Hills Business Performance Sentiment Index

Friday, April 28, 2017

On Friday in conjunction with The Hills Shire Council and the Sydney Hills Business Chamber, we released the Hills Business Performance Sentiment Index, which gives an ongoing measure of the local economic conditions and business confidence. This study, now in its third year is very important in an entrepreneurial hotspot like the Hills, which is home to more than 20,000 businesses and almost 100,000 employees. The area is also strong with start-ups, which are expanding the local economy. Every week in the Hills, 15 new businesses commence operations and with the new transport infrastructure, commercial constructions and emerging urban centres, the number of new business start-ups locally will likely accelerate.

This year’s results highlight the challenging conditions local businesses are currently experiencing. The overall rating this year is lower than last year although the forward forecast remains strong. The current economic conditions are subdued and business expenses are up, yet such is the way of Australian entrepreneurs, their sentiment and outlook is decidedly positive.

Of the 21 measures, the two that scored the lowest, highlighting the biggest challenges, were the increasing business costs and the local infrastructure challenges. The highest two scores indicated that revenue forecasts for the six months ahead will rise and that local businesses forecast they will take on more staff this year. Therefore, the flat domestic economy, issues from under-construction local infrastructure and higher costs to revenue metrics are all viewed as temporary, though challenging circumstances.

Our thanks go to The Hills Shire Council and the Sydney Hills Business Chamber who recognise the importance of this Business Performance Sentiment Index in a growing local economy, amidst volatile times and facing massive change. Their foresight to commission such a project, commitment to its ongoing deployment and generosity in making it freely available to the business community is to be heartily commended.

For the full report go to www.businesspsi.com.au



Click below to view the previous Hills PSI Reports

Sydney at 5 million and the growth of The Hills Shire

Monday, April 24, 2017

Sydney has now officially hit a new population milestone of 5 million, and almost half of the population (2.2 million) reside in the 14 local government areas that make up Western Sydney of which The Hills is one.

If Western Sydney was a city in its own right, it would be the 4th largest city in Australia after Melbourne, the rest of Sydney, and Brisbane. While Western Sydney is just slightly smaller than Brisbane’s population of 2.3 million, it is growing 30% faster than Brisbane.

The population of The Hills is greater than the population of Darwin, and the two local government areas of Blacktown and The Hills have a combined population almost the same size as the entire state of Tasmania. This growth is evident in the increasing development seen around the Hills. The increasing urbanisation has raised the density of The Hills to 4.15 people per hectare, above Hornsby Shire’s 3.69 and well above Hawkesbury’s 0.24.

What differs the hills to the rest of Sydney?

The Hills Shire is now almost 10% larger than that recorded in the 2011 Census. Not only is the Hills population growing faster than the national growth rate, but the average household is significantly larger than the Australian average (3.1 compared to 2.6 people per household) and the district is home to a higher proportion of students, university educated adults and full time workers than both the national and state averages. The region is more culturally diverse with 3 in 5 residents having at least one parent born overseas compared to less than half of Australians nationally. The proportion of school-age children locally is 20% higher than the Sydney average, and those in their 40’s, 50’s and 60’s are similarly well above the greater-Sydney average.

Age gap in the Hills Shire

There is a hole in the Hills’ demographic, a 15-year gap in the numbers of locals aged 23 to 38. This missing group, neatly lining up with Generation Y, is a staggering 20% smaller than is average across the rest of Sydney. In fact, while there has been an increase in numbers of almost every age group over the 5 years between the last two Census reports, for the mid 20’s to mid-30’s there has actually been a decrease in numbers.

Entrepreneurial hotspot

The Sydney Hills is also an entrepreneurial hotspot, with 32,191 actively trading local businesses. So while the local population represents less than 0.7% of Australia, the number of businesses is more than twice this share at 1.5% of all Australian businesses. And with the new transport infrastructure, commercial constructions and emerging urban centres, the number of new business start-ups in the Hills will only grow.

The future of the Hills Shire

The future for the Hills will include more pockets of urbanisation which will create options for those looking for apartment living, walkable communities and a café culture. However, the size and diversity of the area will mean that the suburban and semi-rural nature of other parts will remain and the overall density will never reach the highs of local government areas like Parramatta which currently has 27.48 people per hectare. Not too many parts of Australia offer high-density living options just 10 minutes’ drive from acreage. Little wonder The Hills is one of the fastest growing regions in NSW.


Mark McCrindle will present the results of the 2017 Hills Business PSI, the third year of this study this Friday at the Sydney Hills Chamber of Commerce Chairman’s Lunch at which the Premier will deliver the keynote address.

