The brutality of the drought has seen businesses shed staff and has had a negative impact on the community.
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A report from the NSW business chamber stated Central West business confidence levels is low. Less than half of the Central West respondents hired anyone new from April to June.
Western NSW Business Chamber regional manager, Vicki Seccombe, has concerns this report could foreshadow significant deterioration in labor market conditions.
"The impact of the drought cannot be overstated and is continuing to hurt businesses right across the state," she said.
Orange based Weston Ryan, principal at pmwPlus, works with businesses across the Central West. The professional services firm has found there is a spectrum of success with some businesses doing well while others are struggling.
"Some businesses are optimistic in their forecasts. These are the businesses that have developed a niche, or differentiated their operations from similar business. I can think of examples that are servicing the mines, vines and tourism and some of the tradies," he said.
"Other businesses are finding it tougher and that affects their mood.
"Some of the factors leading to pessimism include difficulty finding skilled labour, obtaining finance from traditional lenders like banks and obviously people relying on spending from primary producers who have been hit really hard with the enduring drought," Mr Ryan said.
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Ms Seccombe said it is time for the government to work collaboratively and provide support to the regional businesses that are hurting.
"Given the severity of the drought and impact of the community, it is time for all levels of government to work more collaboratively to support businesses who are hurting," she said.
"The most recent passing of the tax package may provide some good news as consumers will have more money in their pocket to spend on discretionary items- but this survey shows Western NSW is going to need more than that."
Mr Ryan said the confidence levels of regional businesses can change quite quickly, especially if people start buying locally.
"That mood can change if people spend their tax cuts locally and of course, if we can capture some water on our farms and orchards and in our catchments," he said.
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Grace Ryan
Deputy Editor at the Central Western Daily, Orange. You'll mostly find me tinkering in social media and newsletters. Working hard to get our stories in front of your eyes.
Deputy Editor at the Central Western Daily, Orange. You'll mostly find me tinkering in social media and newsletters. Working hard to get our stories in front of your eyes.
