03.09.2014 Views

Sunshine Coast Business Confidence Survey April 2013 Report

Sunshine Coast Business Confidence Survey April 2013 Report

Sunshine Coast Business Confidence Survey April 2013 Report

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>Sunshine</strong> <strong>Coast</strong><br />

BUSINESS CONFIDENCE SURVEY<br />

APRIL <strong>2013</strong><br />

Conducted by Boardroom <strong>Business</strong><br />

Supported by <strong>Sunshine</strong> <strong>Coast</strong> Council<br />

Queensland, Australia


<strong>Business</strong> <strong>Confidence</strong> is a unique barometer of economic<br />

activity. It is the measurement of what businesses<br />

THINK is going to happen in the future. Therefore<br />

business confidence reports are one of the few<br />

forward projecting data sets available to the business<br />

community.<br />

<strong>Business</strong> confidence reports are however, one of<br />

many sources of information available to businesses.<br />

Because of the uncertainty involved it is highly recommended<br />

that a variety of information sources be<br />

utilised by both the business community and policy<br />

makers for decision-making.<br />

Boardroom <strong>Business</strong>, in partnership with the many<br />

business and government organisations on the <strong>Sunshine</strong><br />

<strong>Coast</strong>, set about to understand confidence levels<br />

over time and created this series of <strong>Coast</strong>-wide<br />

surveys.<br />

The objective was to assist local businesses in their<br />

decision-making by understanding LOCAL data and<br />

information. <strong>Business</strong>es therefore do not have to solely<br />

rely on national data, or the media, for information<br />

on business confidence levels.<br />

This survey was supported by the <strong>Sunshine</strong> <strong>Coast</strong><br />

Council and we would like to thank them for their<br />

help with this initiative.<br />

We wish to especially thank the many business owners<br />

and managers that spent the time participating in<br />

the survey and answering the questions.<br />

Boardroom <strong>Business</strong> conducts and analyses the results<br />

of the <strong>Sunshine</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> independently.<br />

www.boardroombusiness.com.au Page 2


SURVEY METHODOLOGY<br />

The survey was designed and executed to capture<br />

business responses within the <strong>Sunshine</strong> <strong>Coast</strong><br />

boundaries.<br />

The questions were designed to be able to<br />

benchmark the <strong>Sunshine</strong> <strong>Coast</strong> region against other<br />

regions over a period time.<br />

Opening on Monday <strong>April</strong> 1st <strong>2013</strong> and closing on<br />

Friday <strong>April</strong> 26th <strong>2013</strong>, the survey was distributed<br />

to over 3,000 email addresses and via established<br />

business networks.<br />

Conducted online, the survey allowed for anonymous<br />

participation and consisted of 10 questions. The<br />

questions were short and simple and took on average<br />

2 - 3 minutes to complete.<br />

The last question asked if the respondent wished to<br />

leave their email address for purposes of email alerts<br />

regarding the release of the results. The privacy of all<br />

respondents will be maintained at all times.<br />

Additional questions were added to the survey series<br />

to focus on important industry sectors, regions or<br />

topics across the <strong>Coast</strong>. For this survey, we chose to<br />

focus on the impact that the new Oceanside Kawana<br />

Health Precinct, including the <strong>Sunshine</strong> <strong>Coast</strong><br />

University Hospital, will have on <strong>Sunshine</strong> <strong>Coast</strong><br />

business.<br />

SURVEY RESPONSE<br />

This report was<br />

made public on<br />

May 10th <strong>2013</strong><br />

www.boardroombusiness.com.au Page 3


QUESTION ONE<br />

INDUSTRY SECTORS<br />

Which industry do you belong to?<br />

Using the Australian and New Zealand Standard Industry Classification codes (ANZSIC) for purposes of national<br />

