Had to hold back a strangled cry when you last looked at your insurance costs? Impacts such as the changing climate are already being felt in areas such as home insurance payments. 

“Systematic shocks to insurance, such as climate change, are the most challenging threats to face for both individuals and insurers,” explains Michael Sherris, Professor in the School of Risk and Actuarial Studies, UNSW Business School, and Chief Investigator and Director of Industry Engagement at ARC Centre of Excellence in Population Ageing Research (CEPAR). 

“Insurers need to absorb the impact of shocks such as natural disasters. To do this, they need business models to finance expected and unexpected shocks to ensure they meet their obligations to individuals who have claims because of the shocks.

“But unfortunately, it is the individuals purchasing the insurance who will have to pay for the impact.” 

Prof. Sherris explains why insurance costs are rising, how companies are trying to ‘shock-proof’ the system, and what individuals can do to minimise their insurance costs in the short run.

Why is insurance going to get more expensive?  

Prof. Sherris: The main types of insurance policies for individuals include home and contents, car (comprehensive or third party), life and health insurance.  

Businesses can purchase insurance products for a range of risks, including liability, business interruption, and property and assets.  

All of these are exposed to climate change events (natural disasters such as bushfires or wildfires, or extreme weather events like storms, and floods), and global warming, as well as inflation, and business interruptions such as the COVID-19 pandemic.  

The important feature of inflation and climate-related risks is that these are largely systematic risks. This means they are so pervasive; they cannot be mitigated by risk management or diversifying providers’ insurance and investment portfolios. In short, they are likely to hit many insurance policies and industries at once. 

This means that insurance premiums are certain to increase, it’s just a matter of by how much and when.   

How would insurance costs be impacted by climate change?   

Prof. Sherris: Some insurances will be impacted more than others by climate change, just as some individuals and businesses are impacted more than others. Take, for example, the impact on properties located in flood-prone areas.  

While we have experienced increased floods and bushfires in recent years, climate change impacts are certainly longer term. These could lessen depending on how well we are able to control temperature increases through climate change mitigation: reductions of greenhouse gas emissions and fossil fuel, and other efforts towards sustainability.  

What other factors could make insurance costs more expensive?   

Prof. Sherris: In contrast to climate change, inflation is something that impacts the cost of insurance regularly. It is likely to have a greater impact over coming years: something increased by the fallout from the pandemic.  

Other issues include continuing issues with supply chains. Consider car insurance and the increasing cost for replacement car parts, or home insurance and building materials. 

What issues face the insurance industry? 

Prof. Sherris: The Australian Prudential Regulation Authority (APRA) recently stated that for the insurance industry ‘supply chain disruptions, skills shortages, inflationary pressures and cyber risks are posing challenges within the general sector.’ 

Some of these are shorter term and some – like climate change risks – are longer term. These all add to the uncertainty that insurers must manage, which must be funded from raising premiums, or if through shareholder capital, then providing investors with lower profits and returns. 

They will also impact reinsurance prices that insurers must pay to manage their aggregate risks, since they not only impact Australia but are international pressures on the insurance industry more broadly. 

They place a renewed emphasis for insurers on capital and solvency. Reassuringly, APRA undertook stress tests of the Australian insurers following COVID, finding insurers well positioned to meet commitments to policyholders and minimum capital requirements.   

How is the insurance industry reacting?   

Prof. Sherris: Insurance companies regularly review the cost rating of all its insurance types against factors like expected inflation and the potential impact of climate change. Refining this process to factor in physical risks in relation to the effects of climate change (such as having a home in a bushfire, heat wave or flood-prone area), has resulted in higher costs for many. 

The increase in premiums will lead to an increase in underinsurance – something which is already a concern. Finding ways to spread these systematic risks, and to share the impact on premiums across a wider range of policyholders, is one way to make insurance more affordable for those individuals facing the highest premium increases.  

The Australian Reinsurance Pool Corporation (ARPC) and the recently established Government Reinsurance pool for cyclones and related flood damage are one way that these costs are currently being managed by the insurance industry. 

How will small business react to higher insurance prices?   

Prof. Sherris: Increased insurance premiums will add to the financial pressures that many households in Australia are facing as a result of increasing interest rates, inflation in food prices, increases in energy costs, and more.  

