Alignment of macro-economic factors have not been as encouraging for a long time. Low inflation and interest rates, a stable workforce, improving consumer and investment confidence, evolutions in accessible technology, and the ongoing internationalisation of our markets are all trending in business’ favour.
Locally, the added complexity of this year's South Australian state election, with Labor seeking a 5th four year term, and a new third popular party, has made it even more interesting to watch.
Power prices and supply are a genuine concern for our clients with many facing large increases on what they are currently contracted to pay. Manufacturing clients and similar businesses face having their power expenses double once current contracts expire.
A number of major projects in Adelaide, either completed or due to commence, will bring plenty of opportunities.
The controversial $2.3bn new Royal Adelaide Hospital forms an integral part of the South Australian Health and Biomedical Precinct, sitting alongside the South Australian Health and Medical Research Institute, the University of Adelaide Medical and Nursing School and the University of South Australia’s Centre for Cancer Biology.
The co-location of these services helps increase the development of new industries and research, whilst attracting foreign investment in medical devices, pharmaceuticals and related areas. The precinct hosts between 10,000 and 15,000 people involved in research, teaching and clinical care at any one time. In the near future, The Women’s and Children’s hospital is also set to move to the new Royal Adelaide Hospital site.
These facilities help drive the state’s education market, now one of South Australia's leading exports. In 2015 there were 32,100 onshore international student enrolments in spending nearly 1.2bn on education fees and other goods and services associated with living here. This number reached 36,000 by the end of 2017.
A 20-storey hotel between Parliament House and Adelaide Casino is set to bring employment, leisure and real estate opportunities, forming part of the State Government’s $1bn riverbank redevelopment on Adelaide's most esteemed real estate.
The Westpac building will no longer be the tallest building in Adelaide with construction of ‘The Realm’ having commenced in September 2017. The state planning authority gave the green light to build a 40-storey tower that will rise 132m above Renaissance Arcade.
So, it would appear things are happening and opportunities do exist. However, while opportunity is defined as the existence of circumstances that make it possible to do something, it also requires the impetus of businesses to act. We encourage all our clients to examine their current opportunities and act for their longer term benefit.
At Pitcher Partners we are all about creating opportunity for our clients, acting as your trusted advisor and providing counsel and insights to assist you to take the next step.