If you would like a copy of the full Hills PSI Report please let us know and we will make it available after Friday’s launch.

Census Update - In the media

Thursday, April 13, 2017

The Australian Census has been conducted every 5 years since 1911, and is the biggest democratic activity in Australia. While the election last year counted 14 million votes, the 2016 Census includes every household, age group, resident and visitor – all 24 million of us.

Here’s everything you need to know about the preliminary Census results, painting a picture of our changing nation.

WHO IS THE TYPICAL AUSSIE?

The typical Australian is a 38 year-old Gen X woman, born in 1979, who can expect to live past the age of 85. She is married with two children and lives in one of Australia’s capital city (like 3 in 5 Australians), which is worth $825,980 and which she owns with a mortgage. She has $427,847 equity in their home, which is the bulk of her wealth. She works full-time and gets to work by car, along with 69% of all commuters.

HOW IS AUSTRALIA CHANGING?

We are ageing

The median age of Australians has increased from 37 to 38 (from the 2011 to the 2016 Census). Queensland has shown a strong leap in ageing (from 36 to 38), as has the Northern Territory (from a median age of 31 in 2011 to 34 in 2016).

We are culturally diverse

Three states (NSW, VIC, and WA) now feature their ‘typical’ resident as a person who has at least one parent born overseas. In NSW, China is now the top country of birth for residents born overseas and in VIC the top country for residents born overseas is India.

Owning a home outright is not as common anymore

The typical person across all of the states and territories now no longer owns a home outright, but with a mortgage. Only NSW and TAS feature the typical person who owns a home outright, and in the NT, the typical person is renting their home.

McCrindle In the media

Mark McCrindle on The Daily Edition

Eliane Miles on SBS News

Mark McCrindle on Seven News

McCrindle In the media





Latest Census Results: The 'Typical Aussie'

Tuesday, April 11, 2017

As demographers and social researchers there are a few calendar events that cause for celebration. Among them include population milestones, special data set releases and, of course, the Census.

The preliminary results from the 2016 Census, released this morning, show a picture of a changing Australia. 

We now have a clearer picture of the ‘typical’ Australian

The typical Australian is a 38 year-old Gen X woman, born in 1979, who can expect to live past the age of 85. She is married with two children and lives in one of Australia’s capital city (like 3 in 5 Australians), which is worth $825,980 and which she owns with a mortgage. She has $427,847 equity in their home, which is the bulk of her wealth. She works full-time and gets to work by car, along with 69% of all commuters.

We also have a picture of a changing Australia

Evidence of an ageing Australia

The median age of Australians has increased from 37 to 38 (from the 2011 to the 2016 Census). Queensland has shown a strong leap in ageing (from 36 to 38), as has the Northern Territory (from a median age of 31 in 2011 to 34 in 2016). The median age is varied across Australia, with the youngest median age found in the NT (34) while the oldest median age is found in Tasmania (42).

Cultural Diversity – Growth in non-Anglo country of birth

  • Three states (NSW, VIC, and WA) now feature their ‘typical’ resident as a person who has at least one parent born overseas.
  • In NSW: China is now the top country of birth for residents born overseas, surpassing England since the 2011 Census.
  • In VIC: The top country for residents born overseas is India, which has surpassed England since the 2011 Census. A decade ago (2006) the top countries of birth for residents born overseas didn’t include India (They were England, Italy, New Zealand and Vietnam).

Housing affordability and home ownership

The typical person across all of the states and territories now no longer owns a home outright, but with a mortgage. Only NSW and TAS feature the typical person who owns a home outright, and in the NT, the typical person is renting their home.

Was #censusfail real?

No – despite some hiccups on 9 August 2016, the numbers show that the data is robust and up to the best-practice quality of previous census'.

  • 96% of Australians completed the Census (just slightly lower than in 2011, and higher than the required 93% for census quality data).
  • Just 11,000 refused to fill out the Census (lower than 13,000 who refused in 2011).
  • 58% completed the Census online (against an expected 65%) – yet this is twice the number from 2011

What's next?

Today's snapshot is just the start of the Census data release. On June 27, the official Census datasets will be released, with further data coming out in July, October and the final data to be released in early 2018.

The good news is that after discussions to relegate the Census to every ten years, the once-every-five-year Census is here to stay..
So it will all be on again on Tuesday 10 August 2021!


For any media enquiries please contact Kimberley Linco at kim@mccrindle.com.au, or call our offices on +61 2 8824 3422.



