I’m here with the COVID-19 business continuity update for today, Friday 17th April.
In today’s briefing:
1. The other side of COVID-19
On 1st April I wrote about the three stages of this event. The first stage was ‘Weathering the Storm’ and, boy, what a stormy month it has been. I believe we are now shifting into stage 2, which is ‘Adjusting to the New Norms’. More on what you need to do to survive and thrive in this stage. The third stage is ‘Preparing for the Uplift’. Today I want to highlight an announcement from yesterday.
In the Prime Minister’s press conference yesterday, 16th April, we heard a few key messages that point to a positive outlook:
- There are fewer reported cases of coronavirus (in Victoria, there was only one new case yesterday)
- Restrictions could be eased next month, as early as mid-May
- The focus is starting to shift to how to turn the economy around.
This last point was loud and clear when the PM said cabinet will be looking at “very pro-growth” policies to “super-charge” the post-virus economy.
I think it’s worth noting that the government financial support to date has been directed to protecting jobs and keeping businesses alive. Future stimulus packages are likely to be directed to stimulating the economy and driving growth.
Australian governments have a history of investing heavily in construction as a means of revitalising the economy after significant events. Many of us business owners will remember the massive investment to propel the economy out of the GFC slump.
As a reminder, the government poured almost $15 billion into new building works for schools – every school got a new hall or gym and more. They also invested $6.6 billion in building 20,000 new homes for public and community housing. Another $890 million went to fixing regional roads and blackspots, installing railway boom gates and for regional and local government infrastructure. That’s over $22 billion dollars invested in the construction sector.
Nev Power, former CEO of Fortescue Metals Group, who is spearheading the COVID-19 coordination commission has already indicated that boosting the manufacturing sector will be a focus.
There are 3 main advantages I see for Tenfold clients:
1. Lots of financial stimulus will flow – if you’re well positioned, you’ll be able to take advantage of it.
2. Construction will be the lever the government uses to provide a significant amount of stimulus to the economy (as they have after previous downturns) – this will assist the many associated businesses ready to scale.
3. The manufacturing sector will be encouraged like it hasn’t been in the past, watch for initiatives that highlight its preferential status – the opportunities will be in food and beverage, along with medical and pharmaceutical manufacturing. (Also look out for the flow on effects: logistics, maintenance, secondary and supporting services and suppliers.)
We know some businesses out there won’t survive the stages of “Weathering the Storm” or “Adjusting to the New Norms”; they’ll either run out of cash or run out of the will to keep going. However, for business owners who prepare and, where necessary, remodel their business, the opportunities will be immense. At Tenfold Business Coaching, we’re working with you to get you prepared.
Have a good weekend and I hope you get plenty of time to relax.