Pacific Finance Australia’s Managing Director Jeff Doig says agriculture and manufacturing industries are on the rise while mergers and acquisitions are taking hold for many WA businesses.
Pacific Finance is WA’s leading independently owned asset, commercial and property finance broking group, and is centric to the many financial transactions taking place for local businesses.
Mergers and acquisitions
WA is experiencing a vast shift in local industries which is driving the economy in a new direction.
“Many industries are currently experiencing a changing of the guard, so to speak,” Mr Doig said.
“Many of our clients are seeking growth through mergers and acquisitions; this is a direct result of current market conditions - we’re in a buyer’s and seller’s market, as there is demand at both ends.
“Shortages in staff and equipment on the buyer’s side, as well as limited succession planning on the seller’s side, has placed many businesses in a precarious position; so acquiring another business could be the solution to those problems.
“Our role as a Finance Partner, is to offer clients finance solutions for their entire business life span, we have also built an extensive network with key industry professionals who are the best in this space, and we can refer clients to a number of services of which can guide them through this process.”
Emerging industries, innovation, and opportunity
Pacific Finance has historically worked with clients in the mining, civil and transport industries, as this continues to be a core part of business for the group, however manufacturing, engineering and agricultural industries are experiencing rapid growth.
The Covid pandemic has created world-wide shortages and lengthy delays in goods being manufactured overseas which has directly impacted the local economy.
“We have experienced a shift with these industries ramping up to meet the needs of manufactured goods required locally,” Mr Doig said.
“For example, the local metal fabrication industry ramped up because of this shortfall. We noticed businesses were looking to buy local to avoid shipping delays, as well as securing their own supply chain against any future shocks.
“We’ve been working with these emerging industries, and in particular with a lot more businesses seeking asset finance solutions to purchase engineering equipment where staff shortages have impacted their business, as well implementing solutions to meet the increasing demand of goods.”
Innovation and automation are driving the market right now with businesses seeking solutions with new technologies to combat labour availability and increased product demand.
Businesses who rely upon immigration and movement into WA have been struggling to meet demand.
They are seeking smarter and more productive ways to work. More so than ever they’re investing in automation equipment that can help alleviate the shortfall in labour hire, hence the growth in the manufacturing industry in WA.
“New and emerging industries are now growing to meet the needs of manufactured goods required locally, with many new businesses starting up and requiring finance assistance, which we’re well placed to do,” Mr Doig said.
But as WA has now relaxed rules around closed borders, it is anticipated some pressure will be alleviated around labour shortages, providing businesses with extra reassurance to purchase assets that can be operated by a stronger labour force.
Pacific Finance growth strategy
Pacific Finance has doubled down on its core strength which is providing premium finance solutions to self-employed and business customers.
Businesses seeking finance solutions continue to be a priority, which places Pacific Finance’s expertise as an invaluable asset for many WA businesses.
“Our focus is on constantly improving our own commercial capability to continue to deliver the best outcomes for our clients through their entire business life span,” Mr Doig said.
Industry and client-base diversity is a strength of the group, while its focus is on growth and bolstering its own commercial capability to deliver the best outcomes for clients.
“We hope to achieve organic growth as a result of our succession strategy. We are in an aging industry and we’re actively looking for acquisition opportunities ourselves; we therefore anticipate growth via acquisition and have the systems and infrastructure in place to execute this objective.
“Consequently, this will increase our market share and cement our position as WA’s leading commercial finance broker with the highest level of practical know-how in the market.”
