Australian small to medium enterprises expect the cost of doing business to rise this year but are keeping their sights on a reprieve from the Reserve Bank. A NAB survey found 22 per cent of businesses expect to see profitability decrease over the next year.
Australian small to medium enterprises expect the cost of doing business to rise this year, with stubborn inflation and a tight jobs market.
Mr Pamment has seen prices driven up by the high cost of construction materials and a skilled labour shortage. While high end projects were still going ahead, smaller projects had stalled."I think a lot of people put a lot of blame on the builders… but it's a tough time to be a builder — we're just passing the costs on to the client from the materials," he said.
Over 10,000 insolvencies have already been recorded for the current financial year, while a record 14,000 were recorded for the whole of the previous financial year, and 10,000 for the year before that. He said Pamment Projects was also changing their approach by locking in costs at the beginning and discussing everything with the client "so the cost can be agreed on early before they start designing so the design doesn't get too elaborate".NAB's top business banker said she believed insolvencies peaked in November of 2024.
"We are moving into uncertain times again, but that doesn't mean that we can't combat this using processes and technology to be able to continually keep performing against the market." He said they have reduced their energy use by 40 per cent, compared to what a conventional greenhouse would use. 2025 offers no quick fixes to the economic problems of the past year, according to experts, but expect an easing of interest rates and inflation that have made life more difficult for millions of people."I definitely think that you will be getting more calls and more inquiries on projects, and a lot of projects that we may have priced last year that were put on hold will go ahead.
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