The magic ingredient is … confidence

Well, we have certainly all seen and felt some challenging times over the past two years, and especially the last couple of months. As the peak independent Chamber of Commerce and employer body in South Australia, here at Business SA, we’ve heard the stories of struggle and hardship across the business community. But what we heard from Premier Marshall and Treasurer Lucas over the weekend paints a more positive picture from now on.

Following the support and stimulus package announced on Saturday morning, after which I almost skipped into our offices on Greenhill Road to meet with the media, South Australian businesses have good reason to believe that the magic ingredient of confidence is coming back. It is the confidence of knowing that we are hopefully over the peak of the Omicron wave, and with over 90% of the population vaccinated, we can see that recovery is within our grasp. It is also the confidence of knowing that this support and stimulus package will go a long way toward boosting consumer activity in the hospitality, leisure, tourism, arts and retail sectors.

To name a few of the initiatives announced by Premier Marshall on Saturday, the State Government has doubled the grants, brought back the vouchers, deferred payroll tax and people can travel to the CBD for free during the Fringe/Festival period. Business SA called for many of these initiatives on behalf of our members and the broader business community and five out of six of our recommendations have thankfully been adopted.

Business SA is looking forward to soon releasing the results of the Business SA William Buck Survey of Business Expectations for the December 2021 quarter. As always, this is an exclusive launch with our friends here at The Advertiser and will be on Tuesday 8 February. I’m not going to build any false expectations, as early analysis of our survey results indicates that business confidence and conditions were highly challenging during the October to December 2021 period. Not surprising. However, that only underscores why it was so important for the State Government to inject some confidence back into the marketplace now.

As a teaser to the release of the Business SA William Buck Survey of Business Expectations, I can reveal on a more positive note that nearly half of businesses were planning on investing into new plant, equipment and or machinery in the next 18 months. This is an excellent indicator that South Australian businesses are next-level resilient despite the significant challenges. With the support package announced on the weekend now available, I can only see this investment increasing over 2022 and beyond. ?

What happens when you have solid business confidence is that it leads to consumer confidence as well. People feel more secure about their jobs and their future. With recent announcements about the easing of restrictions, South Australian consumers can be assured that it is now safer for them to hit the streets and support their local businesses. Buying local to support your local has never been more important. The South Australian economy needs consumers to be spending with confidence, especially in the City of Adelaide where many traders have been hit hardest.

With the release of accommodation and dining vouchers on offer from the State Government and Adelaide City Council, there is no excuse for us not to enjoy the superb South Australian accommodation, tourism and dining experiences in the CBD, North Adelaide, metropolitan Adelaide and regional South Australia.

All of this is occurring just in time for the Fringe/Festival period here in Adelaide, so I encourage you to take advantage of the free public transport that the state government announced over the weekend. We have some exciting news here at Business SA that we will soon be sharing about the Adelaide Fringe, but I won’t share any spoilers on that topic today!?