Similarly, when it comes to underwriting (the process of deciding on the conditions of pricing and policy for a customer), companies will have to consider the financial risks, and price accordingly for risk exposure. 

All these affordability pressures are likely to increase the amount of underinsurance in Australia. This is already an issue since higher prices for goods and services usually lead to lower demand. 

Any tips to minimise rising insurance costs?   

Prof. Sherris: There are a few things consumers can do: 

Ask, is it a large or a small risk? When it comes to large risks, such as living in an area prone to sea level rise or flooding, it’s important to have coverage. But the costs can be reduced through a deductible at a level that can be managed.  

When it comes to insurance, consider the cost of coverage and how much risk you can afford to finance from savings. 

Make decisions about insurance coverage and how much risk to take for different types of insurance: You might choose to increase the deductible to reduce the cost of insurance. This might be helpful if you are driving fewer kilometres and can switch to an insurer or a policy which charges premiums based on mileage.  

Review the coverage of all your insurances regularly. How much are you paying, and has it increased over time?  

When renewing insurance, seek several quotes: When it comes to renewing insurance, just like for home loan interest rates, energy plans and mobile phone plans, it’s important to shop around and get multiple quotes. 

You may very well find that moving to another insurer will produce a lower premium since your premiums may have increased if you’ve been with the same insurer for several years. 

Consider a mutual insurer: Although there are very few mutual insurers in Australia, they can sometimes provide a better deal than for-profit insurers since they may not load the premium for profits and returns to shareholders. 

Actionstep, the cloud-based practice management platform for law firms, announces that it has acquired the legal software business, LawMaster. The transaction brings together two innovative practice management software companies serving the needs of mid-market law firms. The combined businesses will drive additional technology investment, consolidate many years of learnings in legal tech and provide existing LawMaster customers with extended cloud technologies.  

The deal combines more than 50 years of pioneering legal tech development and legal sector knowledge. Together, Actionstep and LawMaster provide a scaled legal tech company with plans to further invest in technology specifically for mid-market law firms.   

Actionstep has accelerated its growth in the legal practice market globally with its market leading and powerful cloud-based offering, providing a highly adaptable, all-in-one practice management platform. With almost 20,000 daily subscribers, Actionstep has achieved significant scale and continues to invest in the development of its technology for the growing mid-market segment.   

LawMaster’s customer base of nearly 4,000 daily subscribers is made up of many prestigious Australian firms in the upper mid-market. LawMaster’s primary product is a feature-rich, highly configurable legal practice management solution. Prior to the deal, LawMaster has been investing in cloud technologies and successfully launched Mattero, a strong cloud-based practice management system for smaller practices.  

The combination of LawMaster and Actionstep means the new business services over 11,000 subscribers in Australia alone.  

The two companies will continue to operate as separate businesses with David Toohey, the founder and CEO of LawMaster continuing to lead LawMaster.  David has spent over 40 years developing market leading, functionally rich technology for law firms.  This transaction gives LawMaster customers and team members an opportunity to be part of a global business and an exciting future technology investment plan.  

The new business will work closely with all LawMaster customers to ensure the continuation of Blue Ribbon quality service and understand their current and future technology requirements.  

David Hepburn, Global President of Actionstep commented, “We are excited to join forces with LawMaster, this brings together two amazing companies in the legal tech space, positions us for further growth and will fuel major technology investment to benefit the legal industry. Our priority as a business is to ensure our combined customers enjoy using our software – both day to day and in support of their future business plans.”  

David Toohey, CEO, Lawmaster commented, “Today begins an exciting new chapter and we are thrilled to be joining the Actionstep team.  As ever, we will remain focused on our customers’ needs and building market leading and innovative technology. Under one company with one set of values and a shared roadmap, the unified team can focus on propelling our customers businesses to new heights.” 

D-Link has launched its EAGLE PRO AI M32 range, the company’s newest and fastest Wi-Fi 6 AI Mesh Systems with the option of a 2-pack (M32-2PK) or 3-pack (M32-3PK) system. Featuring the latest Wi-Fi 6 technology, the D-Link M32 EAGLE PRO AI M32 solution provides the next generation of network speeds and capacity that are essential for modern day applications such as high-quality multi-player gaming, Virtual Reality and 4K Ultra High-definition video streaming.