Contiki Youth Evolution research

Thursday, March 30, 2017

We were delighted to partner with Contiki to conduct new research into the aspirations, behaviours and fears of young Australians (18-36 years of age). The Contiki 2017 Youth Evolution Report explores some of the key trends influencing their attitude and lifestyle.

Feeling left behind

There is a strong sentiment among young people, specifically those aged 18-21, that they are being left behind economically. Especially in an era of flat wages growth and huge increases in home and living costs. Two decades ago, the average Sydney house price was around six times the average annual full time income. Today this has skyrocketed to 14 times the average annual full time income.

Ten years ago, over a third (34%) of 18-34 year olds indicated they were saving for a home, while this has dropped to below a quarter (24%) today. A significant two in five (40%) 18-21 year olds fear they will never be able to own a home. “We think of younger generations as having a youthful idealism and optimism, but this research shows young adults are not feeling as positive”, says Mark McCrindle.

Financial fears

Over half (51%) of 18-21 year olds fear not being able to live out their dreams due to financial and time constraints and 42% already regret not saving enough.

“The students of today are going to be the most formally educated generation to date; it is predicted that one in two will obtain a university degree. However, so too will they have higher amounts of debt when they enter the workforce; in fact, they might be the first generation since the Great Depression who will end up economically worse than their parents,”. - Mark McCrindle

Travel is a priority

Despite financial constraints and complexities regarding an independent lifestyle, 76% of 18-21 year olds want to travel more. 

Although more than two thirds (69%) of this age group has the desire for financial freedom, just beyond this is their desire to travel and see the world (64%). 

Around a third are also willing to go into debt for travel (36% of 18-21, and 39% of 22-36 year olds).

Delaying traditional life markers

With a focus on lifestyle rather than just wealth accrual, the emerging generations are spending more time living at home. They are also delaying traditional benchmarks of adulthood such as buying their first home, marrying, or starting a family.

A third of Australians (32%) aged between 18-36 years old continue to live in the parental home. This is a mix of both those who have never moved out as well as those who have moved back in with their parents. This is often due to high costs of living; labelling them as the “boomerang generation”.

Even though they are happy to live with mum and dad, this generation is very aspirational, with two in five 18-21 year olds (41%) stating they would not be happy if they ended up in a similar financial situation and lifestyle as their parents (cf. 33% of 22-36 y/o).

More socially aware

Despite their daily struggles, young Aussies care about the world they live in and are more socially aware than previous generations. The research found that climate change (18-21: 26%), gender equality (15%) and racism (12%) are issues that are high on young millennials’ agenda. The report also revealed that almost one in five (18%) 18-21 year olds already regret not making more of a difference in the world (cf. 22-36: 12%; 37+: 10%).

The Fading Australian Dream

Thursday, March 23, 2017

Housing affordability is currently a key issue of discussion in Australia and while there are a number of factors at play, the main price driver is that demand for houses is exceeding supply. Population growth, a trend to smaller households (and so more homes needed relative to the population), and demand for homes not only from first home buyers but also from downsizers, overseas buyers, local investors, and self-managed super funds and trusts are all fuelling price rises.

While Australia’s current annual population growth of 1.4% may seem modest, this adds almost 340,000 to our population each year- which is one new Darwin every 20 weeks or a new Tasmania every 18 months.

Where population growth is strongest, house price rises are the highest

Sydney is growing much faster than this having averaged 1.8% per annum for the last five years. It will add almost two million to its population by 2037 – which is the equivalent of adding a new Perth into Sydney. Melbourne is currently Australia’s fastest growing city and based on the current growth trends, it will overtake Sydney to become the nation’s largest city around the middle of this century. Unsurprisingly where population growth is strongest, house price rises are the highest.

Earnings growth has not kept up with house price growth

In just twenty years, the average Sydney house price has increased more than five-fold from $233,250 in 1997 to $1,190,390 today while in Melbourne prices over the same period have increased by more than six times from $142,000 to $943,100 today. While it is true that wages have increased over this time, earnings growth has not kept up with house price growth. In 20 years, average annual full-time earnings have not quite doubled from $42,010 in 1997 to $82,784 today.

The impact of growing demand on house prices is most evident when comparing prices to average earnings. Twenty years ago, the average Sydney house was 5.6 times average annual earnings while in Melbourne it was an affordable 3.4 times annual earnings. Today Sydney homes are more than 14 times average earnings, and in Melbourne more than 11 times annual earnings. While the maxim that house prices double every 10 years is not always the case and growth fluctuates, since 1997 Sydney prices have in effect doubled every 8 years while Melbourne has managed this every 6 years.

