A snap survey of WA businesses has exposed the impact of the fuel crisis on the WA economy.
CCIWA’s survey of more than 430 WA businesses across every sector in the past week has found 82% have experienced an increase in supplier costs because of the Gulf conflict.
Almost half (45%) said they had been directly impacted by fuel shortages.
Just under one in three (31%) described the impact of the conflict on their business as “significant” or “severe”, while only 7% said it had had “no impact” so far.
Just under three in five (56%) said they would be forced to absorb the extra costs, while two in five (44%) said they would have to pass costs on to consumers.
CCIWA’s Chief Executive, Will Golsby, said there were very few businesses in WA who have not been impacted by the fuel crisis.
“This reaches into virtually every business, whether it’s through fuel costs, supply challenges or the increased costs being passed on from suppliers,” he said.
“Our survey produced some very alarming results, with some businesses saying the current crisis could force them to close their doors.
“We’re obviously deeply concerned about what happens if this crisis continues. The longer this drags on, the worse it will be for WA businesses and the broader economy.”
The survey found businesses in the agriculture sector have been hardest hit, with 74% reporting a “severe” or “significant” impact from increased fuel, fertilizer, chemicals or freight costs.
Mr Golsby said there were significant concerns from the Health and Disability Care sector, with the cost of delivering home care services increasing significantly.
“This sector provides absolutely vital services in our community and many of the services cover large areas of our state that require staff to travel,” he said.
“The increase in fuel prices has delivered a blow to the sector, and supply is also a factor with 56% of businesses in Health Care and Social Assistance reporting they’ve been impacted by shortages.”
Mr Golsby said there were also significant concerns about the impact of fuel prices on consumer spending.
“The significant hit from fuel prices to household budgets will begin to flow through to consumer behaviour,” he said.
“Businesses in the hospitality, tourism and retail sectors are likely to be the first to see these impacts and we’ve heard from businesses in tourism that they are bracing to experience impacts over the Easter holidays.
“This will deliver another blow for regional communities in WA.”
Almost half of WA businesses (47%) said they would reduce non-essential spending.
One in four (25%) said they would review staffing and 11% said staff had requested extra Work from Home days.
Mr Golsby welcomed the State Government’s strong focus on coordinating fuel supply and distribution with industry and the Federal Government but said more will need to be done to ease the pressure on businesses and the community given costs are likely to stay high for some time.
“All levels of Government – Local, State and Federal – need to look at things like fees and charges over the medium term to ease some of the pressure on businesses to help them support the economy and stay afloat,” he said.
