Current Business Trends in Brisbane
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<strong>Current</strong> <strong>Bus<strong>in</strong>ess</strong> <strong>Trends</strong> <strong>in</strong> <strong>Brisbane</strong><br />
<strong>Current</strong> <strong>Bus<strong>in</strong>ess</strong> Trend <strong>in</strong> <strong>Brisbane</strong><br />
Charlotte Snow<br />
Griffith University, <strong>Brisbane</strong><br />
Key Terms: <strong>Bus<strong>in</strong>ess</strong> Trend <strong>in</strong> <strong>Brisbane</strong>, Economic Trend, <strong>Bus<strong>in</strong>ess</strong> Performance <strong>in</strong> 2018<br />
Introduction:<br />
<strong>Brisbane</strong>, the capital of the Australian state of Queensland is accord<strong>in</strong>g to Dun & Bradstreet Global Risk<br />
Indicator, one of the safest cities for <strong>in</strong>vestment not only <strong>in</strong> Australia but also across the world. <strong>Brisbane</strong><br />
is by far amongst the strongest and the major bus<strong>in</strong>ess hubs <strong>in</strong> Australia.<br />
With the reputation of a top performer, <strong>Brisbane</strong> is outsh<strong>in</strong><strong>in</strong>g the others with untraceable speed. Not<br />
only the top notch Australian companies, but also the many em<strong>in</strong>ent International companies have their<br />
offices located with<strong>in</strong> the territory of <strong>Brisbane</strong> mak<strong>in</strong>g it a common Economic zone for the countries<br />
around the world.<br />
Along with far reach<strong>in</strong>g bus<strong>in</strong>esses, DHL Global's Oceanic distribution warehouse as well as the Asia<br />
Pacific Aerospace's headquarters is also located <strong>in</strong> <strong>Brisbane</strong>, mak<strong>in</strong>g it the centre of focus not only for<br />
Australia, but other countries as well. The <strong>in</strong>ternationalisation of the economy along with the<br />
abundantly available pool of regional talent, competitive nature of the economy and collaborative<br />
bus<strong>in</strong>ess culture provides <strong>Brisbane</strong> a strong hold on the economic environment and conditions which<br />
are favourable for its growth and development, allow<strong>in</strong>g it to outperform other economies of the world.<br />
With its progressive approach and far-sighted bus<strong>in</strong>ess vision, <strong>Brisbane</strong> has ga<strong>in</strong>ed the confidence of the<br />
<strong>in</strong>vestors, mak<strong>in</strong>g them believe that <strong>in</strong>vest<strong>in</strong>g here will help them <strong>in</strong> their quest to <strong>in</strong>crease return on<br />
<strong>in</strong>vestment. T<br />
he roots of this confidence uprise from the political stability, its controlled population growth rate and<br />
committed private and public sector directed towards build<strong>in</strong>g a stronger and impactful capital base.<br />
Apart from all the above add<strong>in</strong>g to the successful economic results, many of its home grown companies<br />
are not unknown on the <strong>in</strong>ternational platform. Some of these are Virg<strong>in</strong> Australia, Boe<strong>in</strong>g Australia,<br />
Suncorp-Metway Limited, Krome Studios, Thiess Pvt Ltd.<br />
Accord<strong>in</strong>g to Canstar, as of May this year, there were more than 2.1 million bus<strong>in</strong>esses trad<strong>in</strong>g <strong>in</strong><br />
Australia. Add to this reports that new bus<strong>in</strong>esses (particularly start -ups) have the capacity to<br />
contribute a further $100 Billion to the economy and generate more than half a million jobs by 2033.<br />
In other words, those <strong>in</strong> the know have opportunities galore for you to own. So, what about those<br />
bus<strong>in</strong>ess trends?<br />
Economic trends
Australia rema<strong>in</strong>ed steadfast dur<strong>in</strong>g one of the most turbulent periods of global modern economics,<br />
demonstrat<strong>in</strong>g remarkable resilience. Dur<strong>in</strong>g the worst of the global f<strong>in</strong>ancial crisis, Australia ma<strong>in</strong>ta<strong>in</strong>ed<br />
