Manufacturing News

Cashflow priority to help manufacturers navigate 2023

RSM

RSM reflects on the year in manufacturing and maps out the opportunities for more growth in 2023.

Despite the economic turbulence there are opportunities to be seized in 2023 for the manufacturing sector, according to RSM Australia’s national leader manufacturing services Jessica Olivier.

Olivier said the timing is right for manufacturers to invest in R&D and claim the R&D benefits, to inject some much-needed cash into their systems.

Two of the biggest issues manufacturers had to deal with during Covid and throughout 2020 and 2021 were supply chain issues and the lack of available talent and resources.

Olivier added supply chain disruption and delays eased a little in 2022 but remain a lingering concern for many – some cars and other major purchases still have a two year wait list.

“For 2023, cashflow will be a key concern given the economic environment with inflation and higher interest rates in play,” she said.

‘’Already we are seeing our manufacturing clients interested in seeking more grants and overall we hear the manufacturing sector is paying more slowly.’’

Olivier is keen to see what grant initiatives the relatively new Labor government undertakes.

“MMI was discontinued in the recent Federal Budget. This initiative had been very popular, so many in the industry are keen to see how its replacement works in practice,” she said.

“Labor will redirect these funds but it is wait and see as to how effective this will be.”

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