Publications

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TARANAKI FACTS AND FIGURES

WIN T ER 2015


Taranaki Trends

WELCOME TO TARANAKI TRENDS FOR WINTER 2015 Statistics are, by their very definition, backward looking. But while they capture how our region has performed - rather than what’s ahead they do offer insights that can be incredibly valuable when planning for growth. This edition of Taranaki Trends tells a story of a region built on strong foundations. Our building consents are up, our population is growing, our economy has performed strongly and we have more people employed in more businesses. We can be justifiably proud of our region. But looking forward Taranaki is facing some economic challenges. Our two cornerstone industries – dairying and oil and gas – are being impacted by fluctuations in global commodity prices that sit beyond our region’s control. What we are able to control is our response, and this publication should become one of the assets in your business toolbox. As the winter’s weather rolls in, and the impacts of global commodity price movements reach our region, we encourage you to utilise the contents of this toolbox to maintain momentum and planning for the spring. If statistics and our past performances teach us anything, it is what goes down will ultimately rebound. And as Taranaki’s regional development agency, if the team here at Venture Taranaki can offer any further assistance to help your organisation grow, then please don’t hesitate to contact us.

Stuart Trundle Chief Executive Venture Taranaki

Winter Edition 2015: This edition of Taranaki Trends is published in May 2015 and remains current until November 2015 TA R A N A K I T R E N D S W I N T E R 2 0 1 5


Economic Summary

TARANAKI GDP up 7.2% on the previous year, now at $9.2B.

EMPLOYEE NUMBERS annual change for 2014 relative to 2013.

NUMBER OF BUSINESSES IN TARANAKI

DEATHS FOR THE YEAR ENDING DECEMBER 2014

RETAIL SALES FOR THE SIX MONTHS ENDING DECEMBER 2014

EMPLOYMENT PARTICIPATION RATE

relative to 2013.

relative to the same period in 2013.

annual rate to December 2014 relative to 2013.

NATURAL INCREASE IN POPULATION (BIRTHS LESS DEATHS)

ONLINE PURCHASES BY TARANAKI RESIDENTS

DEPARTURES OF TARANAKI PEOPLE

December 2014 quarter relative to the same period in 2013.

to overseas locations on a permanent long-term basis.

GUEST NIGHTS IN TARANAKIFROM VISITORS STAYING WITH FRIENDS AND FAMILY IN 2014

UNEMPLOYMENT RATE

for year ending December 2014 compared to previous 12 months.

our annual change 2014 relative to 2013.

EMPLOYMENT BY MÄ€ORI TRUSTS AND AUTHORITIES WITHIN TARANAKI

ARRIVALS DUE TO LONG -TERM PERMANENT INTERNATIONAL PEOPLE

BIRTHS IN THE REGION FOR THE YEAR ENDING DECEMBER 2014 relative to the previous 12 month period.

EMPLOYEE NUMBERS annual change for 2014 relative to 2013.

relative to the previous 12 month period.

year ending December 2014 relative to previous 12 months.

Annual change for 2014 relative to 2013

AVERAGE HOUSE VALUATION FOR DECEMBER 2014 relative to December 2014, in the New Plymouth and South Taranaki Districts.

annual rate to December 2014 relative to 2013.

ECONOMIC OUTLOOK FOR NEW ZEALAND BY TARANAKI BUSINESSES

NUMBER OF GUEST NIGHTS BY VISITORS STAYING IN COMMERCIAL ACOMMODATION outlets within Taranaki for year ending December 2014 relative to 2013.

for the next 12 months.

VALUE OF CONSTRUCTION CONSENTS FOR YEAR ENDING DECEMBER 2014

HOME AFFORDABILITY WITHIN TARANAKI Relative to same period 12 months.

relative to the previous 12 month period.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 1


The Economy REGIONAL GROSS DOMESTIC PRODUCT (REGIONAL GDP)

CONSUMER PRICE INDEX (CPI) – NEW ZEALAND

-0.2%

REGIONAL GROSS DOMESTIC PRODUCT (GDP) IS A GEOGRAPHIC BREAKDOWN OF NATIONAL-LEVEL GDP, WHICH IS NEW ZEALAND’S OFFICIAL MEASURE OF ECONOMIC ACTIVITY. IT IS THE SAME CONCEPTUALLY AS NATIONAL GDP, WITH THE GDP OF EACH REGION SUMMING TO THE NATIONAL GDP TOTAL*.