strong growth, outpac<strong>in</strong>g all other advanced economies and secur<strong>in</strong>g a 22nd consecutive year of<br />
recession-free growth <strong>in</strong> 2013. The Queensland economy has consistently demonstrated above-average<br />
growth, grow<strong>in</strong>g at an average annual rate of 4 per cent real gross state product <strong>in</strong> 2016-17, 2.5 per cent<br />
above the Australian average<br />
Dun & Bradstreet Global Risk Indicator rates Australia as one of the safest countries <strong>in</strong> the world for<br />
<strong>in</strong>vestment. The cont<strong>in</strong>ued <strong>in</strong>ternationalisation of the <strong>Brisbane</strong> economy, comb<strong>in</strong>ed with a local pool of<br />
talent and a collaborative bus<strong>in</strong>ess culture, provides a strong, competitive environment for <strong>Brisbane</strong>’s<br />
economy to cont<strong>in</strong>ue to outperform its neighbours. <strong>Brisbane</strong>’s progressive and far-sighted bus<strong>in</strong>ess and<br />
economic environment gives <strong>in</strong>vestors more confidence <strong>in</strong> their quest to optimise <strong>in</strong>vestment return.<br />
This confidence is built around <strong>Brisbane</strong>’s stable political environment, its proven and forecast<br />
population and economic growth, and ongo<strong>in</strong>g public and private sector commitment to build<strong>in</strong>g a<br />
stronger economy and <strong>in</strong>tellectual capital base. Australia’s economic growth rema<strong>in</strong>s solid, with the<br />
resources sector benefit<strong>in</strong>g from Ch<strong>in</strong>a’s economic stimulus, a related jump <strong>in</strong> commodity prices and<br />
state governments spend<strong>in</strong>g up on <strong>in</strong>frastructure<br />
Local Economy<br />
<strong>Brisbane</strong> is a major hub for large resource and energy companies, a global hub for the m<strong>in</strong><strong>in</strong>g,<br />
equipment, technology and services (METS) sector, a significant centre for research and <strong>in</strong>novation, and<br />
the eng<strong>in</strong>e room of much of Queensland’s cont<strong>in</strong>ued economic growth. The city’s $146 billion economy<br />
(Source: <strong>Brisbane</strong> City Council - Key Economics Fact 2016) is predicted to grow to more than $217 billion<br />
by 2031, hav<strong>in</strong>g been a key driver of the Australian economy as it enters its 26th year of cont<strong>in</strong>uous<br />
growth<br />
<strong>Bus<strong>in</strong>ess</strong>es trend of 2018<br />
Thanks to advances <strong>in</strong> technology consumers are expect<strong>in</strong>g more than ever from bus<strong>in</strong>esses. Nowhere is<br />
this more prevalent than <strong>in</strong> the area of customer experience. If your bus<strong>in</strong>ess fails to keep up with the<br />
latest trends you could w<strong>in</strong>d up los<strong>in</strong>g out to a competitor.<br />
Over the last few months, there has been a lot of talk about what we can expect to be trend<strong>in</strong>g next<br />
year <strong>in</strong> the experience design and management <strong>in</strong>dustry. Now that there are so many options to give a<br />
little more to their customers, bus<strong>in</strong>esses refus<strong>in</strong>g to utilise any of the available technology are really<br />
putt<strong>in</strong>g themselves beh<strong>in</strong>d the competition.<br />
Customers expect a great experience at all touch po<strong>in</strong>ts, <strong>in</strong>clud<strong>in</strong>g awareness on social media, the<br />
transaction itself, and afterward. Successful bus<strong>in</strong>esses understand that it’s more time consum<strong>in</strong>g and<br />
costly to attract new clients, than it is to ma<strong>in</strong>ta<strong>in</strong> exist<strong>in</strong>g ones. Unfortunately, some bus<strong>in</strong>esses are<br />
simply too large to remember all of their clients by name, and it can be difficult to ma<strong>in</strong>ta<strong>in</strong> contact with<br />
their client base. However there are many digital platforms to make your own, for the purpose of<br />
ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g awareness with your clients, and the options grow frequently.
