When confidence rains in
On Australia Day this year, the local business community was starting to believe in its own future. There were cranes in the landscape. Retailers had a better Christmas than their southern counterparts. Residential build rates, while still low in comparison to other years, were showing improvement.
More money was changing hands and unemployment figures were on the decline. For the first time in 18 months, the Peel Valentine Whitehead (PVW) Townsville Business Confidence Index stated that small businesses were confident about their future.
Townsville was on the up. And then, it started raining.
Within a matter of days, we went from drought to flood.
Fast forward a few weeks past the immediate recovery efforts and Townsville has three economies. Sectors like hospitality, accommodation and some retailers are busy. Financial services and health sectors experience “business as usual”. Luxury goods and services, light manufacturing and some brick and mortar small businesses are rebuilding their customer base.
“The warning for those busy in business is not to be complacent. Prepare for 2021 when the economy normalises.”
It takes up to two months after a disaster for insurance assessments to be completed. While building panels have their work assigned by insurance project managers, independent trades will have the lion’s share of cash settlements and insurance sub-contracts. The Insurance Council of Australia says this is the fastest insurance response of any disaster in Australian history.
The experience of other communities, Hinchinbrook and Bowen especially, tells us this is a false economy. It will last up to two years, then demand will lessen, and a normalised economy will return. The warning for those busy in business is not to be complacent. Prepare for 2021 when the economy normalises.
Government response for those rebuilding or affected by business interruption has been underwhelming. Disaster Relief grants and loans do not take into account commercial realities like operational costs, inventories, and staff retention. Applications require time or cash at a time small businesses are in short supply of both. There is also a recovery centre for small businesses which offers information and mentorship. Small businesses will soon need more substantial professional help.
There is movement in the economic landscape. Will this shift send us backward? Or will this be the opportunity we seize to become the city we aspire to be?
