Industry Analysis & Industry Trends
Although the storm has cleared, the Finance subdivision is expected to experience sluggish growth. Despite major equity markets worldwide climbing to new highs, the lending business appears sluggish. Uncertainty surrounding Australia's residential property market has dampened investor enthusiasm, and has hit the nation's largest residential property developers hard. Softening commodity prices have also turned down the exuberance previously experienced. While the pre- and post-crisis energy that gripped the nation is currently absent, the subdivision is expected to perform solidly in 2012-13. This year, industry revenue is forecast to grow 4.2% to $279.2 billion.
The positive turn in events will cap off a particularly challenging five year period for the subdivision... purchase to read more
Industry Report - Industry Investment Chapter
The capital-to-labour ratio for the Finance subdivision is low. A defining aspect of finance industries is that the cost of labour is often the highest or second-highest cost for businesses. As such, to maintain and enhance margins, businesses have sought to limit employment growth where possible, instead focusing on boosting productivity to facilitate growth in revenue. The most common method in driving productivity gains has been through investments in technology.
Technology has resulted in increased automating, better information management and an overall increase in efficiency. Furthermore, many businesses have leveraged the internet to reach new geographic markets and service existing markets... purchase to read more