4%Wholesale Trade - 3%Transport, Postal and Warehousing - 2%Administrative and Support Services - 2%Agriculture, Forestry and Fishing - 2%Electricity, Gas and Water Supply - 2%Public Administration and Safety - 1%
4
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 4
September 2011
In which region do you primarily operate your business from?
Maroochydore 76 15.4%
Noosaville 47 9.5%
Sunshine Coast Wide 46 9.3%
Caloundra 41 8.3%
Kawana Waters 25 5.1%
Mooloolaba 25 5.1%
Buderim 24 4.9%
Noosa Heads 24 4.9%
Nambour 22 4.5%
Cooroy 19 3.9%
Eumundi 19 3.9%
Other areas in Queensland / National / International 18 3.7%
Kunda Park 11 2.2%
Marcoola Beach 11 2.2%
Coolum 9 1.8%
Sippy Downs 9 1.8%
Sunshine/Sunrise Beach 9 1.8%
Tewantin 7 1.4%
Beerwah 5 1.0%
Gympie 5 1.0%
Maleny 5 1.0%
Minyama 4 0.8%
Montville 4 0.8%
Yandina 4 0.8%
Cotton Tree 3 0.6%
Doonan 3 0.6%
Peregian Beach 3 0.6%
Alexandra Headland 2 0.4%
Eudlo 2 0.4%
Forest Glen 2 0.4%
Glasshouse Mountains 2 0.4%
Kenilworth 2 0.4%
Bli Bli 1 0.2%
Landsborough 1 0.2%
Mapleton 1 0.2%
Palmwoods 1 0.2%
Pomona 1 0.2%
TOTAL 493 100%
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
QUESTION TWO
Regional responses across the coast
Responses %
5
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 5
September 2011
How has your business / organisation performed?
QUESTION THREE
General business confidence
General Business Confidence Much Weaker Somewhat Weaker
About the Same
Somewhat Stronger
Much stronger
A) How has your business performed over the LAST 6 months relative to the previous 6 months?
18% 28% 27% 23% 4%
B) How do you believe your business will perform in the NEXT 6 months compared with the last 6 months?
8% 18% 34% 30% 8%
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
A small proportion of respondents left part B blank, therefore the remaining percentage for question B (2%) is due to that factor.
The graph below compares the two questions and highlights that “Business conditions have been particularly challenging over the last six months, as the Australian economy deals with an accelerating resources sector that is trying to capitalise on rising commodity prices versus a non-mining sector that is becoming increasingly squeezed.”Darryl Conroy, Financial Markets Analyst at Suncorp Bank
For further economic commentary from Darryl Conroy, please turn to pages 13 and 14.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Much weaker Somewhat weaker About the same Somewhat stronger Much stronger
Num
ber o
f Res
pons
es
Last 6 months
Next 6 months
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
6
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 6
September 2011
In your business / organisation do you expect an increase, decrease or no change over the next 6 months in the following areas?
QUESTION FOUR
Confidence indicators
Area Significant decrease
Slight decrease No change Slight increase Significant increase
Profitability 14% 22% 24% 31% 8%
Staffing Levels 8% 19% 56% 14% 2%
Capital Investment 14% 11% 55% 16% 2%
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
Note: A small percentage of answers from each section were left blank.See page 16 of this report for confidence indicator trends over time
‘ ‘‘“All businesses go through cycles of growth, stability and decline and it is often only in difficult times that businesses look at their structures, their costs, their planning and how their markets are behaving. Businesses need to undertake strategies to make themselves more resilient - to work through all the cycles of business environments to generally have a long term future.”
Ross HepworthInstitute Director, Sunshine Coast Institute of TAFE
7
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 7
September 2011
Impact of major national and international issues on local business
QUESTION FIVE
How do you rate the following international and national developments or trends as they apply to your business?
0% 20% 40% 60% 80% 100%
Australian dollar
Online retail trading
Carbon Tax
Sustainable technologies
Social media
Fuel price trends
Upcoming State and/or Local Government elections
Availability and retention of skilled staff
Major Threat Minor Threat Neither Threat or Opportunity Minor Opportunity Major Opportunity
For each survey we have been focusing on a specific topic that is important to the local business community. For this survey we are focusing on the effect of major national and international issues on our local business community.
As the table above shows, there are specific high profile threats facing Coast businesses. The Carbon Tax is still creating a lot of uncertainty among business operators. 59% stated that the new tax will be a threat with 29% stating it will be a major threat. Interestingly, Question 11 (on page 1 1 of this report) shows 29% of respondents stating that the Carbon Tax is already constraining growth of their businesses before it is even introduced.
