GRIFFITH BUSINESS SURVEY 2019 Results collected and analysed by Griffith City Council
Supported by the Griffith Business Chamber
THANK YOU FOR PARTICIPATING
Thank you to all the Griffith businesses that completed the 2019 Business Survey. We received over 200 responses and we were able to collect invaluable information to further the investment and business development in Griffith from 1 October 2019 - 31 December 2019. The purpose of this Survey was to collect data that will help determine how we can support local businesses in the future and analyse the current business climate. The questions were based on 2019 Financial Year performance unless specified otherwise. This report will inform the development of strategies and long term plans as well as supporting grant applications for our region, information for major infrastructure projects and strategic and long term decisions. The findings are a valuable tool for local businesses to determine opportunities within their industry and provide key information to attract investors.
For information on any aspect of investing or doing business in Griffith City please contact: Karly Sivewright, Economic Development Coordinator T +61 02 6962 8100 M +61 417 368 169 E Karly.Sivewright@griffith.nsw.gov.au
CONTENT Summary of results
4
Industries that completed the survey
4
Business operating years
5
Training requested
6
Business performance
6
Business strengths
7
Economic impacts
8
Business experiences
9
Agriculture Industry
10
Construction Industry
12
Manufacturing Industry
13
Retail Industry
14
Wrap up
15
Pg. 3
WE BUILD
SUMMARY OF RESULTS Page 4 to page 9 of this report is a summary of the findings of the 203 businesses that completed the survey as a whole. Towards the end of the report the four largest industries; agriculture, manufacturing, construction and retail will have their own summary.
Industries that completed the survey Industry
Count Industry
Count
Agriculture
23
Wholesale Trade
4
Administration & Support
2
Education & Training
5
Accommodation & Hospitality
10
Professional, Scientific & Technical Services
15
Construction & Development
39
Financial & Insurance Services
10
Recreational Services
3
Information Technology
4
Fitness & Wellbeing
7
Manufacturing
17
Medical & Social Services
14
Winery
2
Hair & Beauty
10
Utilities & Waste services
4
Fashion Retail
3
Mechanical & Automotive
12
Other Retail
40
Transport & Warehousing
1
11% 20 + employees
42% Less than 5 employees
21% 6-20 employees
Number of Employees
26% Non-employing
142 Businesses hire trainees and apprentices
Pg. 4
17% work from home
Business Premises
10% mobile business
2% online only
71% bricks & mortar premises
102 Businesses take
on work experience and work placement students
Business operating years Years operating
Count
1 year or less
19
2-5 years
37
6-15 years
51
16-30 years
47
30 plus years
47
72 Businesses
90% of businesses
Griffith businesses
102 Businesses have
sell goods over the internet
export to over
surveyed said they cannot operate their business without the internet
60
written a business plan
different countries
32% don’t need a website
Businesses that have a website 8% don’t know how to create one
60% have a website
Pg. 5
Training Requested Marketing Business Planning Leadership/Management Social Media Future Planning Sustainable Practises Hiring/retaining the right sta Succession Planning Accounting/BAS Grant Writing Customer Service Automation/Technology 0
10
20
30
40
50
60
70
80
Are businesses happy with their performance? 2% looking to exit my business
21.9% not my strongest years
0
6.5% rather not say 20
Pg. 6
24.9% extremely happy
44.8% happy
40
60
80
100
Business Strengths 57%
Work/Life Balance 68%
Sta Morale
55%
Sta turnover Location
64% 59%
Family Friendly
68%
Innovation & Technology Uniqueness
64%
Customer Service
48%
Community Involvement
58%
0
20
40
weakness
60
80
strength
powerful advantage
6% International 16% Air
Transport to customers
8% Rail
103
Businesses are planning to expand by 2025 70% Road Freight
Business confidence in Griffith is reasonably high, with 70% of businesses happy or extremely happy with how their business is performing. Griffith is the headquarters to some of Australia’s most innovative and sustainable companies, with 87% of Griffith businesses believing that innovation and technology is a key strength in their business. Almost all the Griffith businesses feel that customer service is their biggest strength giving them a competitive advantage. Pg. 7
100
Opinion of the Griffith Economy Growing 86
0
50
Slowing down 70
100
Stagnant 41
150
200
Economic Impacts Rising cost of water Rising cost of power Cost of Funding/Credit Slow paying customers Fill sta positions Moderate Impact
Climate Change Council Regulation
High Impact
Online Retailers Internet Connectivity Increased Competition
0
Pg. 8
50
100
150
Business Experiences Sales Yield/Volume Cost of Goods Cost of Rent ProďŹ tability Size of Workforce Cost of Wages Sta Training Capital Expenditure Cost of Lending -150
-100
High Decrease
-50
0
0
Moderate Decrease
50
Moderate Increase
100
150
High Increase
Preferred methods of communication 2% newspaper
8% mail
36% email newsletter
25% personal emails
18% Facebook
11% info sessions & workshops
Pg. 9
WE BUILD
AGRICULTURAL INDUSTRY Agricultural crops grown Crop grown
No. of growers
Crop grown
surveyed
No. of growers surveyed
Broadacre
7
Other Fruit
2
Barley
5
Maize
3
Cereal Crop
10
Other Cereal
3
Cotton
7
Rice
5
Canola
3
Wool
2
Citrus
6
Wheat
7
Grapes
11
87% of Agricultural businesses depend on the internet to run their business and farming equipment.
