Australia: A two-speed economy. Soon to be four speeds – fast, slow, stop and reverse. Possibly multi-speed. The government holds the purse strings. The current key performance determinants are government subsidies, incentives, rebates, tax relief, and even “commercial-in-confidence” contracts.
Buoyant demand, revenues, and cash flows are evident in the healthcare, medical, schooling, childcare, disability support, infrastructure, and housing sectors. Elite sports, entertainment and social events can be added to the list. Some consumers, taxpayers and recipients benefit from free access to such services, products, practices and applications.
Profit is another issue and is not guaranteed.
BLOW HARDS
Wind turbines, solar panels and transmission networks are dependent on Government funding, contributions and concessions. Notwithstanding such widespread stimulation and artificial financial justification, an increasing number of initial and previously enthusiastic participants are withdrawing their interest, intent, resources and finances from government-supported and promoted energy projects and initiatives.
Unbelievable? Where is the Minister for Climate Change and Energy, Chris Bowen, to financially justify, rationalise, and substantiate this seemingly conga line of pipe dreams? A concise, direct and unequivocal explanation with no “floating” time horizon will be appreciated and valued.
WHO PAYS THE PIPER?
A looming $1 trillion national debt sheds light on the funding source. Taxpayers. Feeding the insatiable appetite of the Cookie Monster expenditure regime is expensive and expansive.
RECONFIGURED ECONOMY
Look ahead. Withdrawal or reduction of government expenditures in the Federal sphere, in particular, will have immediate, widespread, potentially substantial and ongoing consequences.
Recipient sectors and entities to what is largely identified as government largesse will be impacted. Restructure and strategic and tactical planning reviews will be necessary.
Fixed costs will be a specific, relatively inflexible burden. Not-so-variable costs, which can be more readily modulated.
Business models, project viability assessments, capital adequacy and allocations, costings and pricing structures will require finessing.
The economic pain long endured by some sectors (retailing, hi-tech, and services) will be shared by both previously buoyant and recently buoyant hubs.
A slowdown will have implications for the inflation rate, overall momentum and productivity. Critical mass could rapidly devolve into a critical mess for some. Not despairing, but certainly concerning.
Pain will be extensive. Financial prudence and liquidity will be rewarded.
Subsidised demand will be tempered if not dissolved in key sectors of the economy and marketplace.
Now is the time to prepare, plan and exercise leadership.
Barry Urquhart
Business Strategist
Marketing Focus
M: 041 983 5555
E: [email protected]
W: www.marketingfocus.net.au
COMMENTARY: RUNNING ON LOW
When running on low economy. Don’t give up.
Low is not empty. Hope springs eternal.
EVALUATE.ECONOMISE. EXERT. EXTEND. ELEVATE. LIKE. SHARE.
by Barry Urquhart – (c) 2026.
Read Time: 3 minutes.
About the Author.
Barry Urquhart is a highly regarded market research and strategic planning consultant, recognised throughout Australasia for his insight, clarity, and thought leadership. A seasoned keynote speaker at premier conferences, Barry is also the acclaimed author of Serves You Right! And Service Please!, two of the region’s top-selling titles on customer service excellence.
Respected as a trusted voice in business strategy, Barry continues to lead influential workshops and development programs that help organisations drive sustainable growth, elevate service culture, and achieve competitive distinction.
For Media Enquiries or Speaking Engagements:
Email: [email protected]
Mobile: +61 041 983 5555