0.8%

DEC 2014 QUARTER

ANNUAL CHANGE

CPI ANNUAL CHANGE 6.0

TARANAKI GDP:

NEW ZEALAND

YEAR ENDED MARCH 2014

OF NEW ZEALAND’S GDP

$9.2B

5.0 4.0

4.0%

3.0 2.0 1.0

Dec 14

Jun 14

Dec 13

Jun 13

Dec 12

Jun 12

Dec 11

Jun 11

Dec 10

Jun 10

Dec 09

Jun 09

Dec 08

Jun 08

Dec 07

Jun 07

Dec 06

Jun 06

Dec 05

Jun 05

0.0

MAIN SOURCE OF CPI INCREASE WERE HIGHER PRICES FOR CIGARETTES AND TOBACCO, INFLUENCED BY A TOBACCO TAX EXCISE DUTY RISE IN JANUARY 2014. PRICES FOR NEWLY BUILT HOUSES, RENTAL AND ELECTRICITY WERE ALSO UP. THE CHEAPER PETROL PRICE WAS THE MAIN DOWNWARD CONTRIBUTOR. PAGE 2

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

*

Regional GDP analysis has not yet been standardised and may vary by methodology and by the economic firms that produce such data. The following analysis has been undertaken by Statistics NZ.


5.4 5.1

Hawke’s Bay

5.6

Wellington

5.9

$1.721 $1.626

West Coast Gisborne

$60,000

$50 $50,000

10.0 10.1

7.2

4.4

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

$34,602

$39,442

Manawatu -Wanganui

Gisborne

$40,091 Hawke’s Bay

$34,825

$42,213 Bay of Plenty

Northland

$42,695

Tasman / Nelson

$46,684

$48,098 Waikato Otago

$51,051 Marlborough

$57,135

$52,306

$0 West Coast

$10,000

$53,054

$20,000

Canterbury

$30,000

$53,759

$40,000

Auckland

Southland

$60 $62,021

$70,000

Wellington

$80,000

$70

$30.204

$81.186

$80,297

$90,000

Taranaki

$2.282

$4.180

$5.502

$5.760

$6.354

$9.147

$9.170

$9.813

$80

$30.335

$20.576 $11.862

Marlborough

Tasman / Nelson

Southland

Northland

Hawke’s Bay

Manawatu -Wanganui

Taranaki

Otago

$0

Waikato

6.3

Manawatu -Wanganui

6.0

Bay of Plenty

6.4

West Coast

7.7

Otago

7.8

Taranaki

7.8

Auckland

8.0 Bay of Plenty

$10

Tasman / Nelson

10.3 Waikato

$20

Northland

10.6 Canterbury

$30

Canterbury

11.0

Southland

12.0 Wellington

$40

Marlborough

Auckland

$90

Gisborne

REGIONAL GDP 2014 $BILLION GDP PER CAPITA 2014

% CHANGE IN REGIONAL GDP 2013 - 2014

• OUR GDP INCREASED BY 7.2% RELATIVE TO 2013

• TARANAKI HAS THE HIGHEST GDP PER CAPITA ($80,297), FOLLOWED BY WELLINGTON ($62,021) AND SOUTHLAND ($57,135). THE NATIONAL AVERAGE BEING $51,319.

