Welcome to the August newsletter
Despite COVID-19 restrictions constraining parts of Australia’s economy, business confidence is recovering and labour demand is strong, with South Australia experiencing the highest number of people ever employed in the state at 871,000 in May 2021.
With opportunities across multiple sectors, including robust key mineral and petroleum commodity prices, the outlook is positive. There are extensive opportunities in the defence sector, particularly for businesses with niche capabilities; and new opportunities are emerging in the renewables sector, such as hydrogen.
However, before you see any return from these opportunities, you may need to invest so that you’re well positioned to win tenders for the Expressions of Interest you’re applying for via ICN Gateway. Possible sources of investment include loans, partnering arrangements and government grants which were discussed at the Showcase SA industry briefing on investment earlier this year.
Loans can be provided by friends and family, banks or other organisations such as Export Finance Australia, which can provide fast, unsecured loans, longer term loans, bonds and buyer finance along the entire supply chain for goods and services exported from Australia.
Partnering arrangements include joint ventures, mergers and acquisitions, and equity investment – this impacts on ownership or equity and control but may have benefits from being able to draw on expertise from new partners.
Commonwealth and State Government grants are often aimed at stimulating business investment that would otherwise not occur, and usually require industry co-investment. Grants may be competitive or non-competitive, and your project would need to meet specific criteria before it can be considered for grant funding.
With all of these options it is important to clearly identify what you will be funding and why external investment is the best fit for your business. It’s worthwhile seeking advice on the type and terms of investment to get the most benefit for your business and ensure you’re well-positioned for long term growth – which will continue to grow jobs in South Australia.
Manager Supply Chain Development
Read the full newsletter here.