The shortage of skills in Australia has been listed as the main factor holding back private companies in their effort to be internationally competitive, a recent survey reveals.
According to the survey conducted by professional services firm KPMG, 92% (out of 100) respondents listed the skills shortage as the primary issue of concern for them.
"Following last year's survey, we have seen a significant increase in private companies providing flexible working hours, subsidising external study costs for employees and offering additional superannuation contributions or annual bonuses,'' KPMG Middle Market Advisory partner Don Abell said.
KPMG said that over two-thirds of private companies had implemented attraction and retention programs and nearly 40 per cent of companies are bringing in, or considering bringing in workers from overseas.
The survey said that private companies were finding it difficult to compete internationally also because of the time and cost of transport resulting from inefficient ports and rail networks.
"The general feeling is that infrastructure in all states is failing to keep pace with population growth and the needs of businesses,'' Mr Abell said.
"While the larger companies can take advantage of economies of scale or even build their own infrastructure, Australian private companies are relying on existing infrastructure.''
KPMG said that 85% of the 100 companies surveyed listed infrastructure, such as ports, roads and rail networks, water and electricity grids, as a key issue.
However, private companies remained optimistic about the future, with more than half of respondents expecting their revenues to increase by between 6 and 20% in the next 12 months, KPMG said.
Meanwhile, KPMG said that private companies were still grappling with the potential costs and changes that could come with climate change.
"Over half the respondents admitted they do not fully understand the potential effects on their businesses and over two-thirds of respondents have no intention to act on climate change in the next 12 months,'' Mr Abell said.
The respondents to KPMG's 2008 Private Companies Survey covered the manufacturing, retail trade, wholesale trade and construction sectors.
