2020 CEO Survey: Mark Steinert, Stockland

We have a once in a lifetime opportunity to drive innovation and investment in new industries, says Stockland chief Mark Steinert.

What are the three enduring lessons or changes to flow from COVID-19?

COVID-19 and digital has accelerated changes and trends that would otherwise have taken a decade or more to come into effect, which demands agility and focus on what really matters to win. I think this is the key lesson – societies and circumstances can change extremely quickly in a digitised world when provided with clarity and empathy.

COVID-19 has accelerated a permanent shift in people’s expectation of the role of the workplace and this has flow on effects for our CBDs. Our cities will continue to be the primary drivers of economic activity but there will be a rebasing, it will take some time for them to get back to previous levels – and they will likely look different. The rise in economic and social activity in our suburbs in this environment has also been a trend to watch, as people prioritise family, health and wellbeing in the new normal.

The formation of National Cabinet and the more reflective collaboration between state and federal governments has been one of the pandemic’s “silver linings” and this should certainly continue post pandemic. Business should take a similar approach in areas which are not part of a companies USP.

The other key lesson and opportunity is to make sure we invest more in growing industries and encourage new businesses to establish in Australia by aligning pragmatic learning with growth industries. Many onshore advanced manufacturing opportunities have arisen this year and we need to make sure we’re capitalising on this.

How would you rate the shape of the Australian economy as we head into the new year?

I’m an optimist but I genuinely think Australia is one of the best places in the world to be right now and this will continue to be the case in 2021. Given all that’s happened, I think our economy is looking reasonably resilient and it was very pleasing to see a return to growth in the last quarter. State and federal governments have done an excellent job keeping people safe while keeping the economy afloat with targeted, effective and significant stimulus, including HomeBuilder which has been a critical boost for the housing construction sector which employs over 1 million Australians. Our deficit is low by global standards and manageable given our economic growth potential and low interest rates – and importantly it will improve productivity and ultimately drive jobs, growth and debt repayment capacity.

What three reforms are needed to sustainably grow the economy?

Holistic tax reform. I’m on the record supporting this and we welcome the NSW government’s announcement that it will undertake significant tax reform, including a review of stamp duty. Stamp duty has been widely acknowledged as an inefficient tax that hinders affordability, creating a barrier to home ownership, job mobility and downsizing, and a contributor to the under-utilisation of housing stock. We strongly support the new business investment allowance and the bring-forward of Stage 2 tax concessions, which will reduce cost of living pressures, and support consumer spending enhanced business investment.

A continued focus on job retention and creation, and aligned training – and it was good to see the focus on this in the recent budget. The $1.9bn Modern Manufacturing Strategy and $1.2bn new apprentice wage subsidy will provide a backbone for economic recovery, creating thousands of new jobs through a pivot into new industries and technologies. Targeted stimulus like the HomeBuilder scheme has also help give companies like Stockland the confidence to continue investing, driving jobs and growth, and this will remain critical through the recovery.

Further removal of red tape – we’ve made some headway here but it needs to be a continued priority at both state and federal level. We have a once in a lifetime opportunity to drive innovation and investment in new industries and we must lift the barriers and open the economy enough to support this. Planning reform including aligned development of infrastructure and development land and further removal of other unnecessary and costly regulation will fast track projects and stimulate construction, unlocking jobs and economic growth.

What are the three best growth opportunities for your company in 2021?

Expanding our communities business to provide essential and affordable housing, including our new land lease business and townhomes.

Building our Logistics and Business Parks portfolio by progressing our high-growth development pipeline, and using the lessons of 2020 to drive an increased focus on our customers particularly in retail town centres. Whether it’s last mile solutions for retail, smart features in homes or a change in the way we design our workplaces, COVID-19 has fast tracked trends that would have otherwise taken years and companies that can respond to this change quickly will see the greatest success.

5-What impact will digital transformation have on your company

Digital transformation and investing in digital solutions is a huge focus for us and the big opportunities lie in customisation, AI and big data. We launched a new digital systems platform this year and will continue investing heavily in this to refine both the system and the way we use it. The results are compelling – 80 per cent of all inquiry in our residential communities business now comes online, our live chat initiative launched in FY20 and drove $50m of revenue for the year, and you can now buy a Stockland house and land package completely online if you want to. Deep data analytics and real time analysis is redefining our customer experience proposition. The 5G rollout in 2021 will exponentially accelerate digital solutions to customer opportunities.

How would you rate business, state and federal government performance this year?

Given everything that’s happened – and the fact that none of us could have prepared adequately for it – I think our governments and businesses have demonstrated the importance of partnerships and pragmatism to work through a crisis. Australia has always been a fantastic place to live, with a stable political system and lifestyle and opportunities that are attractive to many people from across the globe. Now more than ever, we look like paradise!

We do need to work out how to safely keep borders open though – this is absolutely critical to enable economic growth domestically and also really important for families, small businesses and society more broadly.