comparisons.<br />

Agriculture, Forestry & Fishing<br />

1%<br />

Electricity, Gas & Water Supply<br />

1%<br />

Government Admin. & Defence<br />

1%<br />

Mining<br />

1%<br />

Wholesale Trade<br />

3%<br />

Transport and Storage<br />

4%<br />

Property & <strong>Business</strong> Services<br />

15%<br />

Retail Trade<br />

14%<br />

Education<br />

4%<br />

Accomm, Cafes and Restaurants<br />

14%<br />

Personal and Other<br />

4%<br />

Cultural and Recreational<br />

4%<br />

Communication<br />

6%<br />

Manufacturing<br />

8%<br />

Health and Community<br />

4%<br />

Financial and Insurance<br />

6%<br />

Construction<br />

8%<br />

Respondents %<br />

Property and <strong>Business</strong> Services 63 15%<br />

Retail Trade 58 14%<br />

Accommodation, Cafes and Restaurants 57 14%<br />

Manufacturing 34 8%<br />

Construction 33 8%<br />

Financial and Insurance 25 6%<br />

Communication Services 24 6%<br />

Health and Community Services 18 4%<br />

Cultural and Recreational Services 17 4%<br />

Personal and Other Services 17 4%<br />

Education 16 4%<br />

Transport and Storage 16 4%<br />

Wholesale Trade 14 3%<br />

Agriculture, Forestry and Fishing 5 1%<br />

Government Administration and Defence 4 1%<br />

Electricity, Gas and Water Supply 3 1%<br />

Mining 3 1%<br />

TOTAL 407 100%<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

www.boardroombusiness.com.au Page 4


QUESTION TWO<br />

REGIONAL RESPONSES ACROSS THE COAST<br />

In which region do you primarily operate your business from?<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

Respondents %<br />

Maroochydore 55 14%<br />

Caloundra 36 9%<br />

Noosaville 35 9%<br />

Nambour 30 7%<br />

Noosa Heads 30 7%<br />

Multiple <strong>Sunshine</strong> <strong>Coast</strong> locations 28 7%<br />

Other areas in Queensland / National / International 20 5%<br />

Buderim 17 4%<br />

Coolum 15 4%<br />

Mooloolaba 15 4%<br />

Kawana Waters 11 3%<br />

Sippy Downs 11 3%<br />

Maleny 10 2%<br />

Kunda Park 9 2%<br />

Cooroy 8 2%<br />

Tewantin 8 2%<br />

Eumundi 7 2%<br />

Marcoola Beach 7 2%<br />

Montville 7 2%<br />

Yandina 7 2%<br />

Palmwoods 5 1%<br />

Alexandra Headland 4 1%<br />

Doonan 4 1%<br />

<strong>Sunshine</strong>/Sunrise Beach 4 1%<br />

Beerwah 3 1%<br />

Bli Bli 3 1%<br />

Cotton Tree 3 1%<br />

Landsborough 3 1%<br />

Peregian Beach 3 1%<br />

Forest Glen, Glasshouse Mountains, Kenilworth,<br />

9 1%<br />

Mapleton, Minyama and Woombye<br />

TOTAL 407 100%<br />

www.boardroombusiness.com.au Page 5


QUESTION THREE<br />

GENERAL BUSINESS CONFIDENCE<br />

How has your business / organisation performed?<br />

Much<br />

Weaker<br />

Somewhat<br />

Weaker<br />

About<br />

the Same<br />

Somewhat<br />

Stronger<br />

Much<br />

Stronger<br />

How has your business performed<br />

over the LAST 6 months relative to<br />

the previous 6 months?<br />

How do you believe your business<br />

will perform in the NEXT 6 months<br />

compared with the last 6 months?<br />

14% 18% 30% 31% 7%<br />

5% 15% 40% 32% 8%<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

50%<br />

45%<br />

40%<br />

Last 6 months<br />

35%<br />

30%<br />

Next 6 months<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0<br />

Much<br />

Weaker<br />

Somewhat<br />

Weaker<br />

About the<br />

Same<br />

Somewhat<br />

Stronger<br />

Much<br />

Stronger<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

For economic commentary on these results, please turn to page 12.<br />

www.boardroombusiness.com.au Page 6


QUESTION FOUR<br />

CONFIDENCE INDICATORS<br />

In your business / organisation do you expect an increase, decrease or<br />

no change over the next 6 months in the following areas?<br />

Area<br />

Significant<br />

Slight<br />

No change<br />

Slight<br />

Significant<br />

Decrease<br />

Decrease<br />

Increase<br />

Increase<br />

Profitability 10% 22% 28% 34% 6%<br />

Staffing Levels 6% 12% 60% 20% 2%<br />

Capital Investment 11% 8% 57% 16% 8%<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

