CENTRAL HIGHLANDS BUSINESS SURVEY 2024
The survey results indicate a generally positive trend in business performance, despite some mixed indicators. 78% of businesses reported maintaining or improving their overall performance over the past year.
Business costs remain a major concern, with 2023’s high index carrying over into this year’s results. Four in five businesses saw increased costs, and nearly a quarter experienced a significant rise.
While the staffing index has improved, recruiting and retaining qualified workers remains a critical constraint, impacting daily operations and long-term growth. Qualitative feedback confirms that many businesses still face substantial shortages.
Despite these challenges, businesses are optimistic about the year ahead. Projected increases in key indices, such as a 10-point rise in the revenue index and a 9-point increase in the customer index, reflect a positive outlook.
The index score is developed from qualitative survey answers, resulting in a value between 1 and 100. As a guide, a score:
» below 50 indicates weaker performance,
» between 50 and 55 indicates neutral performance, and
» above 55 indicates stronger performance.
OVERALL PERFORMANCE
Change in overall performance over the past 12 months.
» Despite a one-point drop in the overall performance index, a score of 63 reflects favourable results.
» 78% of businesses performed the same or stronger compared to the previous 12 months.
» Looking ahead, businesses are optimistic, with the index projected to rise by five points to 68.
REVENUE
Change in total sales revenue over the past 12 months.
» The revenue index fell by three points, indicating a weakening in total sales revenue from last year. However, a score of 61 remains within the stronger range and exceeds pre-COVID levels.
» Confidence for the upcoming year is positive, with a projected 10-point uptick in the index, signalling growing optimism.
CUSTOMERS
Change in customer demand levels over the past 12 months.
» The customer index rose by one point to 66, indicating a slight strengthening in demand.
» This increase is supported by 52% of businesses noting improvements in customer metrics.
» Businesses are optimistic about the 2024/2025 period, anticipating a 9-point rise in the index.
STAFFING
Change in staffing numbers and hours over the past 12 months.
» The staffing index rose nine points to 56. After four years of weaker conditions, it has moved just above neutral, which is encouraging.
» 29% of businesses saw staffing increases, up from 16% last year.
» Despite this, qualitative feedback suggests that staffing remains a challenge for many businesses.
» Confidence is strong for the next 12 months, with a 10-point rise projected.
COSTS
Change in overall business costs over the past 12 months.
» The cost index dropped by one point to 92 but remains significantly high.
» Four in five businesses experienced an increase in costs over the past year, with nearly a quarter (24%) reporting that the increase was significant.
» Businesses are hoping for a reprieve over the next year, with the index forecast to drop by five points to 87.
CAPITAL INVESTMENT
Change in capital investment levels over the past 12 months.
» The capital investment index rose six points to 75, indicating increased expenditure. This marks the highest level of investment in the past four years.
» Over half (55%) of businesses reported higher spending on long-term assets such as buildings, plant, and equipment.
» The index is expected to drop by six points over the next 12 months, but a value of 69 still indicates solid investment levels.
CONSTRAINTS TO GROWTH
» Almost half (48%) of businesses listed recruiting and retaining suitably qualified labour as a constraint to growth. The tight labour market not only has implications for daily operations but also poses a substantial barrier to longterm growth.
» Although the level of demand and economic activity as a constraint has decreased from last year, it remains the second largest concern, alongside overhead and utility costs.
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The Central Highlands Business Survey is conducted by Central Highlands Development Corporation (CHDC) and serves as a key barometer of local business conditions.
During the survey period from 1 May to 7 June, 177 businesses responded, representing 5% of the region's business community. Congratulations to Deepfeet Massage Therapy Emerald, the winner of a professional business photo shoot for completing the survey.
INDUSTRY SECTOR BUSINESS SIZE
FROM FEEDBACK TO RESULTS
Labour shortages were highlighted as a critical issue in the 2023 Central Highlands Business Survey. In response, CHDC implemented several initiatives to support businesses, attract workers, and address key barriers such as housing and childcare.
Gemfields
In April 2024, CHDC launched the Central Highlands Workforce Development and Accommodation Strategy, offering innovative solutions to recruitment attraction. View the strategy and action updates at chdc.com.au
Workforce development was the focus of a working lunch in April, where industry experts shared the latest research and potential solutions to staffing challenges.
Starting in October, CHDC will launch the Smart Move regional recruitment campaign. Featuring local workers, advertising will run on digital, radio, and outdoor media across Queensland and New South Wales.
These activities are complemented by Jobs Hub Central Queensland Highlands, our free online jobs board for employers to list vacancies, search for talent, and manage job applications. Visit jobshubcqh.com.au.
CENTRAL HIGHLANDS DEVELOPMENT CORPORATION 76 Egerton Street Emerald Q 4720 T +61 7 4982 4386 E enquiries@chdc.com.au W chdc.com.au