Users of the new D-Link M32 Mesh Systems can experience dual-band AX3200 802.11AX combined wireless speeds of up to 3.2Gbps, while 1024-QAM boosts throughput to devices by up to 25% and 160MHz contiguous channel width gives even more bandwidth to individual devices. In addition to better coverage, higher performance, and more concurrent clients supported, the D-Link EAGLE PRO AI M32 also supports D-Link’s advanced parental controls and provides unprecedented visibility and control over your home network via the EAGLE PRO AI app.

With the M32 Mesh System, users can experience faster Wi-Fi 6 speeds and a Personal AI Assistant that sends you reports, continuously monitors traffic, and provides suggestions to keep your network working at optimal conditions. Combined with an AI Mesh Optimiser, the unique AI Beamforming technology ensures stronger, more reliable Mesh Wi-Fi throughout your home.

It’s also easy to add more coverage. From single-level apartments to multi-storey houses and extending to backyard pools and garden decks – additional EAGLE PRO AI M32 nodes provide more Mesh network coverage, giving you seamless high-speed Internet coverage that will eliminate Wi-Fi dead zones in those hard-to-reach areas throughout properties of any size.

The M32 Series features AI Parental Controls which provides a safer Internet experience for your family with options for website blocking and setting schedules. Thus, you can easily create a family-friendly Internet experience by taking control of your network and setting clear online boundaries. Voice control support via Amazon Alexa and the Google Assistant also means you can find out which devices are connected, which schedules have been created, check login credentials and reboot the system, all hands-free. Over and above this, you can also easily enable Internet access for your guests when friends drop over by using the Wi-Fi Guest Zone, as well as visually blocking any devices you don’t know.

D-Link has always taken security seriously, and the M32 Mesh Series sports the very latest advanced WPA3 Wi-Fi security standard, which encrypts your traffic and protects your wireless network from outside threats. WPA3 includes new protocols and algorithms to verify and secure your devices’ connections and your home network from external attacks.

With two built-in Gigabit LAN ports per node, you can also use Ethernet cables to directly connect to your M32 Mesh System for instant, reliable wired connections at Gigabit speeds for Smart TV’s and Consoles that tend to be in a fixed location.

Finally, the M32 utilises green technology that saves your devices’ battery life and helps with your overall energy consumption. Target Wake Time (TWT) automatically helps reduce battery consumption for all your connected devices by analysing when and how often transfers are required. TWT then automatically conserves energy and helps save battery life across your devices.

And in terms of setup, the M32 is easy to install and configure by utilising D-Link’s free EAGLE PRO AI app. The app also gives you full control over your Wi-Fi network with a personal AI Assistant to further help you manage your Wi-Fi by identifying your Wi-Fi needs and proactively fixing any Wi-Fi issues, as well as continuously optimising your home network.

EAGLE PRO AI D-Link M32 AX3200 Mesh System key features:

M32-2PK (2-pack), M32-3PK (3-pack)

            • Next Generation dual-band 802.11AX with combined wireless speeds of up to 3.2Gbps

            • Seamless Whole-Home Mesh Wi-Fi 6 coverage

            • 2-pack / 3-pack for up to 510sqm / 740sqm Wi-Fi coverage

            • AI Assistant sends regular recommendations and reports

            • AI-based Mesh, Wi-Fi, and Traffic Optimisers

            • MU-MIMO & OFDMA efficiency

            • Latest WPA3 Wireless security

            • Voice Control with Google/Alexa

            • Easy Setup & Management

The EAGLE PRO AI AX3200 Mesh System M32-2PK (2-pack) and M32-3PK (3-pack) are available now from www.dlink.com.au (RRP AUD$449.95 and AUD$599.95), and from all authorised D-Link Partners and Retailers.

The pandemic has forever changed the nature of retail, seeing consumers shift rapidly to online channels and this trend is set to continue well into the recovery and beyond. As consumers become increasingly savvy online, the demand for seamless eCommerce solution has never been stronger.

Now is the time for businesses to amplify their offering and fine tune their services to meet ever-more challenging consumer demand and expectations.

While all businesses love a boost to their online visitor numbers, brands that are unprepared for increased traffic risk their websites crashing or lagging. Simple but often overlooked issues like out of date plug-ins, code errors, and inadequate bandwidth can interrupt the customer journey, driving both customers and revenue to competitors. Without the right processes and partners your brilliant brand could fall short in this highly competitive space.

So how do businesses get ahead online?

Speed up your eCommerce solution

Over the last couple of years, the pace of digital transformation has reset customer expectations. From accessing information about restrictions to purchasing a new pair of shoes, websites need to provide quick results and an easy navigation experience for large groups of users.

The importance of a fast-loading website cannot be overstated. A recent survey found that over half of users (52 per cent) would leave a website if it doesn’t load within six seconds. A further 45 per cent of customers stated that businesses with slow-loading pages left a negative impression.

The reality is that every website is different. Businesses have different goals, products, themes, infrastructure, plugins, and buyers. It’s important to get expert advice from an agency or host on how best to maximise your performance.

Increasing website efficiency often comes down to simply managing unused themes or plugins and culling any software that is clogging up the back end. While this process can be time consuming, web hosting platforms such as WP Engine can easily take on the load. In fact, WP Engine manages the highest percentage of top WordPress hosts’ sites that load under 200 milliseconds.

Enhance the customer experience

Convenience has become the driver of many decisions online and the easier you make the customer journey, the more likely you are to have a positive outcome.

Younger generations have become a guiding force for the adoption of new technologies, and their expectations for digital experiences are constantly moving the needle of ‘what’s next’ in the way we interact online. WP Engine’s 2021 Generational Resilience Report revealed that Gen Z has high expectations for an increasingly more ‘human’ web, with 56 per cent believing that websites will begin exhibiting human emotions in the next five years.

One way to create this experience for your users is to invest in chat bots that can provide up-to-date information or direct access to customer support. You can explore personalised recommendations and add a ‘wish list’ to make saving options easy. Try connecting email marketing to your webpage to check in with the consumer if/when they abandon their cart.

WP Engine recently worked with its agency partner, G Squared, to improve the user experience for market-leading bedding manufacture, Sealy of Australia. Replacing outdated technology and design with a modern user experience, WP Engine made it easier for users to navigate the catalogue of mattresses and use a new Mattress Selector tool to find recommendations tailor-made to their sleeping habits. This created a seamless experience for these users resulting in a massive 85 per cent completion rate from customers using the tool.

Share the eCommerce solution load

Your website needs to be a top priority for your business but there are many spinning plates you need to balance. Whether you are a small business or a huge enterprise, a web hosting platform like WP Engine allows you to pass these plates into trusted hands.

The web hosting platform will be consistently monitoring for glitches, bugs and plug-ins that are impacting your website’s performance and provide solutions to rectify issues. Better yet, they will act as a security blanket, alerting you to any vulnerabilities that would put your users or your website at risk. With 80 per cent of Australian organisations surveyed by Sophos being hit with ransomware in 2021 (up from 45 per cent in 2020), it is a very real issue that businesses need to be prepared for. A safe website not only attracts more users, but also allows them to feel comfortable with sharing their personal data.

A strong, safe and speedy website is the key to succeeding online. Be sure to make your website (and its upkeep) a priority to avoid falling behind competitors. With the right support around you, you can not only keep your customers happy but drive growth and be fully prepared for increased traffic in the months and years ahead.

Written by Mark Randall, WP Engine’s Country Manager, ANZ

As the sky high prices for vegetables in Australia tumble by 60, 70 % or even up to 90%, Harris Farm Markets Co-CEO Tristan Harris predicts further savings over Spring due to the company’s commitment to Best in Region by Best in Season. Strawberry prices are the latest to slide – 3 months ago strawberries were $10/250g punnet and today at Harris Farm Markets they have 3 punnets for $4.50 – so $1.50/punnet.

The vast majority of strawberry farms were massively hit by La Nina over the last year; but over the last month weather has been great and so the farmers are recovering and the stock is flush. So Harris Farm put the prices down.

“This is where seizing what’s in season, and local, shows up in real savings at the cash register,” said Tristan Harris.

“Lettuce for example, has gone from $10 to $3, representing a 70% decease; Silverbeet has gone from $8 to $3 meaning it is over 60% lower; beans from $40 to $3, over 90% lower; corn has dropped from $4 to $1.50, a saving of over 60% and Broccoli has gone from $12 to $3, representing a 75% saving. This is all a result of Harris Farm championing what’s in season, and it’s the best way to do business,” he said.

“There is also value in mushrooms, herbs, strawberries & sweet delight tomatoes amongst others, with flood impacted areas such as the Sydney basin now flush with great quality crops. It’s time to support these growers who have had a really tough time.”

“We anticipate even more price relief over coming weeks.”

“Our guiding principle is that when nature gives us more, our customers will pay less; when it’s in season, we seize it; we give a fair go to those who grow, and for that wonderful range of bumpy veg (imperfect picks), we bump down the price. This has always been our commitment, it’s not new, but it is important we educate people, because the providence of produce matters.”

He said transparency in 2022 was important.

“In an increasingly hyper-sensitive price-driven economy, we want to show the ‘how’ and ‘why’ behind our products and their pricing, and to encourage customers to embrace value, with values.

“There’s a difference between buying an avocado from Harris Farm Markets and buying one anywhere else. It’s the same difference in buying eggs… The difference is that Harris Farm Markets maintains a very real commitment to the farmers and producers behind our shelves of fruit and veg, and a promise that low costs aren’t provided at all cost, because ultimately that cost will be to the farmer.” 

He continued: “Why are sweet delight tomatoes great value this month? Because there’s a bumper crop. Why are these carrot cheaper than usual? Because there’s loads with delicious bumpy bits but they are just as perfect on the inside. Why is our fresh guacamole affordable and delicious? Because we bumped out the middleman and make it ourselves with a tonne of love and the best avos in the country (from Toowoomba BTW),” he said.

“Treating farmers fairly is a no-brainer for us. Our suppliers aren’t strangers – they’re our partners. We expect a lot from them, so a fair go is the least we owe.”

“We know what it takes to grow a great crop, raise a happy herd or develop a new product that reduces waste. It’s these relationships that make it possible for us bring you the best that nature has to offer at a price that’s fair for all. That’s value with values.”

“For example, to the farmers whose crops we buy in full, we are unique in that we offer a ‘total crop solution’. Rather than buying just the largest or prettiest produce, we buy the lot – every piece of fruit off the tree, or veg in the ground as we do with avocados from Toowoomba Balmoral Orchards,

“This way our farmers don’t get stuck with half a harvest that they can’t sell. Yes, it makes it harder for us to manage but it’s the right thing to do, by farmers and by the environment.”

He said their focus on animal welfare and ethical farming practices had not waned, in fact was increasing.

“Harris Farm Markets has not sold a cage chicken egg in the last five years – something we are very proud of and happy to celebrate – and we love working with farms like the family-run Pirovic Farm on the NSW Central Coast, our supplier since 1982!!

Harris Farm Markets continues to shine the light on Imperfect Picks.

“Imperfect Picks is Harris Farm Markets’ seasonal range of fruit and vegetables that might not look perfect from the outside but are as full of flavour as ever on the inside,” said Harris. “Our Imperfect Picks program helps reduce the astonishing statistics that *25 per cent of Australian crops currently never leave the farm gate because they are a bit, well, unattractive, and do not meet the visual specifications of some supermarkets and consumers.”

“It means that every time you buy an Imperfect Pick, you are helping us take more from our farmers, you are helping reduce food wastage, and importantly, you are saving up to 50 per cent!”

“In the past six years we have saved more than 28 million kilograms of fruit and vegetables from going to landfill as a result of our Imperfect Picks range. This equates to approximately 100,000kg of perfectly good fruit and vegies per week. At each store and at our online shop, we have doubled the Imperfect Picks range which gives Aussie shoppers a wider variety of products to select from and makes a huge impact in preventing food waste.”

He said he was immensely proud of the community work done, especially over the past few months.

It’s been a tough time; the pandemic was devastating and then floods wiped out whole areas our customers and farmers call home.

