In a surprising development franchising is set to overtake manufacturing in terms of employment numbers during this decade. Recent treasury modeling has suggested that the number of jobs in employment in
manufacturing is expected to shrink by 17 per cent this decade, wiping out 170,000 jobs.
This supports the positive attitude of the franchise community according to Brian Keen founder and director of How To Franchise Simply. “Ten years ago manufacturing in Australia employed 1.08 million people, which was 12 per cent of the total number of jobs,” quoted Keen. “And today it has shrunk to 990,000, or 8.8 per cent of total jobs.”
Keen explains this and more in his regular free seminars in South East Queensland and in his online webinars. “With my new DIY concept business owners can save $10,000s on normal franchise set up costs and the timing is right for small business to take the lead in job growth. Micro- franchises with 3-10 outlets can be very successful and self-financing,” says Keen, who passionately believes they are ideally suited for regional expansion.
Talking further Keen drew attention to what he calls a most interesting statistic, “While manufacturing has lost 90,000 jobs in the past 10 years, and it is expected to shed almost twice as many in the rest of this decade,” he said, “the Griffith University Franchising Australia 2010 study shows the franchise sector grew it’s employment statistics by 40% during 2009/2010 alone, from 500,000 to 700,000.”
Keen has a long and successful relationship with franchising. As well as associations with franchises Ultra-tune, Donut King and Brumby’s, Keen helped establish many new franchises, including the simple and successful Jim’s Mowing. He also established six of his own franchise groups that grew to 120 outlets over a five year period.
A promising outlook for the future is given in a survey by PricewaterhouseCoopers which showed franchising outperforming many employment sectors. “Its 2010 survey backed up findings from the previous year’s survey (conducted during the GFC) in which franchise systems were forecasting growth of 12 to 15 percent.”
Keen also explained that the 2011 BRW report showed franchisor revenue (which is of course a function of franchisee revenue in most systems) growing by 12 percent and profitability by 19 percent. And the outlook is optimistic, with franchise systems forecasting a growth of 13 percent for 2011, and 49 percent over the next three years – and growth is expected to continue at a healthy rate.
‘With the Australian economy jumping somersaults over many other economies in the developed world, the scene is set for franchising to continue its strong run in 2011 and onward,’ he said.
Keen is presenting free seminars at 6pm on Monday 11th July at Fitzy’s Loganholme, Tuesday 12th at Travelodge Garden City and Wednesday 13th July at Nerang RSL. Seats are limited so booking is essential.
For more information visit howtofranchisesimply.com.au or call Brian Keen on 0417 211 366
