I’m here with the COVID-19 business continuity update on Thursday 4th June.
In this brief:
– New stimulus announced
– What HomeBuilder means for your business
– Stimulus can be scaled up
– Other stimulus measures previously announced
New stimulus announced: HomeBuilder
After a lot of speculation in the media, a new federal government stimulus package of up to $688m was announced today. HomeBuilder grants of $25K will be available to eligible homeowners to build or renovate between now and the end of the year.
For detailed information on the package, here’s a link to the FAQs: https://treasury.gov.au/sites/default/files/2020-06/HomeBuilder_Frequently_asked_questions.pdf
What it means for your business
The businesses that will directly benefit from this package are new build trades. However, that will flow on to benefit other businesses outside of that sector.
I wrote back on 30th April about the heightened risk of competitors entering your target market and undercutting your pricing to try to win work from your clients or prospects.
For those in construction and trade-based industries, this stimulus package is likely to attract those competitors back to the new build market (particularly the volume build sector) and keep them out of maintenance work and other areas of these industries such as insurance work.
I have heard from contacts in the volume build sector that their market is doing ok, so this stimulus will top up the industry and provide stability over the next 6 months.
Stimulus can be scaled up
Another key point to note is that this stimulus measure has been designed to scale up if necessary. While the package is relatively small and has a narrow scope at this stage, we could reasonably expect they will review the requirement for more as time goes on.
The HomeBuilder grants are for new builds and renovations only, which means it can’t be used for pools or sheds (or landscaping we doubt). However, it’s quite likely that if someone had budgeted for a build or renovation, a $25K free kick could entice them to consider a pool or new deck with the extra money they have kept in their pocket.
Other stimulus measures previously announced
I want to remind you of the other stimulus measures that have already been announced that are more geared towards businesses that operate in the B2B, commercial and civil works sectors:
$1.8b Federal government funding for road and local infrastructure upgrades, and
$2.7b Victorian government stimulus package, which includes:
~ $1.18b for capital works, upgrades, modifications and maintenance for education infrastructure;
~ $500m for social housing builds and improvements;
~ $1.02b for capital works and improvements for roads and transport, tourism, CFA/SES & other works.
Your business coaches and I will continue to be looking out for further opportunities for Tenfold client businesses.
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching