Now may be the time for WA tradies to consider upgrading their machinery and equipment insurance, following new research suggesting investment in this area is on the rise.

The Chamber of Commerce and Industry for Western Australia (CCI) said ramping up machinery and equipment spend is on the agenda for many businesses hoping to overcome challenging economic conditions. Adding machinery and equipment cover to your existing tradesman insurance policy keeps you protected from a range of issues, such as theft, accidental damage or vandalism.

Aside from equipment investment, more than half of companies are also looking to develop new products, hire additional staff or train their existing workforce. This is despite the latest Westpac-CCI Survey of Business Expectations recording a drop in confidence among organisations regarding the long-term economic outlook.

Around 43 per cent of WA firms expect the economy to deteriorate over the next-year – up from one-third in December. However, the research revealed businesses are not allowing this to get in the way of their investment plans. 

More than one-fifth of respondents intend to increase their capital expenditure in 2014. This was particularly notable in the non-mining sectors, including property, insurance and community services.

John Nicolaou, CCI chief economist, said the survey is positive news for businesses, despite a lack of optimism over the next 12 months.

"With the economy in transition as the resources investment boom reaches its peak, this is a positive sign that other sectors of the economy will start to play a greater role in driving economic growth in coming years," he stated.

"Cost pressures continue to impact operations with input costs like rents, energy and materials, as well as continued growth in wage costs, all adding to the cost of doing business and impacting on the bottom line."