Election opportunities

As we point out today, the election outcome has thrown up a number of big-picture issues that remain very much up in air. But you know something? I looked at the result and apart from one major issue, could see lots of opportunities for smart companies.

For one, we are going to get much better broadband. It might not be the colossal $43 billion Labor dream, but it will certainly be bigger than the plan that the luddites in the Coalition cobbled together. Superfast broadband that works across Australia and helps us reach out to the world is the single biggest infrastructure development that businesses need. And it appears that the independents who will be trading policies with the major parties will put this on their wish list.

Secondly, there is going to be a focus on regional development and small business. The Independents are focused on their local communities. And three of them are from the National Party. They will support the mantra of sustainable development – with a focus on regional areas – which will bury Kevin Rudd’s big Australia once and for all. This means more money could flow into large regional towns, coastal towns and development of small businesses within the towns. Combine that with bigger, better broadband and the possibility of selling services to these people operating outside our big cities just got easier. Financial services, better health provision, online education courses… there is no end of new opportunities that might spring from superior broadband infrastructure and growing demand from our cities and regional areas.

What’s worrying me? What is the one major issue that has got me really alarmed? There is no doubt that we are turning our back to the outside world. This election was remarkable for its insular, short-term focus. There was no Keating urging us to face Asia and understand our place in the new world. There was no Chinese speaking Rudd, lobbying for seats on the world stage. Even the suburban John Howard understood that we now operate in a global economy within global supply chains and happily hopped on planes to be part of the global conversation.

But this election, we stepped back 20 years. Instead Australians felt comforted at the sight of our Prime Minister in her Altona weatherboard and Abbott in his red speedos flipping sausages at the local lifesaving club.

Both of them made it part of their campaign to talk of their renewed focus on “home” with almost no focus on foreign affairs policies throughout the entire election campaign.

Throw some Independents into the mix who are very focussed on their local and regional communities and our vision of a modern outward-looking Australia could be severely compromised.

This means that smart companies may be tempted to stay close to home when looking for opportunities. The temptation is greater when the cost of expanding overseas is taken into account, especially after both sides have dumped some very good export expansion programs.

But this is a fool’s paradise. The Australian market is too small to really nurture tomorrow’s large companies and the competition from global supply chains will punish inwardly focussed companies that ignore the rest of the world.

Regardless of the outcome of this election there is going to be a lot of change. And change is always good for smart companies.