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From the President
Trevor Goodwin LICM CCE National President
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elcome to the first edition of AICM’s Credit Management magazine for 2022. I thank members and their colleagues and our partners for your support in 2021. I hope you had an enjoyable Christmas and a happy New Year, and a relaxing holiday period for those who were able to take advantage of some well-earned annual leave. As we enter 2022 it appears we face another year of uncertainly. The ongoing concerns with Covid has impacted on the Australian economy which is struggling to recover as strongly as anticipated. Consequently, we are starting to see an increase in payment arrears and defaults, collection activity and court actions with the expectation insolvencies will increase in 2022. In addition, the COVID pandemic disruptions have posed significant challenges for supply chains globally. Multiple national lockdowns continue to slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result. In particular a shortage of building materials worldwide resulting from COVID-19 disruptions, coupled with natural disasters from freak storms to bushfires, have heaped pressure on builders. On top of that, a labour shortage is making it difficult to find tradespeople, giving workers the power to command huge wages. The labour market will still be constricted with a recent report by Morgan Stanley predicting the unemployment rate will decline to 4.2% by the end of 2022 and contracting even further in 2023 to near record lows and with worker shortages continuing to cause issues for business. 2021 was a year of accomplishment for the AICM despite the inability to
hold as many face to face events as we had planned. The Institute was still able however to offer a number of important in person professional events in 2021, including seminars, the WINC and Awards functions as well as social events in most Divisions. The final event for our members in 2021 were the prestigious Pinnacle Awards where we recognised a number of our credit professionals and business consultants for their outstanding work performance in 2021. Congratulations to all award winners and I look forward to seeing a strong field of nominations again in 2022. With a gradual recovery in the economy and growth in business activity we are seeing a rise in credit enquiries and in 2022 sound credit management principles will be important for our AICM credit professionals. Now is an important time for credit personnel to be technically upskilled and qualified through the AICM learning and development courses and the Certified Credit Executive program. AICM provide a range of qualifications and short courses for those who are just beginning their careers in credit or for those who are seeking the next step and to move into management roles. The 2022 calendar offers an exciting program of events including professional seminars, workshops, and economic updates, as well as a number of webinars which have worked well for the Institute under Covid restrictions. Our website is a ready reference for you to not only stay aware of our policy submissions made on your behalf but a source to check your CCE qualification points as well as the calendar of our events and back issues of the Credit Management magazine. In addition, members have access to ➤
6 CREDIT MANAGEMENT IN AUSTRALIA • January 2022
