From The CEO
Australia faces many challenges at present, with the slowdown of the Chinese economy having a significant knock-on effect on our economy as well as a weakened resources sector and a corresponding fall in the tax base, with its political repercussions. After over 2 decades’ growth, that led to us being dubbed the ‘lucky country’, many in business have become used to the numbers only ever going upwards, and this relative perceived change in our fortunes has led to a fall in business confidence. Whilst the economy in New Zealand (after suffering significantly more than Australia during the GFC), is humming along at the moment, the country faces at least 3 years of below-cost returns in its biggest export industry: dairy and this is likely to have an impact on the wider economy. Added to this we will face the wind-down phase of the Canterbury rebuild.
Unfortunately, uncertainty can lead to a creeping paralysis with many companies frightened to make decisions, or waiting to see what their competitors are going to do. However, many of the underlying indicators remain strong in both countries, and the economic reality is rosier than many business surveys (particularly in Australia) suggest. Renoir knows that whether you are fighting for survival, or wanting to improve your margins, prevarication is your biggest enemy and that the only real constant in business is change- which is something we have a lot of experience in helping companies with!