Northern Territory businesses optimistic about their expected growth over the next 12 months
Deloitte Private survey
Almost a fifth (16%) of businesses in the Northern Territory expects growth of over 30% within the next 12 months, according to Deloitte Private’s inaugural Northern Territory Blueprint for Optimum Growth survey.
Businesses across a range of industries in the Northern Territory are telling us that they are optimistic about the opportunity to leverage off major developments in the construction and resource sector. This positive sentiment is reflected by the significant investments being made in hiring talented people, upgrading plant and equipment as well as buildings and premises,” said Karen Green, Deloitte Private Partner.
The Northern Territory survey of almost 100 businesses across a range of industries examines key issues affecting business growth such as key inhibitors of growth, levels of optimism and the impact of growth barriers on optimism.
“The survey results show that even though businesses expect growth over the next 12 months, retaining qualified and reliable staff remains a concern across the Northern Territory due to the high population turnover and costs of living,” said Ms Green.
“In my experience the above results are not surprising in that there are such a varied range of projections forecast over the next 12 months. This graph illustrates the industry diversity which makes up the Darwin economy. There are major project opportunities across the Territory but often they do not cascade through to all businesses in the region,” said Deloitte Private Partner Suzanne Archbold.
Summary of results include:
- Businesses are optimistic about the opportunity to leverage off major developments in the construction and resource sector. Almost all participants expect growth within the next 12 months
- Not all sectors had a positive sentiment, with the tourism, hospitality and leisure sector making up the majority of the 12.5% of respondents expecting zero or negative growth
- Businesses across the Territory are experiencing difficulties retaining qualified, reliable staff. This is largely due to our transient population, with the NT having a high rate of population turnover and higher costs of living
- The high cost of meeting regulatory compliance was a common issue for suppliers to the energy, infrastructure and mining sectors
- Cash flow remains a significant issue for those in the construction industry
- Winning companies will be those who focus on increasing market share, adding value to existing product and service offerings or find alternative income streams
- The current state of optimism is reflected by significant investments being made in hiring talented people, upgrading plant and equipment as well as buildings and premises.
“New product development, improved distribution channels and expansion into national markets have been identified as key focuses for growth strategies. It will be the organisations that can embrace these challenges, understand and meet their financial and cash-flow needs and adapt quickly to changing conditions, including regulatory changes, which are likely to emerge as winners in the race to ensure their growth projections are met and maintained to 2015,”concluded Ms Green.