Only 8% of Australasian respondents say that capital preservation is receiving the most attention, which has halved since October of last year.
The positive sentiment in our local market and the broader global economy is showing a shift in businesses capital agenda. More executives are now focused on investing, where preserving and raising are taking a back seat.
Different sector, different capital agenda
Only 8% of Australasian respondents say that capital preservation is receiving the most attention, which has halved since October of last year.
Despite the growing momentum around growth, operational efficiency and cost reduction are still high on the agenda. This is a positive sign that Australasian businesses are taking the lessons learnt from the downturn and incorporating them into good business practices.
Survival is my biggest focus over the next 6 months
Variation across industries
This capital confidence barometer saw a significant increase in Australasian manufacturing respondents, and results show the industry is struggling.
| 54% |  | of manufacturing respondents are focused on survival, skewing the total response for our area up to 18% this April. |
On which of the following capital management issues is your company today placing the most attention and resources?
The manufacturing sector is being hit by weak consumer confidence in most major export markets, a strong Australian dollar and rising interest rates. Unfortunately, all three issues look set to continue well into 2011.
Those sectors seen to be under the most pressure include the textile, clothing and footwear sector (a victim of falling retail sales and competition from cheap imports), the base metals sector (which is exposed to rising commodity prices) and the machinery and equipment sub-sector.
Conversely the mining sector in Australasia continues to boom with 100% of respondents focusing on growth (inorganic and organic) rather than raising or preserving.
Australasia: which of the following aspects of your business do you expect will receive increased attention over the next 12 months as a result of the economic situation?
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