Productivity & Innovation vital for Australian growth
Last week I attended the annual AICD Economic Update in Sydney. Whilst the overall review of the global state of play, including central bank debt levels, household debt serviceability and prospects for inflation pushing interest rates up, to me the key item discussed was where was Australia’s future economic growth going to come from?
What I gleaned from the presentation and following discussion was that we are unlikely to see another significant growth run coming from commodities, or an cyclical boom such as housing or infrastructure. The main opportunity remaining is for Australian businesses to be more innovative and productive in supplying to and servicing the much heralded middle-class expansion of Asia, and potentially also Africa. However, for the most part the industries that will be most demanded by these markets (food, education, professional services) are already well established and despite our apparent advantages to supply, in order to compete in the rush to profit from this obvious marketplace, we must put a major focus on how innovative the products and services we supply are, and how productively our businesses can get those products and services to market.
This theme certainly struck accord with those on my table, and the broader audience it seemed, albeit with a murmuring of comments about productivity already being max’ed at an individual level and innovation being painful and long-winded.
Personally, I couldn’t agree more with these two levers being key to Australian success, both are very close to our heart and a key element in several of the consulting and coaching programs we deliver. We will continue to address both these issues in our on-going article series, and later this year will host an industry forum to engage in frank discussion of how both these areas can be engaged with most effectively.
If you have any comments on the areas of innovation and productivity as growth opportunities for Australia I’d love to hear them, or any specific questions about how 4iGroup could help you to develop your business, give me a call o 02 9119 1109.
All the best,
Tim
