Top growth industry revealed: How brokers can join the action

by Mackenzie McCarty05 Jul 2013

In case you needed yet another reason to consider diversifying into SMSFs, IBISWorld has just revealed that superannuation is expected to be the top growth industry in Australia over the next 12 months.

“Superannuation funds top the list of growth industries with an impressive 40.5% rise anticipated in 2013-14, followed by iron ore mining, wind and other electricity generation, online shopping and internet publishing and broadcasting,” reads the IBISWorld Industries to fly and fall report.

MFAA CEO, Phil Naylor, tells Australian Broker the news is no surprise and that brokers should seriously consider moving into the area – provided they do their research.

“It is undeniable that the super fund industry will continue to grow. Equally certain is the growing number of super funds that are looking to hold property and more particularly borrowing finance to do so,” says Naylor.

“This trend gives MFAA credit advisers a great opportunity to assist SMSFs which wish to access finance. This provides an extra dimension for them to provide credit advice to clients.”

“However, it is a more complex product to advise on and source and it may not be right for everyone. Brokers who are interested should view our introductory video to be aware of the pros and cons.”

Once they’ve done this, if brokers are still keen to move into the area, Naylor recommends they complete a program such as the MFAA SMSF lending accreditation.

“This is an area which ASIC is watching closely, so it's important that brokers are properly accredited.

Industries to fly

Industry

Revenue 2012-13 ($million)

Revenue 2013-14 ($million)

Growth (%)

Superannuation Funds

230,978.5

324,582.2

40.5

Iron Ore Mining

74,546.4

91,632.7

22.9

Online Shopping

10,900.1

12,350.0

13.3

Internet Publishing and Broadcasting

1,425.4

1,605.9

12.7

Wind and Other Electricity Generation

1,496.4

1,665.5

11.3

 

Industries to fall

Industry

Revenue 2012-13 ($million)

Revenue 2013-14 ($million)

Decline (%)

Video and DVD Hire Outlets

661.6

580.3

-12.3

Automotive Electrical Component Manufacturing

1,632.4

1,523.0

-6.7

Heavy Industry and Other Non-Building Construction

68,500.0

64,800.0

-5.4

Book Publishing

1,964.5

1,881.0

-4.3

Mineral Exploration

2,057.1

1,984.7

-3.5

*Source: IBISWorld

 

 

 

 

 

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