Chamber of Commerce and Industry WA survey shows business confidence in Great Southern among lowest in State

Great Southern businesses are among the least confident in the State, according to a survey conducted by WA’s peak business body. The latest Chamber of Commerce and Industry WA Regional Pulse Report, released earlier this month, shows the region’s businesses are struggling to stay positive about their economic future amid the COVID-19 pandemic. Only 18 per cent of businesses surveyed in the region said they were expecting stronger economic conditions in the next three months — the lowest percentage in the State. The Great Southern results come amid an overall dampening of confidence in regional WA, with a 26-point drop in short-term optimism, according to the CCIWA report. In the first CCIWA Regional Pulse report for 2022, 43 per cent of regional businesses expected stronger economic conditions in the next three months, down from 69 per cent in the previous quarter. The Great Southern was the only region where no businesses said they expected profit margins to rise in the next six months. It was also more concerned than any other region about the impacts of an uncontrolled outbreak of COVID-19, with 73 per cent of respondents identifying it as a potential growth barrier. In the report, CCIWA chief economist Aaron Morey said a lack of workers in the Great Southern was likely dampening business confidence. “Businesses in these regions continue to face difficulty attracting both seasonal and skilled workers — particularly those that rely on international and interstate migration,” he said. “COVID-19 isolation requirements are creating additional challenges for businesses looking to fill rosters.” The survey found that 91 per cent of Great Southern businesses were concerned about a lack of skilled workers being a growth barrier. Mechanical and electrical workers, chef and wait staff, and construction trades were the most in-demand occupations in the region. Mr Morey noted that 40 per cent of the region’s businesses were planning to hire people in the next few months. “While the opening of WA’s borders in early March will help to relieve some of these shortages, it is not likely to be a quick fix and tightness in WA’s jobs market is expected to remain for some time,” Mr Morey said. More than 80 per cent of Great Southern businesses identified rising operating costs were a growth barrier, second only behind the Wheatbelt. “Businesses in the agriculture, manufacturing and resources industries have reported rising material and equipment costs in recent months,” Mr Morey said. However the Great Southern was leading the regions for upskilling their existing workers, with 86 per cent of businesses ramping up their training efforts. Seventy-one cent said they had boosted their employee wages in response to worker shortages, compared to a Statewide average of 60 per cent. On another positive note, no Great Southern businesses reported being worried about competition from online and overseas. Mr Morey said the key challenges of worker shortages and rising costs had been heightened by the presence of COVID-19 in WA. ‘These challenges . . . are expected to ease in the medium term, along with COVID-19 restrictions and the State border,” he said. “They do underline, however, that international skilled migration will be critical in resolving skills shortages.”