It’s been a very strange time for businesses due to the pandemic and the upcoming phases may also present some ongoing and new challenges. But for many operators, the stimulus measures introduced throughout 2020 are still bearing fruit and further developments are in the works. Due to the global impacts of the pandemic and the ongoing crises in some regions, even small businesses need to take a broad view of economic conditions when planning their equipment and machinery investments.
Earmarking where opportunities could be and where potential issues may be lurking is a challenge in itself. But with the budget season in full swing, the direction can be taken from some of the government announcements. We take a look at the possible prospects across some sectors.
Sectors for Potential Gains
The annual round of budget announcements at both a state and federal level are worth analysing in detail for what could be ahead for your industry or for your individual business.
The pre-budget speech delivered by the Treasurer made a key mention of the energy sector. Specifically the focus on delivering reliable and affordable energy with special mention of renewables. With the pressure to deliver on climate policy, this is likely to be an area where opportunities may be realised.
Following the recommendations of the Royal Commission into the aged care sector and the devastating outcomes caused by the pandemic, this sector is certain to get a massive boost in spending. For operators looking to upgrade their facilities to meet the expectations of the community and their residents, we remind you that Jade Equipment Finance provides finance in this sector.
Independent distillers and craft beer brewers stand to gain from a targeted tax cut in the upcoming Federal Budget. The rebate on excise will be increased from the current $100,000 to $350,000 which is expected to represent a benefit, on average of around $55,000 to the business. The measure is being introduced to encourage investment and it could be the encouragement you need to invest in new equipment to expand your business. Finance for brewing, distilling, warehousing and other equipment is available through Jade, so talk to us about what cheap deal we can source for your business.
Child care benefits for some families has been announced and for facility operators, this could be your incentive to upgrade.
For NT businesses in the residential home building sector, you too could be in for a boost with the NT government announcing a significant investment in land releases. An investment of this kind has the potential for flow-on benefits through many businesses and their suppliers. An increase in work could signal the need for machinery and equipment upgrades.
NSW has focussed intensely on infrastructure over quite some time and in the lead-up to their mid-June budget, there are already more projects being mooted. The latest being a possible tunnel(s) in or should be said though, the iconic Blue Mountains to reduce road congestion.
In the wake of the devastating recent floods in NSW, the government has announced it wants the repair works to favour local contractors. With the vastness of the damage to roads, bridges, facilities and both public and private properties there is sure to be a lot of construction activity in the affected regions.
Post-election, the Gutwein Government in Tasmania will hopefully be busy making good on election promises, especially in the health sector. This was a major issue in the election and hopefully, local businesses will benefit from the upgrades and improvements proposed. More information here.
The health sector in general is likely to be the focus of many business opportunities for quite some time. The issue of constructing specialised quarantine facilities is receiving a lot of attention. Howard Springs in NT is being expanded and the Prime Minister is reportedly considering the proposal presented by the Victorian government.
The vaccination program is also presenting opportunities in the building of some specialised vaccination hubs and for GP clinics and other providers to upgrade or expand in order to efficiently deliver the vaccines. While the focus has been on the initial roll-out, the process may be more long-term prospects as booster jabs down the track have been suggested.
Medical and health, in general, will be sectors to watch for gains. It was widely reported that many people delayed getting some routine tests and treatment due to the pandemic. With that crisis phase seemingly over, there could be high demand for some services as patients resume normal demand.
Where the Chips are Down
While some sectors are set for gains, issues globally in others could be signalling warning signs. A global shortage of electronic chips is causing production delays and other disruption in key automotive and electronic sectors. The business mentioned in reports as being affected includes tech giants Samsung and Apple, automotive leaders Honda, BMW and Ford and leading equipment manufacturer Caterpillar.
These issues affect production which could flow on to shortages in supply down the line in Australia. Moving forward on say your Caterpillar purchase now, from current stock, may prevent you from having your own delivery delays.
Being Proactive
Investing in equipment now can place your business in a position to be ready to capture opportunities as they present in your sector. Utilise our online equipment loan calculator to calculate estimates and speak with one of our consultants to discuss how Jade Equipment Finance can assist with a great finance deal.
Call 1300 000 003 to discuss a finance package for your requirements.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
