34% 29% 37% Revenue ण While the revenue index increased by one point, 37% of businesses experienced a decrease in revenue over the past 12 months, impacted by government restrictions and mandates, labour shortages, supply chain disruptions and rising costs. ण The ‘food and beverage services’ and ‘arts and recreation’ sectors reported the greatest decrease while the ‘accommodation’ and ‘mining’ sectors reported the greatest increase. ण Business optimism is evident with almost half (49%) anticipating revenue will increase in the next 12 months. Staffing ण Businesses are continuing to struggle with skill and labour shortages, which saw the staffing index drop two points to 46. 29% of businesses experienced a decrease in staff. ण The ‘food and beverage services’ and ‘accommodation’ sectors reported the greatest decrease. These sectors have struggled since COVID-19 and the withdrawal of temporary visa-holders, who make up a high proportion of the workforce. ण Labour shortages have been exacerbated by the lack of affordable housing. ण The forecast is positive, with 63% of businesses expecting staffing levels to remain stable and a further 23% anticipating levels to increase.(JuneForecast(JuneLast(JuneCurrent(JuneForecast(JuneLast(JuneCurrent2022)Year2021)2023)2022)Year2021)2023) 56664851 16% 55% 29% 34% 24% 49% 23% 27% 41% 30% 63% 39% 35% 21% 14% Increase No change Decrease 52 1 46 2 Consistency with the supply of goods has been my biggest hurdle.” We can’t compete with the large organisations thus lose staff or can’t recruit them.” I started my business during the pandemic and it has become successful very quickly.” Our business has found it hard to perform as its best level with the lack of people wanting to work.” ““ ““ 806040200 (indexMarscore)’20 Jun ’21Jul ’20 Jun ’22 2023 (forecast) 806040200 (indexMarscore)’20 Jun ’21Jul ’20 Jun ’22 2023 (forecast) Increase No change Decrease
Our business has performed well however major increases in running expenses such as fuel, steel etc will start to impact our net profits.” Business will be very tough over the next 12 months with the current and predicted increased running costs.” “ “ Constraints to Growth ण Labour shortages and limited economic activity continue to be the top constraints to business growth. 35% of businesses (up from 27% in 2021) reported the ‘level of overhead and utility costs’ as a major constraint. I can’t take on any more clients because I don’t want a reputation for not being able to complete a job due to insufficient staff.” 41“% Recruiting & retaining suitably qualified labour June 2021: 50% 40% Level of economicdemand/activity June 2021: 44% 35% Level of overhead and utility costs June 2021: 27% 26% Direct and indirect wage costs June 2021: 27% Costs ण The cost of doing business is at an all-time high, with four in five businesses experiencing an increase in the past 12 months. Almost a third (32%) of businesses reported that the increase was significant. ण The index rose 10 points from last year and a staggering 38 points from March 2020. ण Rising input costs and operational expenses such as fuel, electricity and rent are a major concern for business owners. ण The ‘food and beverage services’ and ‘transport, postal and warehousing’ sectors reported the greatest increase. ण Businesses are not envisaging much of a reprieve over the coming 12 months, with the forecast index falling by only two points. (JuneForecast(JuneLast(JuneCurrent2022)Year2021)2023) 8981 84% 13% 66% 81% 28% 16% 6% 91 10 Increase No change Decrease 100806040200 (index score) Jun ’21Jul ’20Mar ’20 Jun ’22 2023 (forecast) 3 3 % %
COVID-19 Impact ण Almost half (46%) of local businesses are currently experiencing a negative impact from COVID-19. This is a significant increase from 32% last year (2021 survey). ण Businesses cited government restrictions and mandates, labour shortages (recruitment and absenteeism) and supply chain disruptions as the primary causes. ण The ‘food and beverage services’ and ‘health care and social assistance’ sectors reported the greatest negative impact. ण Looking to the next 12 months, a majority of businesses (64%) are optimistic that COVID-19 will have a neutral impact on their operations. About The Central Highlands Business Survey is conducted by Central Highlands Development Corporation and is a key barometer of local business conditions. 278 businesses responded during the survey period, 2 May to 3 June 2022. The survey received an increased response from the ‘retail trade’ and ‘food and beverage services’ sectors and ‘owner operator’ businesses. Congratulations to King's Coffee House, winner of the survey promotional package prize. Positive Neutral Negative Clients have been unable to attend appointments and staff have been unable to come to work due to being sick or a close contact.” It’s (COVID-19) not going to go away; we just have to adjust to it.” “ “ 15% Retail trade 14% Agriculture, forestry and fishing 9% Food and beverage services 9% Professional, scientific and technical services Industry sector Business Size Location Mar ’20* June ’21* Current 6 months from now 12 months from now 100%806040200 173251%%% 4846%%6%214732%%% 6031%% 6421%%15%9% *2021 survey results 69% Emerald 7% Springsure 6% Blackwater 4% Capella & Tieri 14% Other806040200 30% 57% 12% 1% operatorOwner Small(1-19) (20Medium–199) (200+)Large