Listening to Paul Bloxham at the FACCI (French Australia Chamber of Commerce and Industry) event is becoming an annual event for me. This is the fourth consecutive year I have attended, but it is the thirteenth consecutive year he has delivered to this gathering.

It was good to hear global growth will be maintained, but concerning to hear him say he believes the economy’s productivity ceiling is now 1.8%. His message was clear: the regulatory regime needs to be far more conducive to fostering productivity initiatives. The tax system needs an overhaul, the IR laws need serious attention, and so does federal spending. 

The challenge will be that Australian businesses have a significant load of work to do when the government-mandated regulatory changes he called for are missing.

Paul, like many others, believes Artificial Intelligence (AI) is part of the growth story. He, like me, is still looking for evidence that this investment will deliver appropriate returns. There have been significant shifts in the share market in recent times, with investors concerned that AI will undermine the business models of major SaaS companies such as Microsoft, Salesforce, and Atlassian, after these companies have invested trillions of dollars. There is a serious concern that returns will not manifest.

He concluded with a statement that deeply resonated with me: productivity comes from business, not the government. Australian business needs to lead the way and invest in productivity – and supply chain improvements are a great start. What steps are you looking to take this year that will improve the productivity and profitability of your business?

If you are looking to improve your productivity, and more importantly, profitability, contact us either here or call 1800 319 776.