Hear Chris Thomas, NAB Executive Commercial Broker and Equipment Finance Sales recap on 2024.
Video
NAB’s Chris Thomas, Executive, Commercial Broking and Equipment Finance Sales, shares insights on the Australian economy, and opportunities for brokers to guide their business customers as they navigate a challenging economic environment and prepare for future growth.
Australian businesses are continuing to show resilience in our economy. While different sectors and locations are moving at different paces, NAB expects the economy to grow more quickly in the second half of the calendar year.
In NAB’s recent SME Business Insights Survey, it was encouraging to see nearly 60% of Australian businesses planning to invest over the next 12 months, with Finance & Insurance (76%), Property Services (67%) and Business Services (76%) sectors leading the charge[1].
Despite a challenging economic environment, SMEs are continuing to find ways to thrive by investing in what matters most to their business – their people.
Hiring, retaining and developing new staff is an ongoing challenge for business owners as many grapple with labour and skill shortages across their industries.
Businesses are looking for innovative solutions to hire, retain, engage, and invest in their teams.
Regionally, investment intentions in staffing are particularly strong in South Australia (72%), while by industry, Business Services (74%), Construction (73%) and Healthcare (70%) are standouts when it comes to putting the right team together.
NAB’s research shows national demand for new hardware and equipment, with 1 in 5 businesses looking to invest in new equipment. In fact, purchasing new equipment was a much bigger priority in Accommodation & Hospitality (47%) and for Queensland businesses (31%). Health Services (35%) came out on top for investing in additional or larger premises.
Brokers can guide their customers with equipment and asset finance purchases by being proactive and ensuring a clear line of communication on a regular basis. Our team at NAB can assist both brokers and customers for equipment finance through our breadth of experience and understanding across numerous industries, with access to fresh data and economic insights from NAB’s dedicated Group Economics team. We provide a timely service proposition as equipment finance is a highly portable product and very competitive.
Many businesses are actively exploring geographical expansion, with nearly 29% planning to invest in new markets across Australia. This trend is particularly prominent in Tasmania, where 80% of businesses are looking to expand their geographical reach.
In addition to expansion, companies are zeroing in on innovation and improving productivity with 32% of SMEs looking to invest in new technologies or systems.
The key for brokers is to deeply understand SME customers and their businesses. By grasping the context in which these businesses operate, brokers can build stronger relationships and offer more tailored solutions.
The next 12 months present an excellent opportunity for brokers to lay the groundwork for longer-term relationships by helping business customers ride out the current market cycle and set themselves up for future success.
Brokers can explore NAB’s data and insights further below.
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Article published in The Adviser Digital Magazine in November 2024.
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