If the growth metrics over the last two decades play out over the next two, the average home in both Sydney and Melbourne in 2037 will exceed $6 million. Clearly, the Australian dream of home ownership for the next generation is fading. Young people today need almost three times the purchasing power that their parents needed to buy the average place, so even double incomes will not quite do it. Additionally, today’s new households are starting their earnings years later than their parents, having spent longer in tertiary studies, and they begin their economic life not with zero savings like their parents, but well into the negative- with interest accumulating study debts to pay off. Even if today’s emerging generations start saving harder and earlier and live with their parents longer, home ownership is still not a given.

Policy settings around migration and baby bonuses have grown the population and policies around property tax incentives, self-managed superannuation and investment provisions have fuelled property demand therefore policy support will be required to bring the great Australian dream a little bit closer to reality.

Sources: Population at 2017 (ABS). 1997 prices: Macquarie University (Abelson). 2017 house prices: Core Logic. Analysis: McCrindle

The Healthy Futures Report

Thursday, March 16, 2017

The Pharmacy Guild of Australia and Amneal Pharmaceuticals commissioned McCrindle to write up and design the Healthy Futures 2017 Report. 

This report reveals the insights into consumers understanding of pharmaceuticals and pharmacy health services.

The findings were gathered from a national survey of 1,001 Australians aged 18+ and the results were delivered at the annual 2017 APP conference by Mark McCrindle.

 

From developing the survey through to conducting the analysis and communicating the insights, this piece is a great example of a thought leadership report that delves into Australians attitudes and sentiments towards pharmaceutical services.

VIEW THE FULL REPORT HERE

VIEW THE FULL INFOGRAPHIC HERE 



GET IN TOUCH

If we can assist with any research, event speaking or infographic design please feel free to get in touch:

P: 02 8824 3422

e: info@mccrindle.com.au 

Understanding Generation Y Globally and Locally

Monday, February 20, 2017

Generation Pessimism

We think of the younger generations having youthful idealism and optimism yet the 2017 Global Millennial Study by Deloitte shows that the 20’s and early 30-somethings are not feeling optimistic. Just 1 in 4 believes the year ahead will see an improvement politically and again a minority- only 1 in 3 believe we will see an uptick economically.

Where’s our share?

While it is little surprise that their number one concern is terrorism/political tension (56% are concerned), the second biggest concern (43%) is income inequality. There is a strong feeling amongst Generation Y (Millennials) that they are being left behind in this era of flat wages growth and massive home and living cost increases. Our recent ABS income and wealth analysis shows that Gen Y as a whole have 7% of Australia’s private wealth while they are more than twice this (15%) of the population while the older Boomers have an economic share three times that of their population share. There is a growing series of forecasts indicating that this may well be the first generation since the Great Depression which will end up behind their parents economically.

Big challenges but are they too big…

This study shows that Millennials, particularly in the developed world feel somewhat disempowered with a sense of high responsibility yet low influence to shape the challenges of the environment, social equality and direction of the country. They are key contributors to society and believe that working within the system rather than radically fighting against it in a revolutionary approach is the best way forward.

Moving on…but to full time roles

Almost 1 in 2 (48%) expect to leave their current role within 2 years while less than 1 in 3 (31%) plan on still being there in 5 years. While the gig economy sounds exciting, almost three times as many (70%) would prefer full time work than a freelance work life (25%). Yet the challenge for Australian Gen Y’s is that while unemployment is still quite low (5.7%), the workforce is trending away from full time roles. In the last year, the Australian economy has added 130,000 part time roles but lost 40,000 full time roles.

The dot com kids see the downside of tech

Millennials are more negative than positive when it comes to technology particularly regarding the impacts it is having in the workforce. While it aids productivity, economic growth and flexibility, the majority of this generation believe that it will force them to retrain (51%) and that it is making the workplace more impersonal and less human (53%).

But they are warm towards Gen Z

The new next generation (Gen Z, born since 1995) is well regarded by Gen Y with most Y’s (53%) believing that the next generation will positively transform the workplace. They also believe that Gen Z are well equipped and “futureproofed” in the workplace because of their creativity, flexibility and engaging leadership style.

WATCH MARK'S FULL INTERVIEW ON WEEKEND SUNRISE HERE

How to teach Gen Z to be Collaborative, Innovative and Responsive

Monday, February 06, 2017

When I was eight years old, my third-grade teacher, Ms. Calov, taught me to be an inquisitive learner. Through her contagious enthusiasm, she turned me from an ordinary kid who did only what was required, to a perceptive student who asked for more projects and always connected what I learned to the world around me.

