There is good news ahead with 2010 shaping to be a much better year for Western Australian businesses, with a majority of employers expecting the local economy to pick up pace in the next 12 months, according WA's peak industry body.
There is good news ahead with 2010 shaping to be a much better year for Western Australian businesses, with a majority of employers expecting the local economy to pick up pace in the next 12 months, according WA's peak industry body.
In the latest Commonwealth Bank - CCI Survey of Business Expectations survey, which canvassed the views of almost 500 companies across a range of business and industry sectors, reveals that businesses across the state were expecting a new wave of economic growth and prosperity.
The report shows business confidence is the highest it has been in 13 years with 58 per cent of companies expecting WA's economy to strengthen in the year ahead, up from 45 per cent in the previous quarter.
Chamber of Commerce and Industry WA chief economist John Nicolaou said it was a marked turnaround from the record low levels at the beginning of 2009 when the full affects of the global economic slowdown were being felt by business.
"Back then, less than 6 per cent of respondents believed that economic conditions would improve over the coming year," he said.
"The sharp turnaround in business confidence is impressive. It shows that businesses are gearing up for the opportunities headed our way, which gives us all renewed hope that Western Australia's economy has turned the corner."
Mr Nicolaou said a majority of WA businesses were enjoying favourable economic conditions, with three quarters reporting that current conditions were favourable for their business.
The return to confidence has seen businesses develop a new appetite for growth. More than a quarter of respondents see 2010 as a good time to expand their business.
Commonwealth Bank WA general manager corporate financial services, Greg Caust, said rebound in business conditions was good news for job seekers, with one quarter of respondents hiring more staff during the December quarter, while nearly 40 per cent saying they will take on more staff early in 2010.
"It is a good sign that local businesses are dusting off their investment plans after what has been a challenging year. Banks and other financial institutions are again seeing an increased number of businesses wanting to borrow money as they ready themselves for the next wave of WA growth," he said.
However, the rebound in confidence and business activity has meant that a larger number of businesses were finding it difficult to find the people they need, echoing challenges of the boom.
About one quarter of respondents to the survey found labour to be "scarce" in December, up from 20 per cent several months earlier.
CCIWA anticipates labour shortages to hit businesses the hardest in 12 months' time.
About 43 per cent of businesses believe their inability to attract and retain workers they need will have a harmful effect on their operations in one year's time. A further 12 per cent anticipate the problem having a very negative impact.
Businesses in the construction sector are expected to worst affected, with 68 per cent believing the problem with have an adverse impact on them.
With a growing number of local employers anticipating a return to the severe labour shortages of the past, the survey's feature question asked respondents about the likely impact the issue will have on their business.
More than half of businesses surveyed said labour shortages would adversely affect their operations over the next year.
Construction trades workers will be highly sought after, as will managers, technicians and trades workers, and engineering, ICT and science technicians and machinery operators and drivers.
