Capital Expenditure: Definition of Insanity
The definition of insanity: doing the same thing over and over yet expecting a different result. The time has come to look beyond the next quarter and to start planning for the future...
A lot is now made of global economic developments. We live and die by the latest interest rate announcements, job figures and trade numbers, not only from Australia, but most other countries in the world. We have become preoccupied by headlines and sound bites and are missing meaningful trends in our own backyard.
The latest HR Quarterly Index Dashboard Report indicates that for the past 6 months there has been a 6% decrease in the amount of money business owners and managers are assigning to capital expenditure. This indicates that short term planning is being favoured over longer-term strategies.
Now this in isolation is no need for concern yet the rate has been consistently low since 2008. Not surprisingly, business results have also been consistently modest since then. The correlation is obvious, yet after nearly 6 years nothing has changed.
The definition of insanity: doing the same thing over and over yet expecting a different result. The time has come to look beyond the next quarter and to start planning for the future.
The HR Quarterly Index Dashboard Report is a national research initiative that reports on the business and human resource developments of the past quarter. The report evaluates measurements of business confidence, policy changes, market volatility and people issues, identifying the perceived impact on business performance.
The HR Quarterly Index Dashboard Report provides HR professionals, business advisors, industry bodies, governments and business owners and managers with insights into the broader industry issues and their effects on the business sector.