Publications

Taranaki Business Survey

RESULTS OF THE MAY/JUNE 2017 SURVEY

Taranaki Business Survey • Monitors economic confidence by Taranaki businesses and their views on key business issues.

• Undertaken by Venture Taranaki 6-monthly since 1999.

• Survey sent to over 1500 Taranaki businesses.

• Cross section of industry type, location and size.

• Spans a number of standard economic questions.

• Plus a special topic: Destination Taranaki: – Interest from Aucklanders to relocate here – Tourism/visitors – infrastructural needs

NZ Economic Conditions: next 12 months 2017 Holding firm

New Zealand Economy - next 12 months Improve

Remain the Same

Deterioriate

Don't know

70%

Positivity and green shoots?

60%

50%

• Same: 51% (up from 45%) • Improve 42% (down from 46%) • Deteriorate – 5% (was 6%) • Don’t know: 2%

40%

30%

20%

10%

Mar-17

Nov-16

Jul-16

Mar-16

Nov-15

Jul-15

Mar-15

Nov-14

Jul-14

Mar-14

Nov-13

Jul-13

Mar-13

Nov-12

Jul-12

Mar-12

Nov-11

Jul-11

Mar-11

Nov-10

Jul-10

Mar-10

Nov-09

Jul-09

Mar-09

Nov-08

Jul-08

Mar-08

Nov-07

0%

Industry conditions: next 12 months Industry conditions - next 12 months Improve

Remain the Same

Deterioriate

Don't know

Positivity continues to edge?

70%

60%

50%

• Remain same 51% (up from 50%) • Improve 45% (up from 42%) • Deteriorate 6% (was 16%) • Don’t know: 3%

40%

30%

20%

10%

Mar-17

Nov-16

Jul-16

Mar-16

Nov-15

Jul-15

Mar-15

Nov-14

Jul-14

Mar-14

Nov-13

Jul-13

Mar-13

Nov-12

Jul-12

Mar-12

Nov-11

Jul-11

Mar-11

Nov-10

Jul-10

Mar-10

Nov-09

Jul-09

Mar-09

Nov-08

Jul-08

Mar-08

Nov-07

0%

Sales: next 6 months Sales outlook - next 6 months Improve

Remain the Same

Deterioriate

Potentially better six months ahead than same time last year?

Don't know

70%

60%

50%

40%

• Improve: 51% (was also 51% last time) • Remain same: 42% (also the same) • Deteriorate: 6% • Don’t know: 1%

30%

20%

10%

Mar-17

Nov-16

Jul-16

Mar-16

Nov-15

Jul-15

Mar-15

Nov-14

Jul-14

Mar-14

Nov-13

Jul-13

Mar-13

Nov-12

Jul-12

Mar-12

Nov-11

Jul-11

Mar-11

Nov-10

Jul-10

Mar-10

Nov-09

Jul-09

Mar-09

Nov-08

Jul-08

Mar-08

Nov-07

0%

Taranaki business: concerns High concern

Factors Impacting growth May/June 2017 2.5

2

1.5

1

0.5

0

Low concern

What’s changed?

What's changed since Dec 2016?

June 2017

Dec 2016

2.5

2

1.5

1

0.5

0

Competition and costs

Other factors impacting on business • “Freedom camping in the city still not being addressed by Council” • “Lack of Taranaki loyalty – use out of town suppliers” • “Chinese product being dumped on NZ” • “Rate of technology change and need for staff to keep up” • “Competition from Internet sales” • “Delays with consents” • “Not being able to ship containers out of Port Taranaki”

Employee numbers – next 6 months Employee numbers - next 6 months Increase

Remain the same

Decrease

Don't know

90%

Holding firm

80%

70%

71% anticipate employment levels to remain the same.

60%

50%

40%

24% - increase.

30%

20%

outweighs ….

10%

May-17

Jan-17

Sep-16

Jan-16

May-16

Sep-15

May-15

Jan-15

Sep-14

May-14

Jan-14

Sep-13

May-13

Jan-13

Sep-12

May-12

Jan-12

Sep-11

Jan-11

May-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

May-08

Jan-08

Sep-07

May-07

0%

5% expect staff numbers to decrease

Skill shortages or difficulty hiring?