With this <strong>in</strong> m<strong>in</strong>d, a number of new methods and technology platforms have emerged and will be<br />
shak<strong>in</strong>g up the <strong>in</strong>dustry <strong>in</strong> 2018. Here is a list of what they are:<br />
1. Speech self service<br />
This year, we have seen a lot of ads about the latest Google device that responds to your voice<br />
commands. Google Home is really mak<strong>in</strong>g <strong>in</strong>roads <strong>in</strong>to our domestic situations. It still feels odd to ask<br />
the device out loud to turn on the lights and music, but I have heard that children are already us<strong>in</strong>g it for<br />
their homework assignments. Clearly they are not shy and <strong>in</strong> time, neither will we be, as the technology<br />
cont<strong>in</strong>ues to get smarter.<br />
2. Digital Privacy and Safety<br />
Just because they share their entire life on social media, this doesn’t mean that Gen Y is not concerned<br />
about safety measures onl<strong>in</strong>e. In fact, quite the opposite is true. The digital rights and governance group<br />
at the University of Sydney conducted a survey of 1,600 people and found that the majority of people <strong>in</strong><br />
their 20s and 30s were most concerned. Onl<strong>in</strong>e platforms like FortKnoxster are tak<strong>in</strong>g advantage of<br />
blockcha<strong>in</strong> technology, decentralized storage, and advanced encryption, and creat<strong>in</strong>g potential solutions<br />
to help protect user safety as it becomes more important.<br />
3. Hollywood Technologies<br />
I call these Hollywood Technologies because the very abilities we have seen <strong>in</strong> the movies are f<strong>in</strong>ally<br />
mak<strong>in</strong>g their appearance. Passwords will become a th<strong>in</strong>g of the past as we start to see voice pr<strong>in</strong>t as<br />
identification and with biometrics embedded <strong>in</strong>to hand held devices, like iris scann<strong>in</strong>g and face<br />
recognition. One company (Prellis Biologics) can now pr<strong>in</strong>t organs on demand with a 3D pr<strong>in</strong>ter. What<br />
was once the realm of sci-fi is now real.<br />
4. Blockcha<strong>in</strong><br />
A major ma<strong>in</strong>stream credit card company is already us<strong>in</strong>g blockcha<strong>in</strong>, a more secure and transparent<br />
method to pay, as it is said to be a more efficient method of pay<strong>in</strong>g. It also removes the need to swipe a<br />
credit card. MasterCard’s blockcha<strong>in</strong> operates <strong>in</strong>dependently of a cryptocurrency, and <strong>in</strong>stead accepts<br />
payments <strong>in</strong> local currency.<br />
5. Artificial Intelligence
Artificial Intelligence is becom<strong>in</strong>g more ma<strong>in</strong>stream and bus<strong>in</strong>esses are star<strong>in</strong>g to utilise it. We built a<br />
basic chat bot utilis<strong>in</strong>g an AI platform <strong>in</strong> just a week and a half. The great th<strong>in</strong>g is that no longer are large<br />
enterprises lead<strong>in</strong>g the way – anyone can be <strong>in</strong>volved. Companies are now mak<strong>in</strong>g their AI tools<br />
accessible and easy to use, so we will see more experimentation and <strong>in</strong>novation from smaller<br />
bus<strong>in</strong>esses..<br />
<strong>Brisbane</strong>’s Performance<br />
It is not an unknown fact that Australia has ma<strong>in</strong>ta<strong>in</strong>ed commendable stability and has rema<strong>in</strong>ed<br />
steadfast <strong>in</strong> every challeng<strong>in</strong>g as well as turbulent situation compos<strong>in</strong>g itself with remarkable resilience.<br />
Dur<strong>in</strong>g the global f<strong>in</strong>ancial crisis, <strong>Brisbane</strong>’s economy rema<strong>in</strong>ed unaffected unlike other advanced<br />
economies of the world, help<strong>in</strong>g Australia to ma<strong>in</strong>ta<strong>in</strong> a strong growth and achiev<strong>in</strong>g the 22nd<br />