“Because we can, we did. During the pandemic we were giving away 1,000 boxes of fruit & veg a day to vulnerable people who couldn’t’ come to our shops. This year’s inflationary pressures has seen us continue to donate pallets of fresh vegies every week to Ignite store in western Sydney, and pallets of vegies to Ukrainian refugees.”

“During the floods in the Northern Rivers we donated truck loads of vegies to the people of Mullumbimby and Lismore and delivered fresh fruit to Brisbane’s flood army. Being a business doesn’t stop us being human. This is what Value with Values is all about.”

WHAT’S IN SEASON THIS WEEK: 

• Berries are in-season! Blueberry and strawberry crops from northern NSW and Queensland are increasing and prices are starting to ease.
• Queensland strawberries are fully flavoured and the weather remains.
• All citrus is well supplied, as are apples and pears.
• Navels are now at their best and keeping well.
• There is an excellent line of Kanzis Applies in store this week.
• Vegies are the real winner as earlier flood impacted crops are now starting to flush, especially in the Sydney Basin. Tomatoes, lettuce, zucchini, imperfect eggplant, midi cos lettuce and broccoli are all stand outs.

As we near the end of another year filled with ups and downs, Aussies are gearing up to spread a little joy by splurging on loved ones during the holidays, and they’re choosing the most eco-friendly options available. With the growing awareness around the environmental impact of silly season waste, many are thinking of new ways to minimise their footprint and still enjoy the holidays without compromising all the trimmings.

Dubbed “The Most Wasteful Time of Year”, we collectively produce 30% more waste at Christmas time than any other time of year, with nearly 5 million tonnes of food sent to landfill. We use in excess of 150,000km of wrapping paper alone, enough to go around the earth nearly four times. The main offenders at Christmas are packaging, presents and food waste, with single-use plastics taking the crown for having one of the most significant impacts on land and water pollution. 

Australia’s culture of excess during Christmas has a well-documented effect on the environment; as waste materials left over from the holiday season breaks down in landfill, methane is released into the atmosphere, which contributes to global warming. 

Last year Australians spent a staggering $574 million on 18.7 million unwanted gifts, sending an avalanche of plastic packaging and rejected items straight to landfill. Despite the dampening effects of inflation and cost of living concerns, the ecommerce boom shows no sign of slowing down in the lead up to the silly season. As Christmas 2022 approaches, consumers are still keen to shop online, but are more wary of the effect their consumption has on the environment. 

I’m horrified by the excess plastic packaging generated by online shopping, especially around the holiday season. Confronted by the vast amount of plastic during this time, I encourage retailers to make the simple swap to packaging materials that are designed to decompose completely, to dramatically reduce the amount of plastic going into landfill.

Consumers are likewise calling on businesses to take action, with research from Deloitte showing that they expect companies to show leadership on the issues of climate change and environment. In terms of voting with their dollar 90% of Aussie consumers show a marked preference for ethical and sustainable products over their conventional counterparts. And for Christmas a quarter of respondents surveyed by ING said they would like to receive “socially conscious or eco-friendly” Christmas presents this year, with the eco-conscious preference extending to packaging too.

More and more customers are demonstrating their commitment to the plastic-free movement by purchasing from retailers that opt for zero-waste packaging, like fashion label Cue, online retailer Beginning Boutique and cosmetics company Lush, to name a few. Meanwhile retailers that aren’t environmentally friendly are being dumped by consumers in droves. Don’t let packaging be an afterthought this year.

Grant Thornton has released its 2022 Manufacturing Benchmarking Report providing a unique view of the Australian manufacturing industry. Now in its seventh year, the Manufacturing Benchmarking Report helps mid-sized manufacturers track their performance against industry benchmarks across a number of data points – including sales trends, gross margins, workforce costs, inventory lockup, and capex – and highlights potential avenues for improvement.

The Manufacturing sector has been critical to national resilience throughout the COVID-19 pandemic and recovery. Manufacturing makes many contributions to everyday life and Australia’s economy by encouraging commercialisation and R&D, creating efficiencies, generating export activity, and drove the production of crucial personal protective equipment and medical equipment throughout the pandemic.