”All businesses go through cycles of growth, stability and decline and it is<br />

often only in difficult times that businesses look at their structures, their<br />

costs, their planning and how their markets are behaving. <strong>Business</strong>es<br />

need to undertake strategies to make themselves more resilient – to work<br />

through all the cycles of business environments to generally have a long<br />

term future.”<br />

Ross Hepworth<br />

President, Maroochydore Chamber of Commerce<br />

www.boardroombusiness.com.au Page 7


QUESTION FIVE<br />

FOCUS AREA OCEANSIDE KAWANA HEALTH PRECINCT<br />

For each survey we have been focusing on a specific topic that is important to the local business community.<br />

For this survey we are focusing on the Oceanside Kawana Health Precinct, including the <strong>Sunshine</strong> <strong>Coast</strong> University<br />

Hospital and its effects on <strong>Sunshine</strong> <strong>Coast</strong> businesses.<br />

Is your business affected by the health sector?<br />

Respondents %<br />

Yes, my business is directly affected by the health industry 29 7%<br />

Yes, my business is indirectly affected by the health industry 77 19%<br />

No, my business is not affected by the health industry<br />

(Please go to question 8)<br />

286 70%<br />

I am unsure 14 3%<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

TOTAL 406 100%<br />

QUESTION SIX<br />

FOCUS AREA OCEANSIDE KAWANA HEALTH PRECINCT<br />

If your business is affected by the health sector, what anticipated benefits<br />

will the new Oceanside Kawana Health Precinct have on your business?<br />

There were just under 200 responses to the next two questions, with the majority commenting on the fact that<br />

more people working at the Oceanside Kawana Health Precinct will mean more potential clients and customers<br />

for <strong>Coast</strong> businesses. A selection of other responses are below.<br />

“By increasing confidence in the development<br />

industry generally once significant physical<br />

outcomes are observed.”<br />

“There may be indirect benefits; i.e. providing<br />

services to new companies that service the<br />

health industry.”<br />

“Potential increase in Training for staff working<br />

in any way with the Kawana Health Campus.”<br />

“More affluent professionals with disposable incomes<br />

will increase trade.”<br />

“Indirectly the hospital will benefit my business<br />

through attracting investment and population<br />

growth which will increase confidence, spending<br />

and growth across many other industries<br />

in addition to health across the <strong>Sunshine</strong> <strong>Coast</strong><br />

economy.”<br />

“Increased travel requirements for staff and patients<br />

will have a positive benefit on the hospitality<br />

industry.”<br />

“An increase in home buyers and renters to the<br />

<strong>Sunshine</strong> <strong>Coast</strong>.”<br />

www.boardroombusiness.com.au Page 8


QUESTION SEVEN<br />

FOCUS AREA OCEANSIDE KAWANA HEALTH PRECINCT<br />

If your business is affected by the health sector, what anticipated<br />

disadvantages will the new Oceanside Kawana Health Precinct have on<br />

your business?<br />

“The Local and State Governments need to do regular<br />

information campaigns to explain the impact and uplift<br />

the completion of the Regional Hospital will have<br />

on the <strong>Sunshine</strong> <strong>Coast</strong> economy. We fear that there<br />

will be a shortage of skilled labour and supply of materials<br />

which will in turn create a rapid increase in development<br />

and Construction costs. More awareness of<br />

this should be a priority.”<br />

“Traffic and parking issues.”<br />

“Too many government agencies in the mix competing<br />

against small business.”<br />

“Too many government agencies in the mix competing<br />

against small business.”<br />

“Depends on what happens to demand for Nambour<br />

Hospital services.”<br />

QUESTION EIGHT<br />

“It will bring in construction workers from outside the<br />

SC region and increase competition for local workers.”<br />

“Loss of tenants from my commercial property. Currently<br />

rent to medical tenants in Noosa area who will<br />

probably relocate to Kawana Health Campus. I see a<br />

lot of medical businesses doing this and I expect there<br />

to be a glut of commercial real estate on the coast<br />

when the health campus absorbs all the allied and<br />

medical type businesses into their premises.”<br />

“Possible shortage of skilled tradesmen during Regional<br />

hospital peak construction period. Higher cost of<br />

labour and material supplies.”<br />

“We have several customers who visit our store when<br />

loved ones or themselves are receiving treatment<br />

or attending appointments at the Nambour General<br />

hospital - I dare say that will reduce significantly<br />

when the hospital opens in Kawana.”<br />

FOCUS AREA OCEANSIDE KAWANA HEALTH PRECINCT<br />

What actions are you taking in your business to maximise opportunities<br />

from the new Oceanside Kawana Health Precinct?<br />

More than one response could be selected.<br />

Respondents %<br />

I am not taking any actions 164 44%<br />

I only see a small flow on effect as I am not directly affected by the health industry<br />

