PERTH (miningweekly.com) – Queensland’s small- and medium-sized businesses are benefitting from the resource sector’s redirection of spending away from overseas and interstate suppliers.
New data by the Queensland Resources Council (QRC) has shown that spending by the resources sector on local small and medium-sized businesses have increased by 19% over the last 12 months.
“In 2017/18, the Queensland resources sector purchased A$19.3-billion worth of goods and services with Queensland businesses, or 69%, of the total spend, which compares to A$400-million, or 1%, with international suppliers. That’s down more than 33% on the previous year,” QRC CEO Ian Macfarlane said.
“As a result of a concerted effort by the resources industry to buy locally interstate spending was A$8.5-billion, down from A$8.6-billion a year earlier. In total the sector spent A$28.14-billion locally, interstate (including New Zealand) and internationally.
“This is the first year the sector has recorded an increase in Queensland spending since 2011/12, which is good news for Queensland creating more investment, more exports and more jobs.”
Macfarlane noted that more than A$8-billion was invested outside the south-east with 8 000 regional suppliers benefiting from the resources sector.
A recent QRC survey of resource CEOs found 41% had engaged more local suppliers as a direct result of the increasing capabilities of suppliers in their region.
“By spending in Queensland the sector promotes the long-term sustainability of local economies and boosts employment and economic growth by expanding local industries,” Macfarlane said.