The Real Media Collective has released a snapshot of its COVID-19 business survey findings and has used the information to call on the federal government to extend the JobKeeper scheme for the print and manufacturing sector beyond its current September 30 cut-off.
The survey has found on average businesses operating in the print, paper, mail and publishing sectors experienced a 55 per cent drop in business with some reporting revenue reductions as high as 80 per cent.
The figures also reveal that 85 per cent of businesses in these sectors believe financial assistance for wage support will need to be extended if these operations are to continue.
TRMC chief executive officer Kellie Northwood said the information gathered by the survey points to potential job losses across the sector should the JobKeeper scheme not be extended for those that need it.
The survey results have been forwarded to Prime Minister Scott Morrison and Treasurer Josh Frydenberg along with a call for an extension of JobKeeper.
“The economic effects of COVID-19 on the retail, hospitality, sporting, tourism and other sectors have been significant and largely reported. This has had a flow on effect to other industries – and specifically the marketing and advertising sectors,” Northwood said.
“Our industry is reliant upon a client base made up largely from those sectors most impacted, and as a result our industry has been negatively affected and hit quickly.
“Given our industry’s low margin to output ratio, it will take longer to recover than other industries – manufacturing in Australia is important to the ongoing success of our economy, however this sector requires specific attention to meet its needs.
Northwood said not all industries are the same and that the printing sector requires a recovery for its customers before it can itself turn a corner.
“The latest data reports 90.5 per cent of businesses in our sector have been considerably impacted by COVID-19, with the average downturn reported as 53 per cent, many businesses servicing hospitality, tourism and retail sectors realising over 80 per cent downturn,” Northwood said.
“We have submitted the report findings to the Prime Minister, the Treasurer, and other relevant Ministers to strongly consider extending the JobKeeper scheme for our industry and local manufacturing that await the momentum from clients.
“We have asked government to consider this, as it reviews the effect of the JobKeeper scheme for the print, publishing and mail sectors.
“TRMC has welcomed the JobKeeper scheme for its purpose, effect, and the speed at which government implemented this and other components of the economic stimulus package to overcome the effects caused by the COVID-19 pandemic, however we still need ongoing support.”
TRMC Industry Insights COVID-19 report findings:
The June 2020 Industry Insights survey – paper, print, mail and publishing reports:
- 90.48% of businesses have experienced considerably negative effects as a result of COVID-19.
- Survey respondents have experienced between a 20 – 90% downturn in work, with an average downturn of 55.28%.
- 71.66% have already had exposure to debtor related issues.
- 87.72% have sought and are receiving assistance under the JobKeeper scheme.
- 78.43% of those businesses having 100% of their employees covered under the JobKeeper scheme.
- 76.78% believe the JobKeeper scheme will assist in keeping workers in employment for the longer term.
- 85.01% believe there is a need for ongoing business assistance to ensure future viability.
- The industry’s turnaround is reliant upon the turnaround of other significantly impacted sectors, this will also contribute to a longer recovery time than will be experienced by other industries.
In other news, the next industry Rebuild Together series scheduled for June 24 is not be missed. It features some of the industry’s most influential leaders including: Rodney Frost, Group CEO of the Lamson Group; Aaron Lusch, general manager, Platypus Print Packaging; Tim Michaelides, managing director, Complete Colour and Ian Smith, managing director of Advance Press with Northwood hosting.
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