1 March, 2026
1 April, 2026
Business Pulse: April 2026
At a time of rising input costs, it’s encouraging to see businesses focusing on what they can control – and doing it well.
By Shane Ditcham
I speak with our business customers every day. Right now, many are uncertain about where interest rates are headed and increasingly focused on the rising cost of inputs. For some, that pressure is coming from fuel, freight and energy. For others, it’s labour, materials or imported goods. Almost universally, conversations are turning to cash flow, working capital and risk management. And yet, we’re still hearing strong, positive stories. Many businesses are performing well by focusing on what they can control – tightening operations, strengthening partnerships and planning ahead in an environment where uncertainty has become the norm.
Nupak Australia is a great example. A packaging business based in South Australia, they’ve enjoyed considerable success in recent times – with gross revenue up 36% in two years – as they’ve adjusted their people, processes and systems.
There’s no doubt they have a great business proposition. But much of their success over the past couple of years lies in their strategy, including the new equity partners they brought on board, one in 2022 and another in 2024. Not only did both contribute additional finance, they also brought considerable expertise in areas that have clearly benefitted the business.
Co-owner Barney Smith was one of the business’s new partners, buying out an exiting shareholder four years ago. He has used his background in technology to bring the business into the modern age, working to consolidate systems and make processes far more efficient. “Before that, we would regularly oversell products because no one knew what the other person was doing,” he says.
It was a win-win for both the business and its customers. “It provided massive efficiency to the customers,” Barney says. “And because our staff were no longer stuck processing manual orders, they could spend time talking to customers about new products.”
Stronger supply chains
Nupak’s other new partner, Liam Iori, brought 25 years of packaging experience with him. “Prior to Liam, we were dealing with around 40 to 50 individual, smaller factories,” Barney says. “He introduced us to large scale factories that had consolidated – one factory can do what eight were doing for us. Plus, they could deliver better quality at better prices.”
Today, Nupak works with around 20 factories. That clearly benefits the business: “It puts us in a stronger position because we have reliability in our sourcing,” Barney says.
It also benefits the suppliers: “We’re supporting these factories with high volume rather than splitting it up, which gives them stable orders and mitigates disruptions.”
It’s about controlling what you can – more important than ever in the current environment. There’s no doubt that effectively collaborating during business-as-usual sets you up for success when things don’t go as planned.
Power of partnerships
NAB’s quarterly SME Insights business survey makes it clear many businesses are putting their faith in people and partnerships. Those looking to invest in people jumped from 28% to 35% last quarter, while partnering with other businesses rose from 10% to 14%. New supplier arrangements, meanwhile, increased from 16% to 20%.
A lot of it comes down to risk management. So too does managing working capital and hedging your FX risk – both top of mind in recent months. According to the research, businesses are increasingly reviewing their cash flow and working capital, up from 27% to 35% last quarter.
Nupak is no different. In fact, its rapid growth has made it an imperative. “As a direct importer, you’re funding all that growth and cash flow for the best part of six months before you see a return,” Barney points out. Managing cash flow and currency exposure is therefore critical.
Again, strong partnerships have been key here. Barney admits they couldn’t have achieved their success the way they were previously operating – through an overdraft. Quite simply, “we would have run out of cash flow.”
But that level of support was beyond their previous bank – which is where NAB stepped in. “The trade finance they provided, and the FX flexibility for spot rates on US dollars, allowed us to mitigate currency risk,” Barney says.
It’s another factor contributing to Nupak’s expected 20% increase in revenue this financial year.
We’re here to help
Many Australian businesses are line‑by‑line through their budgets right now, weighing input costs, fuel, freight and investment decisions. Some pressures are unavoidable. But planning ahead, understanding cash flow impacts and having the right support in place can make a meaningful difference.
If your business is looking for additional support to manage risk, smooth cash flow, or pursue new opportunities, please speak with your NAB Business Banker. We’re here to help you stay on the front foot.