so it is business as usual for me.<br />

133 36%<br />

I have attended an information session on the new development 54 15%<br />

I am increasing my marketing and networking activities in order to capture anticipated<br />

increase in demand<br />

43 12%<br />

I am preparing to expand my products and/or services to cater for increased demand 32 9%<br />

We are tendering to be a contractor and/or supplier to the new development 22 6%<br />

TOTAL 469<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

www.boardroombusiness.com.au Page 9


QUESTION NINE<br />

In your opinion, what are the major constraints on the growth of your<br />

business? Participants could select more than one answer to this question.<br />

Respondents %<br />

Rising overheads and utility costs 212 52%<br />

Price pressure from customers 163 40%<br />

Price pressure from competitors 155 38%<br />

Taxes and Government charges 155 38%<br />

Wages 133 33%<br />

Global/national economic performance 127 31%<br />

Declining demand from customers 108 27%<br />

Declining customer base 107 26%<br />

High Australia Dollar 96 24%<br />

Declining visitor numbers 92 23%<br />

Difficulties in obtaining finance/ extending credit facilities 78 19%<br />

Licensing and regulations 72 18%<br />

Rising transport costs 70 17%<br />

Rising production costs 69 17%<br />

Problems with local or state Government planning regulations 69 17%<br />

Increasing competition from low-cost imports 61 15%<br />

Carbon Tax 57 14%<br />

Availability of skilled workers 55 14%<br />

Price pressure from suppliers 54 13%<br />

Other option 46 11%<br />

Personal/ Home pressures 43 11%<br />

Broadband and information technology access 40 10%<br />

Transport infrastructure 28 7%<br />

Environmental catastrophes (Oil slicks, hurricanes, flooding etc) 28 7%<br />

Access to training 12 3%<br />

Shortage of industrial/ commercial land 9 2%<br />

Limited supply of production materials/ product 8 2%<br />

Reduced demand for exports 7 2%<br />

TOTAL 2154<br />

Source: Boardroom <strong>Business</strong> (<strong>2013</strong>) <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> <strong>Confidence</strong> <strong>Survey</strong> (<strong>April</strong> <strong>2013</strong>)<br />

For the first time since the survey began in 2009,<br />

Global/national economic performance has not been<br />

in the top 5 of constraints on business. Wages has<br />

replaced it, making the top 5 list for the first with a<br />

third of respondents stating it was a major constraint<br />

on their business. There were also numerous mentions<br />

in Question 10 of issues around wages, particularly<br />

weekend and holiday penalty rates.<br />

Other responses included a number of comments<br />

about retail rent increases, bad weather and general<br />

lack of consumer confidence.<br />

This question is repeated each and every survey and<br />

for a comparison over time please turn to page 16.<br />

www.boardroombusiness.com.au Page 10


QUESTION TEN<br />

IMPROVEMENTS TO YOUR BUSINESS<br />

What would make a difference to the profitability or viability of your<br />

business?<br />

With almost 300 respondents to this question we received a wide variety of responses. Naturally we can’t list all<br />

of these in this one report, as many responses were quite detailed. However what we can do is share all of your<br />

responses with the various chambers of commerce, local and state government branches, and industry groups<br />

so that they can work with you on your ideas and initiatives.<br />

As you know, your responses are anonymous, therefore we appreciate your frank and forthright comments. This<br />

