AHK World Business Outlook
In a special survey (in German) conducted by the DIHK with over 3,300 German businesses abroad, over 83% indicate an increasingly negative outlook regarding their business activities. More than eight of ten companies expect or are experiencing a diminished turnover rate.
In a global context, businesses in Australia have responded rather more positively than some of their counterparts. Over 34% of participating companies expect no change, or even an increased turnover this year. However, around 30% expect to be employing less staff compared to their previous planning. Travel restrictions, cancelled events and tradeshows, deferred investments, decreased demand, and disruptions to the supply chain have been named as the biggest factors negatively impacting their businesses right now.
To manage supply chain dependencies, around 17% of participating members are attempting to source more local suppliers. 82% are expecting an improvement in 2021.
While some industries have come to a standstill, others have been able to weather the storm reasonably well. Various factors have come into play. Sometimes, it is as simple as a company’s products and services being in increased demand. Other times it is a bit more complex. Some businesses have, for various reasons and circumstances, managed to adapt their business model.
Of course, the corona crisis is first and foremost a health crisis. But with it comes an increased risk to the livelihood of many people. Given the negative economic impact of COVID-19 worldwide, we are shining a light on businesses in Australia that have shown that sometimes elusive quality, resilience. In the latest edition of our quarterly magazine, we tell the stories of several companies and their journey through the pandemic. The issue, published online, will be out next week and is available for members and non-members. Subscribe here.
Thank you to all members of AHK Australia who participated in the survey.