consecutive year of recession free performance and growth.<br />
For long, its economic growth has been fuelled by migration of people com<strong>in</strong>g <strong>in</strong>to <strong>Brisbane</strong> from mostly<br />
Southern states attracted by the employment opportunities available. With consistent economic<br />
structure and manufactur<strong>in</strong>g services as a primary <strong>in</strong>come generator along with specialisations <strong>in</strong><br />
<strong>in</strong>dustries such as Agriculture, M<strong>in</strong><strong>in</strong>g and other bus<strong>in</strong>ess services has to a great extend helped <strong>Brisbane</strong><br />
achieve its present growth.<br />
Along with this, there has been an evolution <strong>in</strong> the field of <strong>in</strong>tensive knowledge oriented services,<br />
government policies and <strong>in</strong>vestment along with boom of resources has helped <strong>Brisbane</strong>’s economic<br />
growth. <strong>Brisbane</strong> is also the centre of concentration of white collar <strong>in</strong>dustries which <strong>in</strong>cludes the<br />
Information Technology Sector, F<strong>in</strong>ancial services, public sector adm<strong>in</strong>istration which is concentrated<br />
around the central bus<strong>in</strong>ess district of <strong>Brisbane</strong> along with many recently developed and established<br />
office areas.<br />
Blue-collar services such as petroleum ref<strong>in</strong><strong>in</strong>g, stevedor<strong>in</strong>g, paper m<strong>in</strong><strong>in</strong>g, QR railway workshops which<br />
are located along the <strong>Brisbane</strong> River runn<strong>in</strong>g along the new <strong>in</strong>dustrial zone have provided the required<br />
boost to the economy along with tourism which is an equally important part of <strong>Brisbane</strong>’s economy <strong>in</strong><br />
its own <strong>in</strong>dividual capacity and as an access passage to the other areas of Queensland.<br />
Further, it is of importance to add that irrespective of the on-go<strong>in</strong>g strength of the Australian dollar,<br />
<strong>Brisbane</strong> <strong>in</strong>dividually has managed to <strong>in</strong>crease its export volumes <strong>in</strong> 2010-2013, where more than 70<br />
percent of the exports were shipped to the Asian region. It further aims to s<strong>in</strong>gle-handedly embrace the<br />
global onl<strong>in</strong>e market with the release of its digital strategy framed to capitalise 20 trillion dollars by<br />
which it will be able to double the number of the local bus<strong>in</strong>ess engaged <strong>in</strong> the sell<strong>in</strong>g of goods and<br />
services.<br />
New <strong>Trends</strong> <strong>in</strong> <strong>Bus<strong>in</strong>ess</strong><br />
The Rise of Subject Matter Experts<br />
The long held practice of rely<strong>in</strong>g on subject matter experts <strong>in</strong> the B2B (bus<strong>in</strong>ess to bus<strong>in</strong>ess) space is<br />
pick<strong>in</strong>g up steam <strong>in</strong> the broader bus<strong>in</strong>ess world. Now more than ever bus<strong>in</strong>esses of all sizes are
ensur<strong>in</strong>gthat there are def<strong>in</strong>itive experts <strong>in</strong>volved <strong>in</strong> their strategy and sales plann<strong>in</strong>g. Such experts help<br />
the bus<strong>in</strong>ess consider the actual facts of the product and <strong>in</strong>dustry – this <strong>in</strong> turn m<strong>in</strong>imises confusion and<br />
reduces gaps <strong>in</strong> communication.<br />
Video is Essential<br />
This trend has been grow<strong>in</strong>g, and grow<strong>in</strong>g, for the past few years. YouTube has reached a po<strong>in</strong>t where it<br />
has a subscription service and Facebook prizes video over all else; this is the platform all bus<strong>in</strong>esses<br />