question we believe is an important one to continue in future surveys.<br />

Below are some selected comments left for this question:<br />

“A fair hospitality wage structure that<br />

does not penalise the business for<br />

opening on weekends.”<br />

“Better transportation connections<br />

to Brisbane and the airport by train<br />

with connections from local rail stations<br />

to the coastline centres. Similarly<br />

better transport infrastructure to<br />

local tourist centres so those without<br />

cars can visit these sites without the<br />

need to take expensive organised<br />

tours (eg Eumundi Markets, Aussie<br />

World, Big Kart etc)”<br />

“Bringing back the Overseas Tourism;<br />

Changing the public financial outlook<br />

to a positive one - here in Australia<br />

we always talking about how<br />

bad everything is, but it’s not really in<br />

comparison to the rest of the world.”<br />

“Direct assistance with annual budgeting<br />

and cash flow projections; online<br />

sales and marketing training;<br />

low cost apprenticeships.”<br />

“Inputs to come down in cost relative<br />

to output price.”<br />

“Landlords with more flexible leasing<br />

options.”<br />

“Like most business these days you<br />

are up against internet buying. I find<br />

opposition whinging about profit<br />

margin but still continue to almost<br />

give product away.”<br />

“More development in the property<br />

market, building is at an all time low<br />

and I really do not know where everyone<br />

will be living in 10 years time.”<br />

“No wage penalty rates. Surely the<br />

people working on non holidays are<br />

the ones being penalized not those<br />

being paid double time and a half to<br />

do the same job on a public holidayit’s<br />

the 21st Century, time and customs<br />

have moved on!”<br />

“My profitability is directly dependent<br />

on my own marketing and lead generation<br />

capacity. I don’t see external<br />

issues as a factor - it is my responsibility<br />

to work smarter and more efficiently,<br />

to leverage and maximise<br />

opportunities.”<br />

“More confidence in the market, although<br />

I believe the economy has<br />

turned a corner and we will see more<br />

confidence in <strong>2013</strong>!”<br />

www.boardroombusiness.com.au Page 11


ECONOMIC ANALYSIS<br />

BY JORDAN KARLOS<br />

Talking to the data<br />

Jordan Karlos<br />

Financial Markets Analyst<br />

The number of survey participants increased in <strong>April</strong>, rising 4.1% to 407 respondents<br />

adding further reliability to the trends found within the data. The industry<br />

composition of survey respondents remained relatively constant, with the only<br />

significant change being a 33% decline in the number of Financial and Insurance<br />

participation. Regional contributions were also unchanged with the most influential<br />

destinations continuing to be Maroochydore, Caloundra and Noosaville. Keep<br />

an eye on the level of participation by businesses residing in Oceanside Kawana<br />

in future surveys as the development of the health campus is likely to stimulate<br />

the local economy and foster opportunity for further business growth.<br />

<strong>Business</strong> confidence during <strong>April</strong> <strong>2013</strong> has dipped ever so slightly with 80% of<br />

<strong>Sunshine</strong> <strong>Coast</strong> businesses believing their business will perform better or stay<br />

the same in the next six months, compared to 83% in October 2012.<br />

The result however is a clear 8 percentage points higher than the results consistently<br />

recorded during 2011 and early 2012.<br />

During <strong>April</strong>, the proportion of respondents who claimed that their business<br />

performed ‘much weaker’ over the past six months than the six months which<br />

preceded it rose 2 percentage points to 14%. This sentiment reflects national<br />

business confidence surveys showed similar trends over the corresponding<br />

period.<br />

<strong>Business</strong> conditions on the <strong>Sunshine</strong> <strong>Coast</strong> appear to have weakened slightly since<br />

last October, indicated by a reduction in the number of businesses expecting profit<br />

levels and staff numbers to increase. These findings were supported by a recent<br />

AIG survey which identified that employment in the Australian manufacturing sector<br />

was at its all time low. The ever increasing burden of higher utility prices, price<br />

sensitive consumers and rising competition is likely to place additional pressure on<br />

margins and a decline in profitability (relative to the prior survey).<br />

Capital investment data suggested a more positive outlook with a 5% jump in<br />

businesses that have indicated in the survey that they will increase their spending<br />

significantly over the next 6 months.<br />

It is important to highlight that although capital investment is a key component<br />

in determining business conditions, capital expenditure is often in the pipeline<br />

for an extended period of time and does not entirely reflect current conditions.<br />