Experiencing Skill Shortages Yes 100.00%

90.00%

No

Skill shortages up slightly.

80.00% 70.00%

72% - no skill

60.00%

shortages

50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

28%

of Taranaki businesses report skill shortages or difficulties recruiting appropriate staff.

Skills shortages mentioned • • • • • •

Chefs, senior F&B Mechanical fitters Trained scaffolders Skilled carpenters Bakers Medical staff – including after hours personnel • Construction industry and technical • Plumbers

• Immigration laws are making it harder • Hard to find skilled staff

• Worker attitude challenging • Finding reliable unqualified labourers is virtually impossible.

Special Topic: Destination Taranaki • Tourism Infrastructure needs • Aucklanders relocating to the region

Have you noticed increased interest from Aucklanders looking to leave the City?

Customers/clients 45

41.57

40 35

30.72 30 25 20 15

13.86

13.86

Strong Interest

N/A - don't know/no clients in Auckland etc.

10 5 0

No interest

Some Interest

Any Interest from potential employees looking to leave Auckland?

60

52.53 50

40

31.65 30

20

10.76 10

5.06 0

No interest

Some Interest

Strong Interest

N/A - don't know/no clients in Auckland etc.

Any Interest to leave Auckland - friends & family?

50 45

44.1

40

32.92

35 30 25

20

13.04

15

9.94 10 5 0

No interest

Some Interest

Strong Interest

N/A - don't know/no clients in Auckland etc.

Interest in Leaving Auckland? comparison customers/clients

Potential employees

Friends/family

60

50

40

30

20

10

0

No interest

Some Interest

Strong Interest

N/A - don't know/no clients in Auckland etc.

Prime reasons to leave Auckland What are the primary factors Aucklanders wish to 'escape' from?

90

82.17

80 70

68.22

60

50 40

38.76

30 20 10 0

19.38 13.18

4.65

Factors Taranaki could use to help encourage

Aucklanders to relocate to Taranaki • “Our arts, mountain, music, cafes – small town with large town facilities”.

• “Clean, green image” • “Family appeal – more activities for families” • “Promote lifestyle and properties for sale” • “Work life and balance” • “Promote online working - both cheap and feasible”.

Factors Taranaki could use to help encourage

Aucklanders to relocate to Taranaki • “Stop trying to attract the people, start attracting the companies and the people will come”.

• “Attract high value jobs and high value employees will follow” • “Better/more reliable road access in/out and more flights (Auckland/Wellington)” • “Do we really want Aucklanders to come here?”

Tourism Infrastructure

How well has existing public amenities met the increased visitor/tourist demand in Taranaki?

45

40 35 30 25 20 15 10 5 0

1 - Not very well

2

3

4

5 - Very Well

2.7/5

What infrastructure or amenities need to be added-improved (if any?) to accommodate more visitors to the region?

• • • •

Carparks Toilets Rubbish bins Roading/walkways

• Freedom campers

Amenity Comments “More parking at national park; need more rubbish bins on coastal walkway; better signage on roads to national park; the need for public toilets at main tourist areas, especially on walkway”.

“Toilets, rubbish, signage” “Mt Taranaki facilities are under strain from visitors. Full and overflowing car parks; freedom campers” “Better maintenance of tracks and walkways, especially the Mountain” “Campervan parking”

General comments - tourism • “Keep having big events to bring the tourists in” • “Our walks and walkways are superb - should be marketed more”.

• “We are doing very well for our size – keep promoting”.

• “We should charge – local and tourism entry fee for the pools, galleries etc” • “Need a couple of high excitement all weather activities to supplement outdoor activities” • “Pouakai crossing needs to be developed to a great walk standard with excellent facilities”.

General comments - Taranaki • “Need a gondola” • “Bring on the new upgrade to Mt Messenger highway”.

• “Provide campervan overnight sites”.

• “Better facilities for freedom campers” • “Develop a round the Mountain cycle trail – they will enjoy region and spend around the towns” • “More linkage of tourism spots in South Taranaki” • “Need to celebrate our local Māori heritage more”

Thank you! www.taranaki.info for more