BUSINESS SURVEY 2025
Business conditions remained stable in 2024–25, with most indices unchanged and 78% of businesses maintaining or improving their overall performance amid ongoing cost and staffing pressures.
Rising costs remain a key concern, with 84% of businesses reporting increases in fuel, freight, insurance, and compliance expenses.
Staffing challenges persist, particularly in agriculture, health, and service industries, where difficulty attracting and retaining skilled workers continues to limit growth.
Business sentiment for the year ahead is cautiously optimistic, with forecasts indicating improvements in revenue, staffing levels, and customer demand.
The index score is developed from qualitative survey responses, producing a value between 1 and 100. As a guide:
» below 50 indicates weaker performance
» between 50 and 55 indicates neutral performance
» above 55 indicates stronger performance
OVERALL PERFORMANCE
Change in overall performance over the past 12 months.
» Overall business performance held steady, with the index remaining at 63 and within the stronger range.
» Feedback indicates stronger performance was supported by solid trading conditions, infrastructure upgrades, and improved business systems.
» Among businesses reporting weaker performance, common challenges included water shortages, coal price fluctuations, staffing issues, and rising operating costs.
» Performance is expected to remain stable in 2025-26, with no change forecast in the index.
“Everything is getting more expensive — freight,
insurance, even IT subscriptions. You have to work smarter just to stay in the same spot.
“
REVENUE
Change in total sales revenue over the past 12 months.
» The revenue index remained stable, reflecting a balance between gains from customer activity and challenges such as market fluctuations, seasonal conditions, and workforce limitations.
» Looking ahead to 2026, business optimism is encouraging, with 44% of businesses anticipating revenue growth.
CUSTOMERS
Change in customer demand levels over the past 12 months.
» The customer index held steady at 66, with results reflecting stable demand across the region.
» Feedback suggests demand was supported by regional population growth, returning clients, and stronger brand awareness.
» Looking to 2026, confidence is building, with 56% of businesses expecting customer demand to rise and only 8% forecasting a drop.
STAFFING
Change in staffing numbers and hours over the past 12 months.
» The staffing index dipped one point to 55, reflecting largely unchanged workforce conditions across the region.
» While most businesses maintained staffing levels, qualitative feedback highlights continued difficulty sourcing and retaining skilled workers, particularly in agriculture, health, and service industries.
» Looking to 2026, the index is expected to rise to 59, pointing to a gradual improvement in hiring conditions across key industries.
COSTS
Change in overall business costs over the past 12 months.
» The cost index dropped by two points to 90 but remains significantly high.
» Most businesses (85%) continue to report rising costs, with 28% experiencing significant increases, particularly in fuel, freight, insurance, and utilities.
» Businesses expect the index to drop slightly to 89 in 2025-26.
CAPITAL INVESTMENT
Change in capital investment levels over the past 12 months.
» Capital investment remains strong, though down from last year’s peak of 75.
» Over half of businesses (55%) reported increased investment in equipment, facilities, or systems.
» The index is expected to fall to 65 in 2025-26, suggesting a more conservative investment outlook.
CONSTRAINTS TO GROWTH
» Constraints to growth remain varied, with the most common challenges being demand levels (39%),
and utility costs (35%), and access to suitably qualified labour (35%).
» Notably, labour constraints eased compared to 2024 (down from 48%), while concern over insurance premiums rose significantly, from 19% to 28%.
The Central Highlands Business Survey is conducted by Central Highlands Development Corporation (CHDC) and serves as a key barometer of local business conditions.
The 2025 survey ran from 1 May to 8 June and received responses from 181 businesses, representing five percent of the region’s business community.
Congratulations to Revamp Studio, Springsure, the winner of two tickets to the Central Highlands Business Excellence Awards Gala Dinner for completing the survey.
BUSINESS INSIGHTS
More of our invoices went to Pty Ltds than private owners ... the public is hurting, but business is booming.”
Staffing remains the biggest challenge as agriculture can never compete with mining wages.”
4% each. Other 28%.
Cost of living, freight charges, and no one wants to work — it’s all making it hard to stay viable.”
The town will not continue to grow if we do not fix the accommodation crisis we have.”
We anticipate our customer and retail business will increase… we love to support the community and in return, they support us.”
I hope increased demand, but in reality I estimate increased personal persistence will drive our business.”
This year, increased word of mouth and stronger customer relationships have helped boost our growth.” Accommodation, Construction,
Lack of water availability will reduce our plantings and income — we will be reducing our casual staff.”
High costs from every angle: rates, electricity, insurance, gas. It’s relentless.”
The information has been sourced and compiled by
and factual at the time of release. CHDC takes