The impact of the initial COVID-19 outbreak is clearly revealed in the 2022 Manufacturing Benchmarking Report’s sales numbers with a sharp decline in sales growth from 7.6 per cent in 2019 to just 1.79 per cent in 2020. In 2022, the manufacturing industry experienced overall sales growth of 4.6 per cent demonstrating that while the growth rate is trending upward, it continues to be impacted by global supply chain challenges. In another good outcome for the manufacturing the industry in 2022 average debtor days were at 47, significantly below their pre-COVID levels where the industry average in 2019 was 62 days.

As the current economy is experiencing high inflation, sales growth for 2022/2023 will likely increase significantly. However, the high inflationary environment will pose many challenges for the year ahead for all businesses, including the manufacturing sector. The headline anticipated inflation number for the December 2022 quarter is 7 per cent, but there are many actual cost increases businesses are also facing now that far exceed the cost of inflation. Supply chain issues have seen the cost of raw materials increase significantly, and both freight and energy costs have doubled or more for mid-size manufacturers over the last year.

“While the manufacturing sector has shown strength, it is not immune to major challenges – including skill and labour shortages, supply chain gaps and finding its place in a highly competitive global marketplace. But there’s light at the end of the tunnel with major investment into the sector as a result of a strong push by Government for manufacturers to scale up, establish Australia as a manufacturing nation, and position itself as a strategic partner in global supply chains. This includes the Modern Manufacturing Initiative, Patent Box, the R&D Tax incentive, multiple state-run initiatives, enterprises to modernise and improve Australia’s trade system and support Australian exporters. Many of these initiatives are specifically targeted at mid-sized manufacturers and play a key role in bringing these ambitions to scale up domestic capabilities to life,” said Michael Climpson Partner & National Head of Manufacturing at Grant Thornton.

The 2022 Manufacturing Benchmarking Report also recorded staff costs as a percentage of sales, which are between 1 and 1.7 percentage powers lower in 2022 compared to the previous year across all market segments. A shortage of workers and unavailability due to illness has meant that businesses have not been able to grow their workforce at the same rate as revenues. In addition, many manufacturers have been hesitant to add to the cost base of their business due to prevailing uncertainty in the market. Wage increases as a result of rising inflation, coupled with returning workforce capacity mean that manufacturing businesses will need to closely monitor workforce efficiency to manage staff costs.

Business travel’s premier event of the year will make a triumphant in-person return as Flight Centre Corporate opens registrations for Illuminate 2022, staged at Alexandria’s The Venue in Sydney on Thursday 20 October, with a ‘Focus Forward – Bigger, Better, Stronger’ theme.

Hosted as a hybrid event by corporate brands FCM, Corporate Traveller, Flight Centre Business Travel, Stage and Screen, and FCM Meetings and Events, Illuminate 2022 will feature relevant commentary and data from an amazing line-up of thought leaders and will provide critical insights to support business plans for future growth, success, and strategic travel management.

Gracing the stage will be the likes of HSBC Chief Economist – Australia, New Zealand, and Global Commodities Paul Bloxham, Virgin Australia CEO and Managing Director Jayne Hrdlicka, REX Airlines Deputy Chairman John Sharp, Ernst & Young – EY Partner, Climate Change and Sustainability Services Adam Carrel, and Sir David Attenborough’s right-hand-man Dr Chadden Hunter, to name a few.

They will be joined by Flight Centre Travel Group (FCTG) CEO and Managing Director Graham ‘Skroo’ Turner, Flight Centre Corporate Managing Director ANZ Melissa Elf, Corporate Traveller Global Managing Director Tom Walley, and FCTG’s Global Sustainability Officer Michelle Degenhardt.

“We are delighted to bring Illuminate back in an in-person environment – it continues to be a truly stand-out event for the corporate travel industry across the country,” Ms Elf said.

“Last year’s event was such an incredible success virtually that we wanted to retain that aspect of it, but we also want to practice what we preach by showcasing the importance of meetings and events in the business world

“The corporate travel industry is back in business. It is speeding ahead with every intention of helping companies of all sizes, across all sectors travel more safely, sustainably, and efficiently.

