Think Narrow Minded - Bendi
Ads
News service and business centre for materials handlingHOME
/lynad/news_adclick.asp?assid=19992/lynad/news_adclick.asp?assid=19993/lynad/news_adclick.asp?assid=19994/lynad/news_adclick.asp?assid=19995/lynad/news_adclick.asp?assid=19996
Ads
6495

Growth limited by cash flow crisis


Thursday, 4 Dec 2008 ( #389 ) - Brisbane, Queensland, Australia
Local News Story
Business investment into 2009 will be seriously affected by current cash flow pressures.
Business investment into 2009 will be seriously affected by current cash flow pressures within the Australian industry.

According to a new national business survey conducted by the Australian Industry Group and American Express, only 12% of Australian businesses are prepared to take on above-average or significant financial risk to grow their company over the next six months.

Small, medium and large-scale enterprises cited cash flow difficulties, profit margin downgrades, and uncertainty over tax breaks as their key concerns.

"Regardless of business size, managers have major concerns about the impact of the worsening economic conditions on cash inflows from sales. In turn, they are apprehensive about the effect of a slowing economy on their overall cash flow outlook and their ability to pay their bills on time," says Australian Industry Group chief executive Heather Ridout.

As a result, companies are focusing on a more aggressive approach to pursuing accounts receivable; cutting back on expenses; exerting greater control over spending and delaying expenditures where possible.

"While these strategies are sensible, and indeed may be essential for each individual business, they point very clearly to one of the ways the slowdown is likely to spread across the economy. With businesses tightening and delaying their own expenditures – both in response to and in anticipation of reduced receipts – an ongoing reduction in confidence and the expectation of a slowdown can quickly become self-fulfilling," says Ridout.
Discuss Forkliftaction.com News stories in the Discussion Forums!
 
x
©Forkliftaction.com
Forkliftaction Media Pty Ltd
PO Box 1439
Milton QLD 4064
Australia
Contact Forkliftaction.com
About Forkliftaction
The Forkliftaction Team
Privacy Policy
Site Map
Help
Business Directory
Discussion Forums
Industry News
Events Calendar
Jobs & Resumes
Photo Galleries
Blog articles
Our Bloggers

Industry Brands
Company Index
Regions & Countries
Machinery-onQ.com

Advertise on Forkliftaction
Editorial Features / Calendar
Featured Businesses
Past News Editions
Industry Associations
Storing your login information automatically.

When you select the 'Remember me' option, your login information will be stored on your computer in the form of a cookie. When you visit Forkliftaction.com again, the stored login information will be retrieved automatically and you will not have to submit your login parameters (email address and password) each time you want to visit our members-only pages.

A cookie is a small piece of data that is sent to your browser from a web server and stored on your computer's hard drive. A cookie can't read data off your hard disk or read cookie files created by other sites. Cookies do not damage your system.

x