australian mid-market report 2014

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Imagination at work. Aaron Baxter, Managing Director - Commercial GE Capital Australia & New Zealand Mid-Market at the forefront “Changing Landscape”

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Read the full report to see how the year’s events have impacted the Australian Mid-Market, and what this means for your business over the coming period:

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Page 1: Australian Mid-Market Report 2014

Imagination at work.

Aaron Baxter, Managing Director - CommercialGE Capital Australia & New Zealand

Mid-Market at the forefront “Changing Landscape”

Page 2: Australian Mid-Market Report 2014

Economic Backdrop in which we operate today

Taking a closer look at major events in 2013 shaping the Australian Business landscape “MALAYSIA-AUSTRALIA FTA (MAFTA) - The most recent Australia FTA to come into effect. Trade with Australia: AU$17.2 billion ” January 2013

“Rio Tinto CEO Tom Albanese ousted after the miner announces botched Mozambique mine investment worth $14 billion”January 2013

“S & P/ASX200 index passes the 5000-point February 2013

2013 - a year of volatility and some stability“The Australian economy is going through significant change,

with multiple, long-term forces restructuring our economy”

“The official interest rates drop to the lowest in Australian history at 2.5 per cent.August 2013

“Qantas' heavy maintenance base at Avalon closes with the loss of 300 jobs.November 2013“Qantas announces at least 1000 job cuts after forecasting a $300 million half-yearly loss. December 2013

“Holden announces it will stop manufacturing in Australia in 2017. December 2013

September 2013

Page 3: Australian Mid-Market Report 2014

Mid-Market businesses stay confident and committed to the Australian economy

Contributes one third of Australian business revenues

27,500 Mid-Market businesses in the Australian economy

Contr

ibute

s one f

ourt

h of

Aust

ralia

n f

ull

tim

e jobs

Contr

ibute

s $

42

5bn t

o t

he

Aust

ralia

n G

DP

In 2013 the sector has bounced back with positive sentiment

Fact sheet

Page 4: Australian Mid-Market Report 2014

Mid-Market Growth Outlook disparate: Changing economic geography

Mid-Market Manufacturing Construction Transport & Storage

Wholesale trade Business & Property

Mining and Others

Retail trade

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.11

0.00

0.070.08

0.100.12

0.13

0.18

Jan to Jun-12 Jul to Dec-12 Jan to Jun-13 Jul to Dec-13

Busi

ness

Gro

wth

Out

look

Inde

x

Note: All data based on a 6-month rolled measures. Average sample sizes: n-1,550;

‘Two Speed’ economy distinction rapidly blurs as industry reshuffles

Page 5: Australian Mid-Market Report 2014

Mid-Market businesses strive to strike a balance given the current economic environment

COST GROWTH

They continue to strike a balance between managing cost and increasing revenue

1. Slow demand across the economy2. High value of the Australian dollar & the challenge of global

competition; and,3. Rising cost of doing business.

Page 6: Australian Mid-Market Report 2014

Productivity - the key to Mid-Market's growth

An emerging trend “Jobless growth” driven by

1. Efficient utilization of a mix of technological developments,

2. Advanced manufacturing initiatives 3. Developing online or cloud-based markets and 4. Increased focus to improve profitability despite cost

pressuresChanging nature of workforce

Page 7: Australian Mid-Market Report 2014

Our focus this year : Three key Industries

GE Capital supports Mid-Market businesses

Page 8: Australian Mid-Market Report 2014

Title or Job Number | XX Month 201X See tutorial regarding confidentiality disclosures.

8

 Read the full report to see how the year’s events have impacted the Australian Mid-Market, and what this means for your business over the coming period:

2014 Australian Mid-Market Report

2014 Mid-Market Report is available now!

Page 9: Australian Mid-Market Report 2014