Business productivity is cause for concern
Demand for productivity solutions could be even greater than ever for Australian businesses, as one group believes output has taken a hit throughout most of 2014.
Responding to the latest GDP figures, the Australian Industry Group (Ai Group) highlighted a number of areas of concern in the business landscape – and productivity is one of them.
"In the third quarter, gross value added per hour worked in the market sector fell by 0.2 per cent q/q, while real unit labour costs in the non-farm economy increased by 0.8 per cent q/q," said Head of the Ai Group Innes Willox.
Some improvements in productivity were seen last year, but there is now widespread concern that these latest results may point to a reversal in some of the good work that's been achieved.
Mr Willox stressed that productivity and business competitiveness are closely linked, which is why it is so important for companies to increase their output as much as possible.
Data from the Australian Bureau of Statistics (ABS) shows GDP increased 0.3 per cent during the three months to September, with one of the main drivers being growth in net exports.
However, there was a fall in total gross fixed capital formation and changes in inventories, both of which helped to offset some of these gains.
The Ai Group said GDP is now tracking significantly below trend, which could cause problems for business confidence moving into 2015.
A decline in the Australian dollar has offered businesses some support, but this will need to become a long-term trend if real benefits are going to be seen.
No matter how well the wider economy is performing, firms need to take whatever steps possible to ensure they are as productive as possible and combating the difficulties they face.
Productivity software is just one product that can help companies across a range of industries meet their goals.