need to use <strong>in</strong> one way or another to communicate with customers and even staff <strong>in</strong> today’s bus<strong>in</strong>ess<br />
environment.<br />
The Millennial Status Quo<br />
It turns out that tech isn’t the only force redef<strong>in</strong><strong>in</strong>g the workforce – Millennials are mak<strong>in</strong>g their own<br />
waves, and as of 2017 they will be the new normal. Inc tells us that the needs of this grow<strong>in</strong>g cohort of<br />
young professionals will change the what and how of bus<strong>in</strong>esses of all sizes.<br />
Retail <strong>Bus<strong>in</strong>ess</strong> <strong>Trends</strong><br />
The Excit<strong>in</strong>g World of Retailment<br />
Retailment is the next era of real world shopp<strong>in</strong>g – stores are go<strong>in</strong>g out of their way to create unique<br />
shopp<strong>in</strong>g experiences that play off their brand’s strengths and <strong>in</strong>to the wait<strong>in</strong>g hands of eager<br />
consumers.<br />
Small Is In<br />
A fun size take on classic retail outlets that offers an easy-access variant of the standard store-front with<br />
a focus strictly on the items we buy most. Everyone from IKEA through to L<strong>in</strong>craft and Target are ey<strong>in</strong>g<br />
this concept as a way forward. This, alongside retailment, creates opportunities for those with a solid<br />
understand<strong>in</strong>g of consumer trends and visual merchandis<strong>in</strong>g.<br />
Australia’s International <strong>Bus<strong>in</strong>ess</strong> Survey 2018<br />
Australia’s International <strong>Bus<strong>in</strong>ess</strong> Survey 2017 (AIBS 2017) is the fourth <strong>in</strong> a series of studies of<br />
Australia's <strong>in</strong>ternational bus<strong>in</strong>ess activity. Commissioned by the Export Council of Australia (ECA) with<br />
the support of Austrade, Efic (Export F<strong>in</strong>ance and Insurance Corporation) and UTS <strong>Bus<strong>in</strong>ess</strong> School, AIBS<br />
2017 was conducted by amr Australia between April 2017 and May 2017.<br />
AIBS 2017 reflects the op<strong>in</strong>ions of 941 firms from 19 sectors undertak<strong>in</strong>g <strong>in</strong>ternational activities <strong>in</strong> more<br />
than 90 overseas markets.<br />
Analysis of key survey f<strong>in</strong>d<strong>in</strong>gs is available from the Economics at Austrade blog.<br />
AIBS 2017 provides detailed <strong>in</strong>formation on:
i. the demographics of participat<strong>in</strong>g bus<strong>in</strong>esses <strong>in</strong>clud<strong>in</strong>g size, experience and the role of<br />
<strong>in</strong>ternational earn<strong>in</strong>gs<br />
ii. the nature of bus<strong>in</strong>esses’ engagement with the global economy, <strong>in</strong>clud<strong>in</strong>g trade, <strong>in</strong>ward and<br />
outward <strong>in</strong>vestment, R&D and other activities as well as the markets <strong>in</strong> which they earn their<br />
highest revenues<br />
iii. the profiles of goods and services exporters to FTA markets, <strong>in</strong>clud<strong>in</strong>g the mode of delivery of<br />
services exports and the nature of the barriers faced<br />
iv. the reasons why companies are not engaged <strong>in</strong> <strong>in</strong>ternational activity and the most valued forms<br />
of support for companies to start explor<strong>in</strong>g <strong>in</strong>ternational activity<br />
v. the outlook for their <strong>in</strong>ternational operations and views on the impact of key <strong>in</strong>ternational<br />
events compris<strong>in</strong>g the US presidential elections and the UK vote for Brexit<br />
Austrade <strong>in</strong>vites Australian organisations that are undertak<strong>in</strong>g <strong>in</strong>ternational bus<strong>in</strong>ess activities to share<br />
their <strong>in</strong>sights and experiences <strong>in</strong> Australia’s International <strong>Bus<strong>in</strong>ess</strong> Survey (AIBS).<br />
