Businesses in the Orana region of NSW are continuing to perform well despite recent interest rate rises, according to the results of the latest Reliance Credit Union Regional Business Survey released today, Monday 14 April, by Charles Sturt University’s Western Research Institute (WRI).
“Orana businesses reported greater profitability than regional NSW for the first time in over 12 months, despite an overall increase in operating costs,” said Chairman of GoWest Growing Opportunities in the West of NSW, Mr John Walkom.
Orana businesses in all industry sectors are expecting an increase in sales performance, outperforming regional NSW in the June quarter. The report author and WRI CEO, Mr Tom Murphy, said 60 per cent of businesses are expecting good or very good sales performance in June compared to 57 per cent for regional NSW. “The greatest increases are expected by the tourism and transport sectors,” Mr Murphy said..
Capital expenditure also increased over the period. CEO of Reliance Credit Union, Mr John May, noted 21 per cent of businesses in the Orana region increased spending on new buildings, plant and equipment this March quarter compared to 18 per cent in December.
“When asked how they financed their investment in capital expenditure, 64 per cent of businesses that either maintained or increased capital expenditure said they funded this investment out of their own earnings, while 31 per cent borrowed finances,” Mr May said.
“Orana businesses were slightly more likely to have invested in equipment than in plant, or buildings. This is in contrast with regional NSW businesses which preferred to invest in vehicles and other plant.”
The number of businesses increasing full-time and part-time staff grew in the March quarter, while the number of businesses employing casual staff remained stable. Orana businesses expect to increase full-time and casual employment levels and reduce part-time positions in this quarter.
The survey results came from analysis of responses from 184 businesses from the Orana region and a further 338 from across regional NSW.