Central Highlands Business Survey 2021 June 2021
Key Findings The index score is developed by assigning value to the qualitative survey answers, creating a rating between 1 and 100. As a guide, 50 would indicate the performance was neutral, less than 50 weaker and above 50 stronger.
1 While overall performance and revenue index scores have returned to pre COVID-19 levels, one in three businesses (32%) are still experiencing a negative impact from the global pandemic. 2 Looking to the next 12 months, there is a good level of confidence, with 86% of businesses anticipating their overall performance will increase (42%) or at least remain the same (44%). Businesses are, however, still showing caution, with 63% placing capital investment on hold for the coming year. 3 Australia’s labour shortage is being felt in the Central Highlands, with four in five businesses (84%) having difficulty finding suitable staff. Not only does this impede on businesses’ ability to grow, it also puts mounting pressure on existing staff.
Overall Performance + The overall performance index score has returned to its pre COVID-19 level. Almost a third of businesses (32%) performed stronger, with the ‘health care and social assistance’ sector reporting the greatest increase. 27% of businesses performed weaker, with the ‘education and training’ and ‘construction’ sectors reporting the greatest decrease. + Looking to the next 12 months, businesses are confident, with 86% anticipating their overall performance will increase (42%) or at least remain the same (44%). + This confidence extends to the regional economy, with 90% of businesses anticipating it will perform stronger (40%) or about the same (50%) over the coming year.
Current (June 2021) Forecast (June 2022) Much stronger
55 65
9%
23% 37%
5%
Somewhat stronger
18%
41% 44%
About the same
9% 9%
Somewhat weaker
5%
Much weaker
Revenue + The revenue index score bounced 21 points from the significant low experienced last year. Despite this index increase, two in five businesses (39%) experienced a decrease in revenue over the past 12 months. The ‘education and training’ and ‘mining’ sectors reported the greatest decrease. + Business optimism is evident, with 83% anticipating revenue would increase (45%) or remain the same (38%) over the next 12 months.
80 (index score) 60 40 20 0 Mar ’20
Jul ’20
Jun ’21
2022 (forecast)
1