What lies ahead for businesses in 2022?
Welcome to the 2022 McGrathNicol Forecast. Although there is renewed optimism for businesses off the back of strong post-COVID growth, targeted government support and the reopening of Australia’s borders, businesses now face a range of challenges including difficult supply chains, increasing rates of cyber attack and geopolitical uncertainty. Complacency will be dangerous – legally, commercially and reputationally.
Supply chain disruptions and persistent labour shortages are expected to continue. Cyber risks and changes to critical infrastructure legislation will be a top priority for boards. Tighter working capital management will be critical for industries like construction and retail in the face of supply pressures and a return to pre-pandemic habits.
The widely predicted “tsunami” of insolvencies has not eventuated, with insolvency numbers declining in 2021 to a historical 20-year low. Whilst we predict a continued subdued level of insolvencies, with all of the stimulus levers now pulled to their full extent, any downside shock to the economy risks significant ripple effects.
Our forecast outlines the key challenges and opportunities facing organisations. We hope you find the insights informative and we look forward to working with you in the year ahead.
Jason Preston, Chairman