For example, an organisation replacing machinery may be required to make the<br />

purchase at a less than optimal time due to its vital importance to the firm’s ongoing<br />

operations.<br />

www.boardroombusiness.com.au Page 12


Oceanside Kawana Health Precinct<br />

It is important to note that despite not all participants expecting to benefit from the development of the<br />

Oceanside Kawana Health Precinct, the rise in economic activity during the construction phase of development,<br />

increased demand for goods and services from additional patients (10K more every year of whom would have<br />

previously travelled to Brisbane for treatment) and the increase in the number of professionals residing in the<br />

region will derive benefits to the broader economy and wider industries as every dollar spent has a multiplier<br />

effect.<br />

Tourism<br />

<strong>Survey</strong> participants identified that they desire additional tourists through the region to add to economic activity.<br />

According to Tourism Queensland, visitors spent a combined total of $6.7m each day during 2012 on the<br />

<strong>Sunshine</strong> <strong>Coast</strong>. This amounted to 11.4% of all daily visitor expenditure in Queensland. In addition the strong<br />

growth from Chinese visitors is positive for the region as the number of Chinese citizens moving into the ‘middle<br />

income class’ looking to travel is set to continue to grow and could derive significant benefits to the <strong>Sunshine</strong><br />

<strong>Coast</strong> region going forward.<br />

Aussie Dollar woes<br />

The <strong>Sunshine</strong> <strong>Coast</strong> economy derives a large component of its Gross Regional Product (GRP) from AUD sensitive<br />

industries. As a consequence, one of the largest burdens to business growth identified in the survey was<br />

the stubbornly high exchange rate. According to a report by Regional Development Australia the <strong>Sunshine</strong><br />

<strong>Coast</strong> economy consisted of the following AUD sensitive industries with the following GRP contributions in the<br />

2010/2011FY. Tourism (17%), Retail Trade (8%), Education (7%), Manufacturing (7%) and Accommodation/ Restaurants<br />

(2%). These five industries accounted for 41% of the <strong>Sunshine</strong> <strong>Coast</strong>’s GRP. The high AUD has persisted<br />

for an extended period of time as relatively high domestic yields and Australia’s AAA credit rating ensured capital<br />

inflow kept pouring in from foreign investors and Central Banks alike. As highlighted below the AUD has<br />

remained above parity for 11 consecutive months and has been in a steady uptrend for even longer.<br />

Source: Reuters<br />

www.boardroombusiness.com.au Page 13


However, recent developments at home and abroad are tipping the scales back to a more even keel which<br />

could ease the pain for AUD sensitive industries in the medium term as the AUD softens. The factors contributing<br />

to this belief are listed below:<br />

• Australian economic data and business confidence levels have continued to deteriorate in<br />

recent times which are likely to lead to additional interest rate cuts. When interest rate<br />

cuts occur foreign investors re-allocate their capital elsewhere placing downward pressure<br />

on AUD.<br />

• The RBA has identified the importance for non-mining investment to pick up in order to<br />

absorb the slack left from the transition from the investment phase in the mining sector.<br />

This will likely result in additional interest rate cuts.<br />

• The weakness in the USD. Until recently the US was under pressure as investors were concerned<br />

about the pending Federal election, Fiscal Cliff, Debt Ceiling, deteriorating economic<br />

data and QE program. Despite numerous headwinds persisting for the US economy the<br />

immediate threat has dissipated and the outlook has improved causing a strengthening in<br />

the USD and a subsequent decline in the AUD.<br />

• Structural reform in China. Commodity prices peaked in 2011 on the back of unprecedented<br />

demand from China. The demand for Australian resources caused a sharp increase in<br />

the demand for AUD. China’s transition from an investment to consumption driven economy<br />

has resulted in less AUD demand.<br />

• Deteriorating Australian Balance Sheet. Last months announcement of a $12b shortfall in<br />

the Federal Budget was blamed on declining resource prices. Rising debt levels may see<br />

the state of the Australian balance sheet catch the eye of credit rating agencies that fear<br />

it will become a systemic problem. If the Australian credit rating was cut from AAA the<br />

recent Central Bank accumulation of AUD could reverse as the perceived risks increase significantly,<br />

placing downward pressure on the currency.<br />

A strengthening USD, deteriorating Australian balance sheet, declining demand for Australian resources, reduced<br />

demand from central banks, and additional cash rate cuts priced into the market could see the value of the Australian<br />

dollar lower and provide some relief to AUD sensitive industries over the medium term.<br />

