Mackay businesses decimated by COVID-19 Economic Crisis
The results from the latest CCIQ- Suncorp Pulse Survey for the March Quarter show that business confidence and conditions in Mackay and throughout Queensland are now at their lowest levels ever recorded and the worst is yet to come.
The Pulse Survey for the March quarter recorded the lowest business conditions on record amidst the extraordinary forced closures and strict social distancing measures put in place by government in response to the COVID-19 pandemic.
The 12-month outlook for the state and national economies collapsed to historic lows as closure measures across the state led to significant declines in the bottom lines of businesses. Operating conditions, turnover, employment levels and business investment measures all plummeted to their lowest levels on record during the quarter.
Key results of business in the Mackay region show:
More than two thirds (71%) of business experienced weaker operating;
65 % recorded a decline in their sales and revenue; and
As a result 83 per cent expect the local economy to weaken over the next 12 months.
The forecasts for the June quarter indicate that businesses are anticipating conditions to deteriorate even further. Many businesses have expressed concern for their outlook and ability to survive under current circumstances.
CCIQ’s economist Jack Baxter said responses from the survey revealed devastating business conditions as owners and operators endure financial hardship and emotional distress whilst navigating an onerous landscape of lifelines and stimulus measures.
“Right now, some businesses are in a state of compulsory ‘hibernation’ where their sole focus has been focused on finding ways to stay afloat in the months to come,” Mr Baxter said.
“Businesses across the North Queensland region fared similarly to those across the State, however, a greater proportion of businesses are still battling with high operating and labour costs compared to the state.
“In Mackay, the implications of the COVID-19 pandemic will be felt more severely through exporting sectors such as mining, manufacturing, and agriculture, not to mention ‘non-essential’ service providers across the region.
“There is no motivation to invest in people or assets because there is such wide-spread uncertainty, and this is the primary concern for the long-term recovery of our economy, ” Mr Baxter commented.
Mackay Region Chamber of Commerce President, Victoria Gracie said the survey confirms the dire circumstances of the local business community.
“We’ve known for some time the harrowing circumstances businesses are experiencing here in Mackay, but still seeing the data of exactly how hard it is for so many is sobering and beyond concerning,” said Ms Gracie
“We have businesses closing their doors daily, and unfortunately due to the ongoing restrictions and travel and tourism bans there is little light to be seen at the end of the tunnel.”
CCIQ’s general manager of advocacy and policy Amanda Rohan said the results of this Pulse survey show how essential it is to put that plan in place and give business the confidence it so desperately needs.
“We have spoken of the need for recovery stimulus beyond COVID-19 and the need for it is so clearly evident from these results.” Ms Rohan said.
Ms Rohan commented that unquestionably many businesses have benefited, and many jobs have been salvaged through extra funding and assistance from government. But while the curve has been smashed, the economic and social impacts of coronavirus are only just starting to emerge.
“We are now discovering as a result of the COVID-19 pandemic, Queensland needs to invest in our local producers and manufacturers in order to provide jobs and livelihoods but also a resilient supply chain for consumers and for other business inputs.” Ms Rohan said.
“It is imperative that Queensland’s businesses are supported to emerge more efficient and resilient than before.
“There are several elements to this but, at the core of it, Queensland’s businesses need an economic road map so they can operate on the other side of the COVID-19 crisis.
CCIQ has been strongly advocating the need for a ‘roadmap to recovery’ plan and has provided the State Government with a detailed list of priorities including:
Fast-tracking projects - road, rail, resource and waste projects;
Investing in the eco-economy - moving faster on essential circular economy hubs to boost recycling and reuse of waste;
Suring up airline routes - incentivising and attracting air carriers and air freighters into regional Queensland and subsidising cargo out of Queensland; and
Improving connectivity - Investing in digital infrastructure that connects people and businesses in Queensland’s regions.
“Queensland needs a strong business sector to provide the jobs and livelihoods for everyday Queenslanders. We need to support them now or run the risk of losing them and their paying jobs forever,” Ms Rohan concluded.
The quarterly Suncorp Pulse Survey conducted the Chamber of Commerce and Industry Queensland (CCIQ) is the leading indicator of business sentiment and conditions in Queensland and was completed by a record 2419 businesses in the March quarter.
ENDS
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