85% of Agricultural businesses reported that the
rising cost of water has had a high impact on their business. The remainder are dry area farmers that rely heavily on rainfall.
100% of Agricultural businesses
surveyed have a business plan in place.
In order to increase the yield during the drought over the past two years, Griffith Farmers have had to increase their water usage. Agricultural businesses are further implementing sustainable farming practises to offset the rising cost of water and maintain their profit margins as depicted in the following business experiences graph.
Pg. 10
Business Experiences Yield
Sales
Profitability
Capital Expenditure
Water -100
-80
-60
-40
High Decrease
32% Landfill
82% rely on road transport to reach customers
-20
0
0
Moderate Decrease
17% Zero Waste
20
Moderate Increase
32% Landfill
Agricultural Waste 13% Livestock Feed 39% Recycling
40
60
80
100
High Increase
17% Zero Waste
32% Landfill
74% impacted by the rising cost of transport 39% Recycling
Pg. 11
WE BUILD
CONSTRUCTION INDUSTRY 17% Zero Waste
32% Landfill
17% Zero Waste
17% Zero Waste
32% Landfill
59% planning to expand over the next 5 years
74% happy with their performance 39% Recycling
32% Landfill
44% hire apprentices & trainees 39% Recycling
39% Recycling
Business Experiences Sales Profitability Cost of Wages Cost of Rent Cost of Goods Capital Expenditure Staff Training -35
-30
-25
-20
-15
High Decrease
-10
-5
0
0
Moderate Decrease
5
10
Moderate Increase
15
20
25
30
35
High Increase
half of the construction
businesses have a business plan
1/2 of the construction businesses are mobile or work from home
Most construction businesses surveyed are either sole traders or have less then 5 employees Pg. 12
Chart Title
31% industrial
27% residential
Service Sector 42% commerical
WE BUILD
MANUFACTURING INDUSTRY 53% of manufacturing
63% are happy with how
businesses sell goods over the internet
their business is performing
63% of manufacturing
Most manufacturing businesses are looking to expand by 2025
businesses have been operating for over 15 years Sales Profitability Cost of Rent Cost of Goods Capital Expenditure Staff Training Cost of Lending -20
-15
-10
-5
High Decrease
0
0
Moderate Decrease
5
Moderate Increase
10
15
High Increase
Economic Impacts Rising cost of power Cost of Funding/Credit
No Impact
Slow paying customers Moderate Impact
Fill staff positions High Impact
Climate Change
Council Regulation Cost of Transport
0
5
10
15
20
20
47%
WE BUILD
RETAIL INDUSTRY 81% of retail businesses
86% of retail
have a bricks & mortar premises
businesses have a website
63% of retailers
42% that completed
surveyed sell goods over the internet
the survey have shopfronts located in the Griffith CBD
Work/Life Balance
Staff turnover
Location Innovation & Technology Uniqueness
Customer Service Staff Morale Family Friendly
0
10
20
12% high increase
14% very happy
35% moderate decrease
Count of Business Performance
Pg. 14
14% 12%
42%
12% 5% 30%
2%
2% looking to exit
42% Happy
12% rather not say
50 weakness
5% high decrease
2019 Profitability
Profitability
40
strength
powerful advantage
47% moderate increase
30
business performance satisfaction 30% not our strongest years
63% of retail businesses
31 of the retailers surveyed
7 brand new retail
26 of the retail businesses
say they have been impacted by online retail competition
businesses completed the survey
have experienced a rent increase
said they were looking to expand in 5 yrs
WRAP UP It is important to monitor Griffith’s overall economic health via our local businesses confidence and performance. This report indicates how Griffith businesses are performing as a whole as well as our largest industries. Although businesses have been impacted by the rising cost of power, water, slow paying customers and increased competition, almost three quarters of them are happy with their performance and looking to expand over the next 5 years. Business confidence drives business growth and investment, supports employment opportunities and attracts people to the region. We hope that local businesses and investors find this information useful for decision making and future growth. If any further information is required, please don’t hesitate to contact Griffith City Council’s Economic Development department.
Pg. 15