BUSINESSES in Forbes should have an online presence to help them remain competitive during the drought, Forbes Business Chamber president Margaret Duggan says.
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Currently 100 per cent of the Central West is in drought and of that 48.2 per cent is in intense drought, data from the NSW Department of Primary Industries shows.
Online shopping is having an impact on businesses in Forbes and surrounding areas, Ms Duggan said.
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"Our local businesses have to have better product knowledge and service to combat that," she said.
Ms Duggan encouraged business owners to get their own website developed or at the very least have a social media account to help promote their services and help them remain competitive.
While the current drought was severe she said it was nothing new and many business owners were prepared for the fact they would not break any sales records this coming Christmas period.
"The drought is having an affect, but it nothing new and we're used to it," she said.
"Businesses have been there and done that and business owners are a little bit wise with regards to stock levels."
In Parkes, this community has benefited from the Inland Rail, Pacific National and the Northparkes Mines expansion during the drought, but the town's business head said these operations could spend more money locally.
Our local businesses have to have better product knowledge and service to combat the online marketplace.
- Forbes Business Chamber president Margaret Duggan
That is the sentiment from Parkes Business Chamber president Geoff Rice who said these large corporations continue to award contracts to many businesses from outside the area.
"It's good to see some of that money flowing through into food and retail [in Parkes], but businesses that are completely rural based are really struggling," he said.
Western NSW Business Chamber regional manager Vicki Seccombe said the impact of the drought could not be overstated.
"It's continuing to hurt businesses and our local economies right across the Central West," she said.
"Businesses are reporting substantial decreases in cashflow, falling sales and revenue, while operating costs are on the rise."
The latest Business Conditions Survey revealed that businesses have shed staff during the past quarter.