The high percentage of respondents (61%) who stated that high Fuel Price Trends are a threat demonstrate just how reliant we are on fossil fuel to generate business. One of the Governments aims of the Carbon Tax is to create innovation and investment in clean energy, it will be interesting to see if Coast businesses will take up that challenge in the long run given this high dependency.
Relatively equal numbers of respondents see the Upcoming State / Local Government Elections as both a threat and an opportunity; 28% see an opportunity and 26% see a threat.
With 29% of respondents in Question 11 of the survey (page 11) also stating that Problems with local or state government planning regulations were constraining growth of their businesses, there are real challenges for our political leaders to connect with businesses to address that dissatisfaction with government performance and regulations.
Almost a third of businesses responding indicated that the Availability and Retention of Skilled Staff was a threat. The Federal Government has forecast another 65,000 jobs will be created in the mining sector by 2015 as well as another 45,000 construction jobs. A statement from BHP Billiton in September 2011 has predicted Australia’s resources industry will need an extra 170,000 workers in the next five years, underlining the jobs bonanza set to hit mining states but threatening job supply to regions such as ours.
On a positive note was the 31% of respondents who saw Sustainable Technology as an opportunity for their businesses. Consumers are becoming more aware of Sustainable Technology and are increasingly directing their purchasing power towards goods and services that demonstrate environmental sustainability. Those who can promote clean and green credentials can open up greater business potential, and even reduce cost or increase revenue.
There was a decrease in the number of businesses that saw Online Retail Trading as a threat, down from 39% last survey to 20% this survey.
The High Australian Dollar remained a concern for 43% of businesses who responded, remaining steady from last survey.
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011).
8
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 8
September 2011
Are there any other major national or international threats or opportunities you would like to add, including any further comments?
There were an additional 198 responses / comments to this question. A common theme surrounding the majority of responses was a lack of consumer confidence.
The European debt situation was mentioned numerous times, with many Coast businesses fearing exposure to the situation and also fearing the uncertainty itself.
A lack of confidence in all levels of Government was mentioned on numerous occasions, with many feeling that leadership was lacking.
Of the opportunities, there were several mentions of businesses (not involved in mining) looking to Asia for growth.
The Asian Development Bank estimates that the escalating Asian middle class will account for more than 40 per cent of global consumption by 2030.1
While many early adopters have been trail blazing over the past couple of decades, as they invest and expand in Asian markets, it appears more and more obvious that these markets will present huge opportunities for Australia.
This will not only be in consumer goods but may also present opportunities for many service providers on the Coast willing to investigate these markets.
QUESTION SIX
1Haruhiko Kuroda, President of the Australian Development Bank at an address in August 2011 in Sydney
9
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 9
September 2011
QUESTION SEVEN
QUESTION EIGHT
In what area do the majority of your suppliers operate from?
If you use a large proportion of suppliers located outside the Sunshine Coast, would you explain why you use these suppliers?
Participants could select more than one answer to this question.
Sunshine Coast 294 59%
Interstate 88 18%
The rest of Queensland (not including Sunshine Coast) 74 15%
Overseas 33 7%
left blank 4 1%
493 100%
Not applicable as I use mostly local suppliers 174 32%
No local supplies / suppliers available 151 28%
Range of Products 89 16%
Cost / price 65 12%
Quality 35 6%
Location 14 2%
Other 20 4%
0%
Total 548 100%
The majority of Coast businesses are using other local businesses for the bulk of their purchases, where possible. However, the fact that only 59% of businesses stated that they sourced goods and services locally may present on opportunity for local suppliers to fill the void.
In addition to the table above, reasons given for not using local suppliers were largely around the fact that many local businesses are tied in to franchise agreements that require the use of a certain supplier by all franchisors. Similarly, comments were also left explaining that some businesses were part of a larger buying group which allowed the business to obtain a better price and greater range of products and services outside the region.
10
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 10
September 2011
In what area do the majority of your customers operate from?
Responses %
Sunshine Coast 320 64%
The rest of Queensland 91 18%
Interstate 56 11%
Overseas 22 5%
left blank 4 1%
Total 493 100%
QUESTION NINE
QUESTION TEN
What would assist you in building a greater local customer base?There were over 300 responses to question 10 and it was great to see business owners and managers being positive in their suggestions. The theme of a lot of respondents included the need for more of a connection amongst Coast businesses and an awareness of what we all do in our businesses.
