The Global Financial Crisis (GFC) has contributed to a drop in demand for the services/products in 72% of local businesses, according to a survey released by Advance Cairns this week.

The Business Confidence Survey, conducted in March by the region’s peak economic development agency, was designed to gauge how Tropical North Queensland businesses are faring in these tough economic times, what impact the GFC is having on their operations, what plans they have for the future, and how the Federal Government can assist.

The online survey was distributed to 134 businesses from Port Douglas to Mission Beach. The results provided a snapshot of business confidence levels in the region, and were compiled from a sample of responding submissions to the seven-question survey.

Advance Cairns CEO Ross Contarino said that while it was only a small sample, the results of the survey reflect a general downturn in business confidence and a shift in operational strategies.

Mr Contarino said one of the most startling results from the survey was with regards to changes in staffing levels. “The survey results indicated a sharp decrease in staffing levels since the start of the year, with 50% of respondents indicating they had retrenched staff in that period,” Mr Contarino said.

“Future proofing their businesses was paramount to respondents, with many indicating they were re-negotiating supply terms, implementing staff training, with some increasing their marketing outputs to ensure their longevity,” he said. “There were a myriad of responses when asked how the Federal Government could act to improve the situation, varying from putting pressure on the State to amend state payroll taxes and spending money on infrastructure rather than cash handouts.”

The results of the survey will be used by the The House of Representatives Standing Committee on Infrastructure, Transport, Regional Development and Local Government in its inquiry into the key challenges facing regional Australia in light of the economic downturn.

To view the results of the survey, click here: TNQ Business Confidence Survey – March 2009

Tags: Advance Cairns, business confidence survey, Tropical North Queensland

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