4.0

2.0

0.0

PAGE 3


Labour Market TARANAKI

NEW ZEALAND

TOTAL EMPLOYEE COUNT

TOTAL EMPLOYEE COUNT

50,690*

GROWTH IN EMPLOYEE NUMBERS 2013-2014

2.5%

TARANAKI

NEW ZEALAND

2.9%

2.7%

2014 EMPLOYMENT % BY TARANAKI DISTRICT

12,380 24% South Taranaki District

TARANAKI EMPLOYMENT BY INDUSTRY 10,000 9,000 8,000

2,910 6%

7,000 6,000

Stratford District

5,000

35,400 70% New Plymouth District

4,000 3,000 2,000 1,000

New Plymouth District

Stratford

South Taranaki

Manufacturing

Agriculture

Manufacturing

Retail

Retail

Agriculture

Health care and social services

Education, health and social services

Retail

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

Other Services

Arts & Recreation

Health Care & Social Assistance

Education & Training

Public Administration & Safety

Administrative & Support Services

Professional, Scientific & Technical Services

Rental, Hiring & Real Estate Services

Financial & Insurance Services

Information Media & Telecommunications

Transport, Postal & Warehousing

Accommodation & Food

Retail Trade

Wholesale Trade

Construction

Electricity, Gas, Water & Waste

* The regional employee count equates to the summation of employees within the three Taranaki District areas. This boundary differs slightly from the Taranaki regional boundary.

Construction

PAGE 4

Manufacturing

INDUSTRIES WHICH HAVE THE MOST EMPLOYEES

Mining

Agriculture Forestry & Fishing

0


DECEMBER QUARTER 2014 UNEMPLOYMENT RATE - REGIONAL COMPARISONS

UNEMPLOYMENT RATE - TARANAKI v NZ 8.0

10 9

7.0

8 6.0

7

5.0

6 5

4.0

4

3.0

3 2

2.0

1 1.0

Southland

Otago

Canterbury

West Coast

Marlborough

Tasman / Nelson

Wellington

Manawatu -Wanganui

Taranaki

Hawke’s Bay

Gisborne

Bay of Plenty

Waikato

Auckland

Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14

Dec 08 Mar 09 Jun 09 Sep 09

Sep 07 Dec 07 Mar 08 Jun 08 Sep 08

Dec 06

Mar 07 Jun 07

Taranaki

Northland

0

0.0

New Zealand

TARANAKI HAS LOWER UNEMPLOYMENT AND A HIGHER PARTICIPATION RATE THAN THE NATIONAL AVERAGE. ANNUAL UNEMPLOYMENT RATE

LABOUR FORCE PARTICIPATION RATE

TARANAKI

NEW ZEALAND

ANNUAL RATE TO DECEMBER 2014

ANNUAL RATE TO DECEMBER 2014

5.3%

5.8%

TARANAKI

69.3%

ANNUAL RATE TO DECEMBER 2014

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

NEW ZEALAND

68.9%

ANNUAL RATE TO DECEMBER 2014

PAGE 5


Business Numbers TARANAKI

TARANAKI BUSINESSES - NUMBER OF BUSINESSES BY INDUSTRY TYPE 2014

TARANAKI BUSINESSES

14,927

2.9%

NUMBER OF BUSINESSES

Agriculture , Forestry & Fishing Rental, Hiring & Real Estate Services Construction Financial & Insurance Services Professional, Scientific & Technical Services Retail Trade Other Services Manufacturing Health Care & Social Assistance

OF NEW ZEALAND TOTAL

BUSINESS NUMBERS BY DISTRICT

Accommodation & Food Services Wholesale Trade

South Taranaki

61

%

29% 4,194

New Plymouth District

Transport, Postal & Warehousing Education & Training Administrative & Support Services Arts & Recreation Services Mining Public Administration & Safety Information Media & Telecommunications Electricity, Gas, Water & Waste Services

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

8,906 Stratford

10% 1,488

INDUSTRIES THAT MAKE THE BIGGEST CONTRIBUTION TO BUSINESS NUMBERS New Plymouth District

Stratford

South Taranaki

Agriculture

Agriculture

Agriculture

Business services e.g. financial, rental ,real estate

Business services e.g. financial, rental, real estate

Business services e.g. financial, rental, real estate

Retail & wholesale

Construction

Construction

Construction

Retail

Retail

THE MAJORITY OF TARANAKI BUSINESSES ARE INVOLVED IN PRIMARY PRODUCTION, WHICH INCLUDES FARMING AND SERVICES TO AGRICULTURE.

Professional services, scientific, technical

PAGE 6

TA R A N A K I T R E N D S W I N T E R 2 0 1 5


TARANAKI’S INDUSTRY STRENGTHS INCLUDE AGRICULTURE, ENERGY AND ENGINEERING, AND THIS IS REFLECTED IN OUR COMPARATIVELY HIGHER EMPLOYMENT COMPOSITION WITHIN THESE SECTORS RELATIVE TO THE NATIONAL AVERAGE.