The kinds of soft skills I learned from Ms. Calov are increasingly important for Gen Z, the generation cohort after millennials. To be prepared for the jobs of today and tomorrow, these students need to be collaborative, innovative and responsive to their environment. Here's a look at how today's teachers are fostering curiosity, creativity and other skills in their students, with help from technology.

- Mark McCrindle

Encouraging collaboration

School is no longer just a place to learn math, science and writing. It’s a place to learn interpersonal skills that will never become outdated—like how to collaborate, resolve conflict, clearly communicate ideas and teach others. Technology can encourage this kind of interaction. For example, since Gen Z is the first digital-native generation, teachers are asking students for help using technology and to show their peers how to use new tools. Students are working on group projects when they’re in separate physical locations, developing their ability to communicate through written feedback and explain the thinking behind their suggestions.

Encourage lifelong learning and innovative thinking

Teachers today are encouraging students to have a love of learning and adopt an entrepreneurial mindset, so they can adapt to new careers and industries. The average employee tenure in the U.S. is 4.2 years, a decline from 4.6 years two years prior. In Australia, we’re experiencing a similar effect where employees are staying in jobs for a shorter duration—the Australian average is three years. This means Gen Z will have 17 different jobs in their life, and they’ll need to continue to learn new skills and how to use new tools as they progress in their careers. By designing learning tasks that have a real-world application, teachers are engaging their students as problem finders and problem solvers—roles that are crucial in any job.

Foster an adaptive mindset that’s ready for change

As the economy shifts and new jobs like VR engineers and cognitive computer analysts emerge, the next generation will need to be able to learn quickly and connect the dots between related topics. To teach these skills, many teachers are “flipping” learning —asking students to reflect on global issues and synthesize information from videos, podcasts and written material, instead of simply assigning a chapter in a textbook.

Six decades later, I still remember Ms. Calov. Her inspiration reminds me of a Mother Teresa quote: “I alone cannot change the world, but I can cast a stone across the waters to create many ripples.” Ms. Calov created many ripples by fostering a love of learning and empowering a community of learners. But with technology, every teacher can teach students lifelong skills to carry them through their careers.

Learn more by watching Mark’s recorded talk from Education on Air.

The Average Australian on Australia Day 2017

Wednesday, January 25, 2017

Australia is home to 24,341,000 people living in more than 9 million households comprised of more than 300 different ancestries. And while Australians are anything but average, what would a statistically “average” Aussie look like?

Statistically, they are more likely to be female (50.5% of the population) than male (49.5%).

The average Australian is an older Gen Y or younger Gen Xer (born between 1979 and 1981), aged 37 (36 for a male and 38 for a female).

Australians at birth can expect a life expectancy to exceed 80 years, with women on average outliving men by 4 years.

However, our average 36 year old male can expect to live another 45.5 years to 81.5 while the average 38 year old female should get another 47.3 years of life expectancy, taking her to 85.3.

The average Australian adult is employed most likely full time (68% of all employees), gets to work by car (69% of all commuters) and is probably earning $60,330 per year (average of all employees, before tax). After tax, and as a household, their total disposable annual income is $88,551.

They will take 4 days of sick/carers leave (5 for women) and 16 days annual leave in a year and work on average 32 hours per week (women) or 41 hours per week (men).

They live in a capital city (3 in 5 of us) in a household of around 3 people, have around 2 cars for their household, and average 14,000 kilometres per year.

They are paying off their 3-bedroom home, they have lived there for 5 years and have $427,847 equity in their home which is the bulk of their wealth. And they have $65,880 worth of stuff - the total of all of their other household possessions (furniture, equipment, household goods – but not house and cars).

The average Australian identifies their religion as Christianity (61%), has completed Year 12, and gone on to complete a post-secondary qualification. They most likely have had a child, and they live in a household with a pet.

The average Australian man is 178cm tall and weighs 85kg while the average woman is 164cm and weighs 68 kg. The World Health Organisation states that a Body Mass Index (BMI) of 25 to 29 is overweight which is where the average Australian sits with 27 for a male and 26 for a female.

But they are doing something about it and exercise on average 3 times per week, getting 7.2 hours of sleep per night and they also have private health insurance.

And on average they’ve most likely experienced and contributed to the great Australian value of community and mateship. It is a “come in for a cuppa” culture that gives a “no worries” welcome to someone regardless of how average or not they may be.

Happy Australia Day, Australia!

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