Now <strong>in</strong> its fifth year, the AIBS collects <strong>in</strong>formation about the challenges, opportunities and issues faced<br />
by companies of all sizes and across all <strong>in</strong>dustries as they engage <strong>in</strong> global trade. The survey is one of the<br />
largest studies of its k<strong>in</strong>d <strong>in</strong>to Australia’s <strong>in</strong>ternational bus<strong>in</strong>ess behaviour.<br />
The results will provide a deeper understand<strong>in</strong>g of the bus<strong>in</strong>ess, regulatory and market issues that your<br />
company must navigate, the support you need to succeed, and the outlook for your operations.<br />
The survey takes 20 m<strong>in</strong>utes to complete and <strong>in</strong>dividual results are confidential. Austrade’s survey<br />
partners are the Export Council of Australia (ECA) and the Export F<strong>in</strong>ance and Insurance Corporation<br />
(Efic).<br />
By participat<strong>in</strong>g <strong>in</strong> the AIBS, you are eligible to receive a discount on ECA membership and a copy of the<br />
2018 survey report. In addition, you can attend an exclusive web<strong>in</strong>ar where Austrade’s Chief Economist<br />
Mark Thirlwell along with the chief economists of Austrade’s survey partners will analyse the results of<br />
the AIBS and provide you with economic <strong>in</strong>sights on trends <strong>in</strong> global trade.<br />
Conclusions<br />
<strong>Brisbane</strong> has some of the strongest economic prospects <strong>in</strong> the world of the developed countries. The<br />
demand for the city’s natural resources has brought <strong>Brisbane</strong> to an enviable position. Due to its<br />
position<strong>in</strong>g it is able to capitalise on its present position of strength and consequently an estimated<br />
growth of 6 percent <strong>in</strong> 2015-16 is not an impossible target. Further, it should not be left unnoticed that<br />
the Queensland State Government has been determ<strong>in</strong>ed towards develop<strong>in</strong>g science and technology<br />
<strong>in</strong>dustries not only <strong>in</strong> Queensland but also <strong>in</strong> the cities that compose it, <strong>in</strong> particular <strong>Brisbane</strong> as a part of<br />
its ‘Smart State’ development <strong>in</strong>itiative. Along with this, the government has made a big <strong>in</strong>vestment <strong>in</strong><br />
the establishment of various biotechnology, research and analysis facilities <strong>in</strong> many of the prestigious
universities <strong>in</strong> <strong>Brisbane</strong> with a motive to help ma<strong>in</strong>ta<strong>in</strong> the swift development and progress of its<br />
economy. Some of these Institutes are The Institute for Molecular Bioscience, Sa<strong>in</strong>t Lucia Campus and <strong>in</strong><br />
respect of its <strong>in</strong>itiative for research and <strong>in</strong>novation the same is currently be<strong>in</strong>g emulated at the<br />
Queensland University of Technology (QUT)<br />
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i. The M<strong>in</strong>d of a Leader, Rasmus Hougaard, Jacquel<strong>in</strong>e Carter<br />
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xxii. https://www.bus<strong>in</strong>ess2sell.com.au/bus<strong>in</strong>esses/qld/brisbane/retail<br />
xxiii. https://www.austrade.gov.au/News/Economic-analysis/Key-publications/australias<strong>in</strong>ternational-bus<strong>in</strong>ess-survey-2017<br />
xxiv. https://www.bus<strong>in</strong>ess2sell.com.au/bus<strong>in</strong>esses/qld/brisbane/fortitude-valley<br />
xxv. https://www.bus<strong>in</strong>ess2sell.com.au/bus<strong>in</strong>esses/qld/brisbane/brisbane-city<br />
xxvi. https://www.bus<strong>in</strong>ess2sell.com.au/bus<strong>in</strong>esses/qld/brisbane/Capalaba<br />
xxvii. https://epress.lib.uts.edu.au/books/creative-bus<strong>in</strong>ess-australia<br />
xxviii. https://www.bus<strong>in</strong>ess2sell.com.au/bus<strong>in</strong>esses/qld/brisbane/Caboolture