These recent developments may be the light at the end of the tunnel businesses around the country have been<br />

looking for. However, operators should be careful that the light down the tunnel is not an oncoming train. A<br />

more competitive Australia with longer term better economic prospects would likely see an increase in interest<br />

rates. Now is an opportunistic time to take advantage of the historically low interest rates to avoid swapping<br />

one problem for another.<br />

www.boardroombusiness.com.au Page 14


Oceanside Kawana Health Precinct<br />

The Oceanside Kawana Health Precinct, including the <strong>Sunshine</strong> <strong>Coast</strong> University Hospital, is the largest infrastructure<br />

project ever undertaken on the <strong>Sunshine</strong> <strong>Coast</strong>. It will cover 100 hectares and includes:<br />

• <strong>Sunshine</strong> <strong>Coast</strong> University Hospital – 700+ beds when fully operational.<br />

• <strong>Sunshine</strong> <strong>Coast</strong> University Private Hospital – operated by Ramsay Health Care.<br />

• Skills and Academic Research Centre.<br />

• The Kawana Health Innovation Park.<br />

• Retail, entertainment and short term accommodation.<br />

A summary of key program dates for the hospital are as follows:<br />

• Design Development from September 2012 through to the end of <strong>2013</strong><br />

• Site establishment and bulk earthworks from October 2012<br />

• First multi-level car park from February <strong>2013</strong> to December <strong>2013</strong><br />

• Main hospital structure from mid <strong>2013</strong> to end 2014<br />

• Fit out and finishes from <strong>April</strong> 2014<br />

• Project Completion (Stage 1) - late 2016<br />

It is estimated that 10,000 patients each year will no longer have to travel to Brisbane once the <strong>Sunshine</strong> <strong>Coast</strong><br />

University Hospital is fully operational.<br />

Below are hyperlinks to some online resources for further information on the project and how your business<br />

could possibly be involved.<br />

<strong>Sunshine</strong> <strong>Coast</strong> Council <strong>Business</strong><br />

Queensland Health<br />

Oceanside Kawana<br />

To speak directly with someone at <strong>Sunshine</strong> <strong>Coast</strong> Council’s Economic Development Branch:<br />

Email: economicdevelopment@sunshinecoast.qld.gov.au<br />

Phone: 07 5475 7272<br />

www.boardroombusiness.com.au Page 15


BUSINESS CONSTRAINS<br />

Top 5 Major <strong>Business</strong> Constraints trending over time<br />

In your opinion, what are the major constraints on the growth of your<br />

business?<br />

This is the twelfth survey conducted since 2009. Listed below are the top 5 constraints on business since 2009.<br />

<strong>April</strong> 13 October 12 March 12 Sept 11 <strong>April</strong> 11<br />