Below are some selected responses:
• Betterlocalbusinessnetworkingevents.Weneedmorebusinessesworkingtogethernotagainst each other.
• Centralbusinessregistrybasedonservices.
• StateGovernmentdecentralisingsomeoftheirlargegovt.officesoutsideofBrisbaneCBD.
• UpgradeSunshineCoastAirport.
• Theseachangemigrationtostartagain.
• Forumsthatallowustointeractwiththelocalbusinesscommunityina“consultativeway”.Seminars, Infomercials, Special Interest Groups etc.
• Greaterfocusandpromotiononthebenefitsandmultipliereffecttooureconomyofcustomers/ business and local supporting/buying local - (ie regional containment is vitally important to the economic sustainability and growth of Sunshine Coast)
• Moredisposableincomewithinthecommunity.
• Lowercommercialrentswouldenablethebusinesstoremaincompetitive.
• Moremoneyavailabletoinvestinmarketingandcreatingaprofessionalwebsite,aswellaslearning more business skills at workshops.
• Morestaffwiththerightattitude.
• WehavereliedonTourism/Hospitality&Constructionformanyyearsandeverydownturnthese are among the first industries to retract significantly. Diversification is crucial.
• Fewercompetitors!
A strong response of 64% demonstrates that most Sunshine Coast businesses derive the bulk of their income from Sunshine Coast locals.
11
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 11
September 2011
In your opinion, what are the major constraints on the growth of your business? Participants could select more than one answer to this question
QUESTION ELEVEN
Major constraints on business
Responses Overall Percentage of Respondents
Rising overheads and utility costs 239 9.1% 54%
Global / national economic performance 214 8.1% 48%
Price pressure from customers 191 7.3% 43%
Price pressure from competitors 190 7.2% 43%
Declining customer base 165 6.3% 37%
Declining demand from customers 165 6.3% 37%
Declining visitor numbers 153 5.8% 34%
Problems with local or state Government planning regulations 1 4 1 5.4% 32%
Australian dollar (new to this survey) 130 4.9% 29%
Carbon tax (new to this survey) 129 4.9% 29%
Rising transport costs 120 4.6% 27%
Licensing and regulations 1 1 9 4.5% 27%
Difficulties in obtaining finance / extending credit facilities 1 1 1 4.2% 25%
Rising production costs 85 3.2% 19%
Availability of skilled workers 74 2.8% 17%
Price pressure from suppliers 72 2.7% 16%
Increasing competition from low-cost imports 65 2.5% 15%
Personal and/or home pressures 59 2.2% 13%
Environmental catastrophes (oil slicks, hurricanes, flooding etc) 49 1.9% 11%
Broadband and information technology access 46 1.7% 10%
Transport infrastructure 39 1.5% 9%
Limited supply of production materials and/or product 25 1.0% 6%
Access to training 19 0.7% 4%
Shortage of industrial / commercial land 17 0.6% 4%
Reduced demand for exports 13 0.5% 3%
Total 2630 100.0%
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
Please see page 17 of this report for Major Constraint trends over time.
12
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 12
September 2011
QUESTION TWELVE
Improvements to your business
What would make a difference to the profitability or improvement of your business?
With over 250 respondents to this question we received a wide variety of responses, with both consumer and business confidence being mentioned many times. Each survey businesses tell us that they are frustrated by negative media reporting on the weather and the economy, and this was once again prevalent.
Naturally we can’t list all of your responses in this one report, as many responses were quite detailed. However what we can do is share all of your responses with the various chambers of commerce, local and state government branches, and industry groups so that they can work with you on your ideas and initiatives.
As you know, your responses are anonymous, therefore we appreciate your frank and forthright comments. This question we believe is an important one to continue in future surveys. If you have any comments on how best to improve this survey please don’t hesitate in contacting us.
Below are some examples of comments left for this question:
• Anunderstandingfromregulatorsthatwhattheywouldliketohappenisdifferentfrom what happens in the real world.
• Bettertrainedmanagementandstaff.
• Cheaperstaffwages.
• Fineweather,lessdoomsdaynegativemediacoveragehereandoverseas.
• Theword‘smallbusiness’isoftenusedbypoliticiansastheengineroomoftheeconomy but nothing significant is ever done to support them.
• Lesscompliance/regulationfromalllevelsofgovernment.
• Lowerinterestratesandarenewedvigourinthepropertyindustry.
