Rises in energy costs a concern for 75 per cent of businesses
The Commonwealth Bank has released a new report which reveals the concern felt by many companies over the impact of rising electricity prices on their bottom line.
Manager sentiment in the Commonwealth Bank Future Business Index shows that over half of respondents believe they are not prepared for continued fluctuations in business conditions.
Confidence remains low, particularly where electricity bills are concerned.
According to the report: "Three-quarters of businesses believe that rising energy costs will impact them over the next six months."
39 per cent of large businesses have predicted profits to decrease in the coming quarters.
Increased wages and salary costs have led 54 per cent to claim revenue will also be impacted and many companies are still worried about other factors such as fuel expenses and the fluctuating Australian dollar.
The concerns of businesses are justified, particularly when it comes to the cost of powering an office, factory or retail store.
Rises in electricity prices hit companies hard, particularly when they have multiple sites, or their service is dependent on constant energy consumption.
Many businesses also need to keep servers and computer systems running around the clock, meaning that the added cost will inevitably hit their bottom line.
Posted by Charlie Moore