For Our Future – Regional Forestry Collaborative Leadership Program

For Our Future – Regional Forestry Collaborative Leadership Program

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Industry Advisory Groups - FWPA encouraging participation

Industry Advisory Groups - FWPA encouraging participation

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Facilitating Technology Transfer

Facilitating Technology Transfer

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Investing in Research and Development

Investing in Research and Development

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Building Capacity and Education

Building Capacity and Education

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Promoting our Industry and Products

Promoting our Industry and Products

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Industry Image Library

Industry Image Library

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FWPA Review of Performance

FWPA Review of Performance

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We would welcome your involvement in an FWPA interest group.

We would welcome your involvement in an FWPA interest group.

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Budget 2018 leaves a bit to ponder

Budget night each year is usually something of a night out for economists. It is really the only day in the year when the nation listens closely to the exponents of the dismal science. While Budget 2018 had its moments for economic analysis, the reality is that it was more political than economic in tenor, which leaves us with some things to ponder, but not really a lot to analyse. Our brief analysis picks up the key points, some of which are expanded upon in this edition of Statistics Count.

Dwelling investment ~ forecast to be down 3.0% in 2017-18, growing 1.5% in 2018-19 and flat in 2019-20

Economic growth ~ GDP is forecast to be 2.75% in 2017-18, rising to 3.0% in 2018-19

Employment growth ~ forecast to grow 2.75% in 2017-18, falling to 1.5% growth in 2018-19, which as the Australian Financial Review’s Jacob Greber observed is below the rate of population growth

Unemployment ~ forecast to be 5.6% in JQ’18 and 5.25% in JQ’19

Wages growth ~ forecast to rise 2.25% in 2017-18, rising to 2.75% in 2018-19 and a solid 3.25% in 2019-20

Household spending ~ forecast to grow a soft 2.75% in 2017-18, rising to 3.0% by 2019-20

Non-mining investment ~ forecast to be up 10.5% in the current financial year, moderating to 5.5% in 2018-19

How do we encapsulate this information in a way that works for most of us?

At the outset, we can say that Australia’s economic fundamentals appear to point towards the mid-range of growth in economic activity, at a level that is unlikely to over-stimulate demand and create inflation. 

The budget seems to have only limited inflationary impacts. In part this is because the expected rise in employment and wages (coupled with the modest tax cuts for those on lower incomes) is quite mild and to some extent offsets each other. That is, stronger wages growth is offset by softer employment growth.

Household spending will rise a little faster than currently, but as Greber points out:

“It’s still a long way short of the 3 to 4 per cent rates of spending growth that characterized the boom years of the early 2000s.”

Business investment, other than the mining sector has a link to the Government’s proposed infrastructure spending, which gives a clue about the extent to which Government expenditure will continue to be a major driver of the economy.

Somewhat politicized the budget circus may be, but behind the hype and announcements, the thrusts and counter-thrusts, are important data that informs the future of the Australian economy.

Events Calendar

From stakeholder engagement to industry promotion, events are a vital and valuable communication channel. If you have an industry-related event that you would like listed here, please contact us.

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Our 5 Company Programs

Promoting the Advantages of Wood Products

Promoting the Advantages of Wood Products

Promoting the benefits and use of forest and wood products, in line with community attitudes, environmental awareness and market trends.

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Aligning Products to Market Needs

Aligning Products to Market Needs

Ensuring that the industry’s products and services are fit-for-purpose, appropriately aligned to market needs and their availability better communicated to key influencers.

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Assisting Value Chain Optimisation

Assisting Value Chain Optimisation

Increasing the value and volume recovery from existing resources to ensure that all wood fibre is utilised to its highest and best purpose.

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Increasing Resource Availability and Reducing Risk

Increasing Resource Availability and Reducing Risk

Increasing the availability of wood fibre to support an expanding market and associated manufacturing capacity.

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Impacting Decision Making and Industry Capability

Impacting Decision Making and Industry Capability

Ensuring that the industry has the skills and systems necessary to support improved decision making by all players across the value chain.

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FWPA Newsletters

FWPA publishes the industry newsletters, R&DWorks and ForWood. In addition, we have the WoodSolutions newsletter addressing design and build specifiers – architects, building designers, engineers and others involved in specifying the choice of building materials, as well as the Wood.Naturally Better. ™ Partner Update. ForestLearning is FWPA’s quarterly newsletter that provides information on Australian forests and forest-based products to teachers and educators, school children and the public.

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