• Morerealisticpricingfromcompetitors.
• Governmentpurchasinggivingpreferencetolocalcompaniesthatembracesustainable practices.
• AdailyflightoutofMaroochydoretoSydneythatgetsbusinesstravellersontheground by 8am and a return flight after 5.30pm.
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
13
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 13
September 2011
Economic analysis
The Times They Are A-Changin’
Sunshine Coast Business Confidence Survey - Economic Commentary by Darryl Conroy, Financial Markets Analyst with Suncorp Bank.
This little ditty by Bob Dylan is a timely reminder that change is part and parcel of the world in which we live, but the challenge for most is that we facechangeonsomanylevelsallatonce!
Political change Many of the developed economies of the world (US, Germany, Japan, Australia) have a minority government, which is stymieing their ability to effectively govern. And it’s worse still for Northern African countries, who are experiencing revolutionary type change. Here on the Sunshine Coast, upcoming state elections and a minority federal government have many businesses unwilling to commit (investment and staff hiring) amid the possibility for big changes (carbon tax and industrial relations).
Social change Social media is changing the way in which we communicate, and the instant nature of this communication is leading to time compression, eg London riots. Time compression also seems to be influencing the way we holiday, for instance taking shorter holidays.
Economic change An overriding theme seems to be a power shift from the west to the east, which affects with whom we are likely to conduct business into the future - Asia. In more recent times, the financial crisis has ushered in a period of much change for the financial world, with implications for consumers and businesses alike. The financial crisis lingers on with some countries (Greece, Portugal, Italy, and Spain) on the brink of debt default and threatens to break-up the regions monetary union - the Euro.
Technological change Technology has exploded in the last few years and many businesses are now grappling with how to understand and adopt, ie internet trade.
Climate change we are currently at the forefront of the climate change movement with the announcement of a carbon tax, which has implications for businesses and consumers. The business survey revealed a frustration in dealing with any level of government (red tape), but the regional council does appear to be ahead of the curve of many other regions in terms of sustainable growth, which is a positive differentiator for attracting tourists.
Ontopofallofthis,hereinAustralia,wearedealingwithaneconomythatisenduringenormous‘structuralchange’ as a result of a one in one hundred and fifty year resources boom. This resources boom is dragging investment and people away from traditional businesses (like tourism, manufacturing, construction, and retail) and into the mining and energy sectors. As a consequence of all this change, consumers and businesses remain highly uncertain, preferring to put-off spending and investment decisions until a period of stability can be achieved.
Darryl Conroy is a Financial Markets Analyst with Suncorp Bank in Brisbane.
Darryl has over fifteen years experience in the field of finance and treasury. Darryl is Suncorp Bank’s Financial Markets Analyst within the International Trade &FinancialMarket’steaminBrisbane, and has been with Suncorp since 2004.
14
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 14
September 2011
Economic analysis
The lingering question though, is how do we deal with what feels like extreme levels of uncertainty that undermines business and consumer confidence?
Business conditions have been particularly challenging over the last six months, as the Australian economy deals with an accelerating resources sector that is trying to capitalise on rising commodity prices versus a non-mining sector that is becoming increasingly squeezed. We are suffering from Dutch Disease, that is, a booming resources sector draws ever increasing amounts of investment and people away from traditional businesses and toward the mining and energy industries.
This concept is especially tough on economies like the Sunshine Coast that rely heavily upon retail, accommodation and construction business. Another traditionally strong sector that has fallen in recent times is the housing sector, with a drop in house prices and threats of rate rises affecting consumer confidence, and much weaker levels of building activity the construction industry.
Consequently, the September Business Confidence Survey saw a weaker last 6 months. There was however, an improvement from April’s survey. Once again, the next 6 months is expected to improve even further.
15
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 15
September 2011
0%
20%
40%
60%
80%
100%
Sep-11 Apr-11 Sep-10 Apr-10 Jan-10 Sep-09 Jun-09 Apr-09
Business Performance over NEXT 12 months
WeakerSame or Stronger
This is the eighth in the series of surveys covering the entire Sunshine Coast. Therefore, over time we can track business confidence levels.
Time series analysis
General business confidence trending over time
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
Business Performance over NEXT 6 months
How do you believe your business will perform in the NEXT 6 months compared with the last 6 months?
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
0%
20%
40%
60%
80%
100%
Sep-11 Apr-11 Sep-10 Apr-10 Jan-10 Sep-09 Jun-09 Apr-09
Business Peformance over LAST 6 months
WeakerSame or Stronger
Business Performance over LAST 6 months
How has your business performed over the LAST 6 months relative to the previous 6 months?
