How are companies managing in a multi-speed economy?
Managing in a multi-speed economy is the third report in an annual series and follows Managing in Uncertain Times (2010-2011) and Managing through a Downturn (2009-10).
Since the report’s inception three years ago, there have been significant swings in the business community’s mood. In 2009, there was an upbeat and positive ambiance within the business community, particularly among Australian SMEs coming out of the GFC. Business leaders held a very optimistic outlook with bullish growth expectations, even though the rest of the world was in recession and struggling with difficult economic conditions.
This positive and upbeat mood began to change last year; the 2010–11 report found companies less buoyant and more cautious in their economic and individual business outlook.
The results of this year’s report indicate a heightened sense of unease in the business community. There is a significant increase in the number of companies which expect zero growth this year and some companies are reducing staff. Further, businesses plan to increase prices this year, in reaction to ever escalating business costs.
The report indicates cracks are now appearing beneath the surface of Australia’s multi-speed economy, which, to date, has been largely free of the worst of the global economy’s turmoil.
The report's key findings include:
- 26% of surveyed companies expect difficult conditions in 2011–12, up 6% on last year.
- Only 15% of Australian companies are very optimistic about their growth expectations, falling from 39%.
- 14% of companies expect no growth at all this financial year, up 6% from last year.
- 18% of surveyed companies expect only 5% or less growth, up 10% on last year.
- 25% of surveyed companies feel the economy is slowing –up 10% on last year.
- 11% of surveyed companies are reducing staff, up 8% on last year, indicating changing economic times.
Download ‘Managing in a Multi speed economy' here...
Previous reports include:
