18.09.2024Pitcher Partners’ Business Radar 2024 shows steady confidence 

The Business Radar report canvasses the trends, challenges and opportunities experienced by business, how leaders feel about the current and future success of their businesses, and what that could indicate for Australia’s economy.

According to the 2024 Business Radar, confidence is steady and boosted by solid demand, but still being chipped away by increased costs.

The stable numbers appear across different business types, a sign that business leaders are navigating the current environment well after four years of uncertainty.

Pitcher Partners said it expected to see a gentle decline in overall confidence levels as the year progressed after a bump in 2023.

“After some ups and downs, business confidence is refreshingly steady in our latest Business Radar report, with the slightest suggestion of an upward trend.

“Business owners and leaders continue to face increased operating costs, but their confidence is buoyed by strong consumer demand and the efficiency gains from tech advancements like generative AI and process automation.”

Factors positively affecting confidence in Business Radar 2024 include:

• Demand for products and services: 43 per cent
• Technology advancements: 37 per cent
• Consumer tastes and preferences: 31 per cent

Factors negatively affecting confidence are:

• Increased labour and operating costs: 42 per cent
• Inflation: 34 per cent
• Changing interest rates: 24 per cent.

Productivity

Pitcher Partners also found a “surprising overall increase in reported productivity”, with almost two-thirds of respondents reporting their operations were more productive than two years prior.

Supply chains made a big difference, with 28 per cent of respondents who’d seen productivity gains agreeing supply chain dynamics were an influential factor.

Despite the positivity, 52 per cent were concerned about the levels of productivity (though larger businesses were less concerned at 33 per cent not concerned vs 22 per cent overall), citing labour shortages and employee retention, skills and training gaps, and employee burnout and engagement issues.

Business Radar 2024 also examined succession planning to find out how many businesses were facing a change at the top, who has a plan, and what they hope for the future.

The full report can be found at Pitcher Partners 2024 Business Radar.