“Our sterling line-up of top industry leaders and inspiring speakers will focus forward on how we can return bigger, better, and stronger, including exploring the path forward for businesses, the industry post-pandemic, and how we can do this together sustainably.

“I encourage all businesses that travel to attend the event to equip themselves with the knowledge and tools needed to help them in the next post-pandemic phase. Innovation is at the very heart of what we provide for clients and customers and the hybrid event will also showcase that.”

Illuminate 2022 is a hybrid event. Guests are invited to register to attend the in-person event on Thursday 20 October, at The Venue, Alexandria, or register for the virtual experience.

New product features help small businesses and advisors predict future payments and spend less time in the back office

Xero, the global small business platform, today announced at Xerocon Sydney — its feature event for cloud accounting leaders from across the Asia Pacific — a suite of new features designed to help small businesses, accountants and bookkeepers plan for the future and manage compliance.

The features unveiled include some of Xero’s most innovative technology, including expanded artificial intelligence (AI) capabilities to help customers avoid a cash flow crunch, and insightful tools in Xero payroll to help simplify compliance.

Predict future payments with Analytics Plus

Xero has recently updated its cash flow forecasting tool to provide bulk management of planned and expected payment dates for overdue invoices and bills, further simplifying the process of forecasting cash flow.

Following this, a pilot for powerful new features in Analytics Plus, its popular suite of planning and forecasting tools, will help small businesses and advisors understand their business’ health and plan for the future with confidence.

“Every small business owner would love a crystal ball to predict the future. By leveraging AI, we’re able to provide small businesses deeper insights with a 90 day window into the future that is unique to them,” said Anna Curzon, Chief Product Officer at Xero. “These exciting changes will help small business owners and their advisors understand their future obligations, without having to do the manual lifting.”

For Australian small businesses, Analytics Plus will include upcoming BAS or PAYG payments so business owners aren’t caught out in their cash flow planning. Additionally, Analytics Plus will soon include the ability to predict likely upcoming payments for bills and invoices, such as payroll or partner bills, over the next 90 days, giving customers a holistic picture of their future cash flow. This will provide an opportunity to see the impact of changing regular habits or spending, and adjust accordingly to best benefit the business or practice.

The new features, which will roll out in early access to select Xero customers, will help to complete the cash flow picture for small businesses and their advisors.

Simplifying payroll compliance

Xero recently introduced a simpler way for employees to track their start, end, and unpaid break times in the Xero Me app, helping to support more accurate payroll data and record-keeping obligations. Xero Me is included with every Xero Payroll subscription and is designed to make managing people processes easier for small businesses, allowing employees to access payslips, submit and manage timesheets, leave requests and expense claims – all in one place. By reducing manual processes through self-service in the Xero Me app, payroll administrators can spend less time on manual processes and chasing employees for missing information.

Also showcased at Xerocon Sydney for Xero payroll customers in Australia was Payroll history – a comprehensive, accurate, and trustworthy audit trail of updates made to employee details. Allowing all payroll administrators the ability to identify, audit, and reconcile their payroll quickly and accurately.

“Navigating compliance in an evolving regulatory world can be difficult for small businesses, which is why we’re committed to providing tools that help simplify this critical aspect of managing a workforce. By offering simple tools that provide businesses with enhanced visibility and more accurate payroll data, advisors can spend less time chasing their clients to validate this, and more time on higher value work,” added Anna Curzon, Chief Product Officer at Xero.

Delegates from Australia, New Zealand, and Asia are gathered at Xerocon Sydney at the ICC from 7-8 September to hear the latest from industry leaders and gain expert insight into the newest Xero tools and features to help save time, grow their business and have a greater impact on their clients’ success.

Improved practice management tools

Xero has redesigned the Job Manager in Xero Practice Manager to help accountants and bookkeepers more easily see, find, and track client jobs, their status, and due date – all in one place. The new Job Manager will help advisors monitor progress, assign and prioritise client jobs, and see where budgets may be exceeded, enabling them to manage client jobs and workflow efficiently from end to end.

The redesigned Job Manager has already been released in early access to a small number of accounting and bookkeeping partners. It will be available to all Australian Xero partners later this year. Accountants and bookkeepers can sign up to Xero’s Insider’s Program to find out more and get early access.