Over 85 percent of large businesses interviewed in the bi-annual Making Western Sydney Greater research expect to grow their business within the coming year, while 66 per cent of SME businesses recorded a similar expectation. An average growth rate of 8.63% is expected over the next 12 months.
Overall business sentiment was also notably positive. The Business Sentiment Index for Western Sydney remained positive, moving slightly from 15.83 (Q4 2014) to 13.49 (Q2 2015).
The Making Western Sydney Greater research is a collaborative project between William Buck, St.George, the University of Western Sydney and Western Sydney Business Connection. The research report drew on responses from over 200 business owners and senior management personnel involved with businesses in Western Sydney.
Greg Travers, Director at William Buck comments, “Overall business sentiment for the Greater Western Sydney region is positive. It is interesting to note that the business sentiment amongst large businesses has improved significantly, and while the SME demographic remains positive, the business sentiment for these businesses has actually decreased.
“Both SME and large businesses are forecasting that they will exceed their revenue and profit targets. Capital expenditure is expected to be maintained for SMEs, and marginally increased for large businesses.”
Employment trends were also very strong and consistent with the positive outlook for economic activity in the region. SME businesses expected to increase the number of full time employees by 1.9 per cent while large businesses expect a 3.3 per cent increase.
According to the Employment Projection Report prepared by the Department of Employment, employment in Greater Western Sydney was projected to grow by approximately 10.7 per cent over the period spanning 2014 to 2019. The research indicates the actual growth in employment should exceed this forecast.
Matthew Kelly, Executive Manager for Western Sydney at St.George said, “Overall, the research indicates a real strength in the Greater Western Sydney economy which reflects what I’ve been hearing from St.George business customers in the region".
“It’s positive to see a big proportion of businesses expecting to grow. Many have taken concrete steps to plan and implement this growth. There are also some businesses that appear to be at the front end of their growth cycle and have not yet planned for future growth - these businesses are facing huge potential to expand their workforce and invest in the future.”
Export markets and new product development are two growth opportunities for Western Sydney businesses that don’t appear to be fully exploited. Less than 25 per cent of SME and large businesses consider increasing their export sales to be a key part of their growth strategy, and only around half considered developing/launching new products or services as key.
Greg observed, “On one hand this indicates further potential growth opportunities for businesses in the region, which is a positive. However, it also raised questions on potential barriers to accessing export markets and inhibitors for innovation and investment in new products and services. These are issues we will be looking to further explore with businesses.”
Warren Day, Director, Engagement at the School of Business at the University of Western Sydney said, “One of the biggest issues identified by all businesses was the challenge in finding employees with the right skills. With a projected upswing in employment in Western Sydney, applying skills development training alongside a local procurement policy are important steps towards developing Western Sydney’s workforce for the future.”
Development of Parramatta CBD
Developing the Parramatta CBD is a central plank of the State Government’s policies for the region. A special focus of the research was on business attitudes towards this strategy.
For businesses based in the Parramatta LGA, almost without exception the redevelopment of Parramatta is seen by business leaders as positive for their own business and also for businesses across the region.
For businesses based outside of the Parramatta LGA, 90% view the redevelopment of Parramatta as valuable for businesses throughout Greater Western Sydney, although only 60% believe it will be valuable for their own business.
Businesses identified three priorities to ensure the success of Parramatta as the second CBD.
- Creating improved public transport connections with surrounding Western Sydney centres (Westmead, Rydalmere, Olympic Park and Norwest) was the highest priority identified by businesses across the region as a whole, and the highest priority issue for businesses located outside of the Parramatta LGA.
- Increasing the number of financial and professional service businesses with substantial presences in Parramatta was a high priority for business across the region as a whole, and the highest priority issue for businesses in the Parramatta LGA itself.
- A third priority was to ensure Parramatta is developed as a “living city” by having an appropriate mix of residential, commercial, entertainment and open space developments.
“Turning the vision of Parramatta as a second CBD into a reality that delivers real benefits for businesses will be challenging, but focusing on these key priority areas is a must. With the right policies and support, Greater Parramatta and the Western Sydney region can drive the future productivity of Sydney and New South Wales,” Greg concluded.
The next Making Western Sydney Greater research will be undertaken in October.