BUSINESS - PERCENTAGE CHANGE IN 2013 - 2014 2.5

2.3

2.3

2.0

1.7

1.5 1.1 1.0 0.5

0.2

0.0 NZ

New Plymouth

Stratford

Taranaki

South Taranaki

COMPARATIVE EMPLOYMENT COMPOSITION - NZ v TARANAKI 2014 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0

Taranaki

Other Services

Arts & Recreation

Health Care & Social Assistance

Education & Training

Public Administration & Safety

Administrative & Support Services

Professional, Scientific & Technical Services

Rental, Hiring & Real Estate Services

Financial & Insurance Services

Information Media & Telecommunications

Transport, Postal & Warehousing

Accommodation & Food

Retail Trade

Wholesale Trade

Construction

Electricity, Gas, Water & Waste

Manufacturing

Mining

Agriculture Forestry & Fishing

0.0

New Zealand

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 7


Ma-ori Authorities and Trusts IN 2014, THERE WERE 970 MĀORI ENTERPRISES IN NEW ZEALAND, WHICH EXTENDS TO 1,194 WHEN INCLUDING THEIR ‘GEOGRAPHIC UNITS’ (E.G. BRANCH OFFICES). 8,500 EMPLOYEES WORK FOR THESE ORGANISATIONS.

NUMBER OF MĀORI AUTHORITIES / TRUSTS (GEOGRAPHIC UNITS) 350

327

300 246

250 200

111 78

100

75

72 57

50

45

45

Area outside regions

Wellington

Taranaki

Auckland

Hawke’s Bay

Gisborne

Northland

• Agriculture, forestry and fishing (27%)

Manawatu -Wanganui

3 0 South Island

• Rental, hiring and real estate services (41%) – predominantly rental or leasing agricultural land or other commercial property

129

Waikato

Three-quarters of all Māori enterprises were in three industries:

150

Bay of Plenty

A Māori enterprise is defined by Statistics NZ as a Māori authority or a Trust or a subsidiary of a Māori authority or Trust.*

• Financial and insurance services (10%) EMPLOYMENT WITHIN MĀORI AUTHORITIES / TRUSTS

Of the 1,194 Māori authorities/trusts, there were 45 recorded in Taranaki and they employed 130 people.

2,000 1,800

1,780

1,680

1,600 1,400

PAGE 8

580

600

480

470

400

220

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

Hawke’s Bay

Northland

Wellington

South Island

0

Gisborne

200 Waikato

• It is a business that is 50 percent or more owned by Māori authorities.

730

800

Auckland

• It is a commercial business that supports the Māori authority’s business and social activities, and sustains or builds a Māori authority’s asset base.

1,140

130

35 Area outside regions

• It is an enterprise (business) with a collectively managed asset that uses current Inland Revenue eligibility criteria to be a Māori authority (whether or not it elects to be a Māori authority for tax purposes)

1,000

1,250

Taranaki

1,200

Manawatu -Wanganui

conditions:

Bay of Plenty

* Māori Enterprise: An enterprise is treated as Māori enterprise if it meets one (or more) of these


Taranaki Economic Outlook NZ BUSINESS CONDITIONS - NEXT 12 MONTHS

1,000 TARANAKI BUSINESSES WERE SURVEYED IN NOVEMBER 2014 REGARDING THE STATE OF THE NEW ZEALAND ECONOMY AND TRADING CONDITIONS FOR THE NEXT 12 MONTHS.

70% 60% 50% 40% 30% 20%

• 31.3% ANTICIPATED IMPROVEMENT • 54.9% ANTICIPATED THE STATUS QUO WILL PREVAIL • 11% PREDICTED DETERIORATION • 3% WERE UNSURE

10%

Improve

Remain the same

Jun 14

Dec 14

Dec 13

Jun 13

Jun 12

Dec 12

Jun 11

Dec 11

Dec 10

Dec 09

May 10

Nov 08

Deteriorate

May 09

Nov 07

May 08

Nov 06

May 07

Nov 05

May 06

Nov 04

May 05

Nov 03

May 04

Nov 02

May 03

Nov 01

May 02

May 01

Nov 00

Don’t know

EMPLOYMENT - NEXT 6 MONTHS 90%

A TIGHTER TRADING AND EMPLOYMENT PERIOD IS ANTICIPATED FOR 2015.

