transcript from John’s market update
I wanted to give everyone a little bit of a market update. What’s happening out there? What are we talking to business owners about? And there’s one thing that is for sure… and that’s this overwhelming feeling of positivity and optimism out there in the market.
Business owners are looking to invest, particularly in growth, and they’re also looking to take advantage of the opportunities that are out there at the moment.
Probably the biggest challenge we’re hearing people face at the moment is actually around resources. And I’m specifically talking about the resources of personnel. Being able to find the right people to do the jobs that business owners want to actually invest in is a challenge. I’ve got clients that have actually said they’ll take anybody with a pulse at the moment within a manufacturing environment. That creates a lot of concerns around the supply of people, whether it be for specialist or non-specialist roles.
The concern with that is that we are starting to see an increase in wage expectations. Now, that’s probably a good thing for the economy as a whole, but lots of business owners are getting concerned by this wage growth as they’re also getting a little bit worried about inflation.
We’re also seeing lots of transactions happening at the moment. I know our legal team and our business broking and agency broking team are getting lots of enquiries from both sellers and buyers with businesses. We’re seeing optimism as we’re seeing money coming into the market from overseas buyers but we’re also seeing people considering if it’s a good time to sell.
With growth in mind, we’re also seeing business owners investing in their marketing and in their branding.
We’re seeing people wanting to reconnect with their teams. So lots of enquiries about team workshops, personality profiling and strategy.
We’re also seeing people investing in their technology. Business owners have recognised that investing in their technology will give them an efficiency that will last forever so they can be so much stronger into the future.
Of course, the end of the financial year is just around the corner. I know our accounting team is having lots of conversations about tax planning and we’re starting to see people asking questions around the increase in the superannuation guarantee amount increasing to 10% from the 1st of July.
So that’s what I’m seeing in the market at the moment. Do you agree? Or is there something else going on out there that you think other business owners need to be aware of? If so, please get in touch.