Resources sector CEOs plan to spend more in 2018

A SURVEY of 27 resources company chief executives has found half plan to spend more with local suppliers across regional Queensland in 2018 and none plan to spend less.

Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said resources companies spent $6.2 billion – the equivalent of $120 million every week - with almost 9000 businesses across regional Queensland last year.

“The resources sector directly employs more than 38,000 Queenslanders, with almost 80 percent of those men and women working in regional Queensland,” Mr Macfarlane said.

“We support and rely upon thousands more staff in the regions where we work to supply equipment, fuel, food, clothing and a full range of services.

“The latest survey of resources company CEOs shows half plan to spend more and almost 20 percent say they plan to spend ‘substantially’ more with their local suppliers.

“Working with local suppliers is an investment in building local capabilities and in turn create local opportunities.

“Not one CEO surveyed said they planned to cut spending with local suppliers this year. That’s great news for business and jobs in regional Queensland.

“It’s in the interests of resources companies and the sector to work with local suppliers to develop skills and support these businesses and the communities that depend upon these businesses.”

The Queensland resources sector now provides one in every $6 in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State - with almost 7000 businesses in the Greater Brisbane region - all from 0.1 percent of Queensland’s land mass.

Mr Macfarlane said the QRC survey results were consistent with the Productivity Commission’s Transitioning Regions report last year, which stated:

“Mining regions continue to have high incomes and have substantially more people employed than prior to the boom. Many regions with a high concentration of activity based on mining have transitioned well from construction to production following large expansions in capacity during the mining investment boom”.

www.qrc.org.au

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