16
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 16
September 2011
Confidence Indicators
0%
20%
40%
60%
80%
100%
Sep-11 Apr-11 Sep-10 Apr-10 Jan-10 Sep-09 Jun-09 Apr-09
Profitability
DecreaseNo change/increase
Profitability
Staffing Levels
Capital investment
0%
20%
40%
60%
80%
100%
Sep-11 Apr-11 Sep-10 Apr-10 Jan-10 Sep-09 Jun-09 Apr-09
Staffing Levels
Decrease
No change/increase
0%
20%
40%
60%
80%
100%
Sep-11 Apr-11 Sep-10 Apr-10 Jan-10 Sep-09 Jun-09 Apr-09
Capital Investment
Decrease
No change/increase
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
In your business / organisation do you expect an increase, decrease or no change over the next 6 months in the following areas?
17
Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 17
September 2011
Top 5 Major Business Constraints trending over time
Sept 11 April 11 Sept 10
Rising overheads and utility costs
Raising overheads and utility costs
Rising overheads and utility costs
Global / national economic performance
Price pressure from customers
Global / national economic performance
Price pressure from customers
Price pressure from competitors
Price pressures from customers
Price pressure from competitors
Global/National economic performance
Price pressures from competitors
Declining customer base Rising transport costs Problems with local or State Government planning regulations
April 10 Jan 10 Sept 09 June 09
Global / national economic performance
Rising overheads and utility costs
Price pressure from customers
Global / national economic performance
Rising overheads and utility costs
Price pressure from competitors
Rising overheads and utility costs
Rising overheads and utility costs
Declining visitor numbers
Price pressure from customers
Price pressure from competitors
Price pressure from customers
Price pressure from competitors
Global / national economic performance
Global / national economic performance
Price pressure from competitors
Price pressure from customers
Problems with local or state Government planning regulations
Declining demand from customers
Declining customer base
Source: Boardroom Business (2011) Sunshine Coast Business Confidence Survey (September 2011)
In your opinion, what are the major constraints on the growth of your business?
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Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y
www.boardroombusiness.com.au | Sunshine Coast, Queensland, Australia | Page 18
September 2011
The Sunshine Coast Institute of TAFE are the naming right sponsor for this current survey series. Without their support this report would not be possible. A big thank you to the entire TAFE team!
In addition to the Sunshine Coast Institute of TAFE, we would like to sincerely thank the
following for their support:
Sunshine Coast Regional CouncilSuncorp BankSunshine Coast Destinations LtdDiscover MaroochyCaloundra TourismTourism Noosa Maroochydore Chamber of CommerceNoosa Chamber of CommerceCooroy Chamber of CommerceCoolum Business and TourismCaloundra Chamber of CommerceEumundi Chamber of CommerceKawana Waters Chamber of CommerceMooloolabaBusiness&TourismNambour District Chamber of CommercePeregian Beach Business AssociationYandina Chamber of CommerceSunshine Coast DailyThe Noosa JournalNoosa NewsQueensland Department of Employment, Economic Development and InnovationSunshine Coast Innovation CentreSunshine Coast Business Women’s NetworkUrban Development Institute of AustraliaSurfAir on Marcoola BeachCorporate and Group Xperiences
If you are involved in a business organisation on the Sunshine Coast, and interested in supporting the survey, we would like to hear from you.
CONTACT US: [email protected] www.boardroombusiness.com.au
Acknowledgements
Copyright © 2011. All Rights ReservedLegal Disclaimer This report provides information designed to help users cope with their own business, financial, legal and other needs. This information is not the
same as retaining experts in those fields for advice. Although we go to great lengths to ensure the information is accurate, we strongly recommend you consult an expert, including but not limited to an accountant, financial services consultant, lawyer or other professional as appropriate. Nothing contained in this report is to be considered as the rendering of financial, professional, legal or other advice for specific cases, and users are responsible for obtaining such advice from their own financial, legal or other
counsel. The information contained in this report is intended for educational, background and informational purposes only.
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Sunshine Coast b u s i n e s s c o n f i d e n c e s u r v e y September 2011
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Go to www.boardroombusiness.com.au
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SUNSHINE COAST BUSINESS CONFIDENCE SURVEY
This report has been produced by Boardroom Business in partnership with the Sunshine Coast Business Community.
Yandina Chamberof Commerce