Coronavirus: business ventures sinking despite lifelines

Businesses are struggling to stay afloat despite rescue packages proffered by the government to ride out the coronavirus crisis.

Australian Industry Group chief executive Innes Willox says the broader and longer the lockdown went, the greater the economic damage. Picture: AAP

The Australian Industry Group says sales and orders have dropped dramatically since the coronavirus outbreak, with businesses struggling to break even.

New data from the group shows more than 40 per cent of businesses have experienced reduced demand from customers, with just 10 per cent reporting ­increased demand since the outbreak of the coronavirus.

Ai Group chief executive Innes Willox said the broader and longer the lockdown went, the greater the economic damage.

“The longer this goes on, the harder the rebuild will be. Clearly, too, the broader the lockdown, the greater the economic damage,” he said on Monday.

“As activity and cashflows dry up, many more businesses will have to make hard decisions on staff and investments.”

The group surveyed its members over the final two weeks in March and asked them how their businesses were managing the pandemic and what could be of ­assistance when formulating their response.

At the top of businesses’ wishlist was more clear and concise information from the government, with almost 50 per cent of businesses calling for clear instructions and rules. Another 48 per cent wanted more information.

One in three businesses said they needed financial assistance, while 9 per cent of those surveyed said they would like improved ­access to personal protection equipment and hygiene products.

“The impacts to date are uneven across industries and, so far, more businesses in the industrial sectors of the economy are holding up than in the hardest-hit areas of the services sector such as hospitality, recreation services and, of course, tourism and education,” Mr Willox said.

He said the crisis was impacting both large and small businesses and a rethink of the JobKeeper ­allowance and payroll tax relief was warranted.

Other key findings were that one business in every 20 has had to reduce staff numbers, while only 2 per cent were increasing work hours or hiring new staff.

The survey found there had also been a steep rise in workload as a result of new OH&S policies associated with procedures around ­hygiene (34 per cent) and working from home (25 per cent).