1. Rising overheads<br />

and utility costs<br />

Price pressure from<br />

customers<br />

Rising overheads<br />

and utility costs<br />

Rising overheads<br />

and utility costs<br />

Rising overheads<br />

and utility costs<br />

2. Price pressure<br />

from customers<br />

Rising overheads<br />

and utility costs<br />

Price pressure from<br />

customers<br />

Global / national<br />

economic performance<br />

Price pressure from<br />

customers<br />

3. Price pressure<br />

from competitors<br />

Price pressure from<br />

competitors<br />

Price pressure from<br />

competitors<br />

Price pressure from<br />

customers<br />

Price pressure from<br />

competitors<br />

4. Taxes and Government<br />

charges<br />

Global / national<br />

economic performance<br />

Declining customer<br />

base<br />

Price pressure from<br />

competitors<br />

Global / national<br />

economic performance<br />

5. Wages Taxes and Government<br />

charges<br />

Global / national<br />

economic performance<br />

Declining customer<br />

base<br />

Rising transport<br />

costs<br />

Sept 10 Apr 10 Jan 10 Sept 09 June 09<br />

1. Rising overheads<br />

and utility costs<br />

Global / national<br />

economic performance<br />

Rising overheads<br />

and utility costs<br />

Price pressure from<br />

customers<br />

Global / national<br />

economic performance<br />

2. Global / national<br />

economic performance<br />

Rising overheads<br />

and utility costs<br />

Price pressure from<br />

competitors<br />

Rising overheads<br />

and utility costs<br />

Rising overheads<br />

and utility costs<br />

3. Price pressure<br />

from customers<br />

Declining visitor<br />

numbers<br />

Price pressure from<br />

customers<br />

Price pressure from<br />

competitors<br />

Price pressure from<br />

customers<br />

4. Price pressure<br />

from competitors<br />

Price pressure from<br />

competitors<br />

Global / national<br />

economic performancmance<br />

Global / national<br />

economic perfor-<br />

Price pressure from<br />

competitors<br />

5. Problems with<br />

local or state Government<br />

planning<br />

regulations<br />

Price pressure from<br />

customers<br />

Problems with local<br />

or state Government<br />

planning<br />

regulations<br />

Declining demand<br />

from customers<br />

Declining customer<br />

base<br />

www.boardroombusiness.com.au Page 16


ACKNOWLEDGEMENTS<br />

We wish to thank the many Chambers of Commerce, business and industry<br />

groups who encouraged their members to complete this survey.<br />

Their contribution is always appreciated.<br />

We also wish to thank the following supporters who assist us with the survey:<br />

• <strong>Sunshine</strong> <strong>Coast</strong> Council<br />

• Suncorp Bank<br />

• Regional Development Australia,<br />

<strong>Sunshine</strong> <strong>Coast</strong><br />

• <strong>Sunshine</strong> <strong>Coast</strong> Chambers of Commerce<br />

Alliance<br />

• <strong>Sunshine</strong> <strong>Coast</strong> Destinations Ltd<br />

• Caloundra Chamber of Commerce<br />

• Coolum <strong>Business</strong> and Tourism<br />

• Cooroy Chamber of Commerce<br />

• Eumundi Chamber of Commerce<br />

• Housing Industry Association Ltd<br />

• Kawana Waters Chamber of Commerce<br />

• Maleny Commerce<br />

• Maroochydore Chamber of Commerce<br />

• Nambour Alliance<br />

• Noosa Chamber of Commerce<br />

• The Original Eumundi Markets<br />

• Peregian Beach <strong>Business</strong> Association<br />

• Department of State Development,<br />

Infrastructure and Planning<br />

• <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> Women’s<br />

Network<br />

• <strong>Sunshine</strong> <strong>Coast</strong> Daily<br />

• <strong>Sunshine</strong> <strong>Coast</strong> Innovation Centre<br />

• <strong>Sunshine</strong> <strong>Coast</strong> Institute of TAFE<br />

• Tourism Noosa<br />

• Urban Development Institute of Australia<br />

• Yandina Chamber of Commerce<br />

• Accounting North<br />

• Mooloolaba <strong>Business</strong> & Tourism<br />

If you are involved in a business organisation on the <strong>Sunshine</strong> <strong>Coast</strong>, and interested in supporting the survey,<br />

we would like to hear from you.<br />

CONTACT US:<br />

info@boardroombusiness.com.au<br />

www.boardroombusiness.com.au<br />

Copyright © <strong>2013</strong>. All Rights Reserved<br />

Legal Disclaimer<br />

This report provides information designed to help users cope with their own business, financial, legal and other needs. This information is not the same<br />

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<br />

an expert, including but not limited to an accountant, financial services consultant, lawyer or other professional as appropriate. Nothing contained in this<br />

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<br />

advice from their own financial, legal or other counsel. The information contained in this report is intended for educational, background and informational<br />

purposes only.<br />

www.boardroombusiness.com.au Page 17


<strong>Sunshine</strong> <strong>Coast</strong><br />

BUSINESS CONFIDENCE SURVEY<br />

This report has been produced by Boardroom <strong>Business</strong> in partnership<br />

with the <strong>Sunshine</strong> <strong>Coast</strong> <strong>Business</strong> Community.<br />

Boardroom<strong>Business</strong><br />

WANT TO FIND OUT MORE?<br />

If you would like to get involved in our confidence survey<br />

you can subscribe online to receive the alerts and be<br />

amongst the first to download the results.<br />

You may also like to contribute your comments on our<br />

Boardroom Blog and tell us what you think about the survey<br />

and/or general business confidence in our region.<br />

Go to www.boardroombusiness.com.au

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!