Building up confidence for local business

It has not been an easy first half of the year for Eyre Peninsula businesses and this is reflected in the latest State Monitor report from BankSA.

The report shows consumer and business confidence is down across rural South Australia, and the Eyre Peninsula is no exception.

Dion Dorward from Regional Development Australia Whyalla and Eyre Peninsula gave a couple of reasons for what he believed was contributing to a lack of confidence.

Anyone who lived through the blackout in September last year can understand why one of those reasons is uncertainty about the delivery of energy to the region.

On top of rising electricity prices it would be no surprise that some people would be choosing to put more aside for a rainy day rather than go out and spend.

Speaking of rainy days, another suspected reason for the downturn in confidence stems from a group of people who many consider to be the lifeblood of rural communities across Australia – farmers.

This year saw a dry start to the season with many farmers altering their seeding programs in response to the lack of autumn rain.

Farmers are hoping for the August rain to continue and a kind spring to give their crops a chance of at least an average harvest.

In the meantime farmers would not know how much they might make this year and may be limiting their spending.

No matter what the reasons are, this is the nature of the business world, there will be periods where people are confident and sales go up and sometimes sales go down.

It is not all doom and gloom as the Eyre Peninsula’s tourism industry continues to perform strongly as more people come to see what the region has to offer.

There are also many large companies looking to invest billions of dollars into mining and drilling in the region.

Iron Road’s Central Eyre Iron Project as well as Statoil and Chevron’s push for exploration in the Great Australian Bight have many critics about the effect they could have on the environment.

However there are also those who see what they could bring in terms of investment, which would drive business confidence up.

The future is always uncertain in the business world and it is no different here on the Eyre Peninsula, only time will tell where confidence levels go from here.