80% 70% 60% 50% 40% 30% 20% 10%

Improve

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

Deteriorate

Jun 14

Dec 14

Jun 13

Dec 13

Jun 12

Dec 12

Jun 11

Dec 11

Dec 10

Dec 09

May 10

Nov 08

May 09

Nov 07

May 08

Nov 06

Remain the same

May 07

Nov 05

May 06

Nov 04

May 05

Nov 03

May 04

Nov 02

May 03

Nov 01

May 02

Nov 00

May 01

Nov 99

0% May 00

Nov 99

May 00

0%

Don’t know

PAGE 9


Population

TARANAKI’S REGIONAL POPULATION IS ALMOST 110,000 PEOPLE.

UNDER 5 YEARS - LOCATION OF HIGHEST NUMBERS WITHIN TARANAKI 600 504

312

306

300

NUMBER OF TARANAKI RESIDENTS UNDER 5 YEARS = 7,917. THIS IS 7.2% OF TOTAL TARANAKI POPULATION.

291

264

264

261

255

252

243

207

201

Marfell

330

Waitara East

400

Kahui

500

200 100

26

%

2,097

South Taranaki District

Stratford District

65% 5,139

PAGE 10

Westown

Inglewood

Fitzroy

Stratford West

Frankleigh

Waitara West

Hawera North

OVER 500 UNDER 5-YEAR-OLDS RESIDE IN THE BELL BLOCK AREA. Biggest growth areas in the region for under 5 year olds (2013 census relative to previous census, 2006):

9% 681

Hawera South

TARANAKI POPULATION UNDER 5 YEARS - NUMBERS AND LOCATION

Struan Park

Bell Block

0

New Plymouth District

• Bell Block +216 • Fitzroy +69 • Highlands Park +60 • Inglewood +66 • Merrilands +54 • Lepperton +45 • Hawera North (+54) & South (+60)

TA R A N A K I T R E N D S W I N T E R 2 0 1 5


NATURAL POPULATION INCREASE

TARANAKI

NATURAL INCREASE IN POPULATION: TARANAKI DISTRICTS 2002 - 2014 YEAR END DECEMBER 500

0.1%

NEW ZEALAND

-2.5%

ANNUAL CHANGE IN BIRTHS 2013-2014

ANNUAL CHANGE IN BIRTHS 2013-2014

TARANAKI

NEW ZEALAND

ANNUAL CHANGE IN DEATHS 2013-2014

ANNUAL CHANGE IN DEATHS 2013-2014

400 300 200

8.2%

100 0 2002

2003

2004

2005

2006

2007

2008

2009

2010

South Taranaki

New Plymouth District

2011

2012

2013

2014

Stratford

NATURAL POPULATION INCREASE 2005 - 2014 40,000

900

35,000

800 700 600

25,000 500 20,000

400

15,000

300

10,000

200

5,000

100

0

0 2005

2006

2007

2008 New Zealand

2009

2010

2011

Taranaki

2012

2013

2014

Taranaki

New Zealand

30,000

5.1%

THERE WERE 1,506 BIRTHS IN TARANAKI DURING 2014 AND 961 DEATHS, RESULTING IN A NATURAL POPULATION INCREASE OF 545. The natural population increase that occurred in Taranaki during 2014 was at a lower rate than the previous year, due to more deaths occurring in the New Plymouth and South Taranaki Districts and fewer births in New Plymouth District. New Zealand’s population continues to grow through natural increase however its rate of growth has also declined (down 10.2% in 2014).

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 11


Migration - Long-term International Arrivals and Departures NET MIGRATION - TARANAKI DISTRICTS ANNUAL TO DECEMBER 2014

INTERNATIONAL MIGRATION - ARRIVALS ANNUAL TO DECEMBER 2014 1,400

600

1,200

400

1,000

200

800

0

600

-200

400

-400

200

-600 2000

2001

0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

South Taranaki

New Plymouth District

2010

2011

2012

2013

1,000 800 600 400 200 0 2003

2004

2005

2006

New Plymouth District

PAGE 12

2007

2008

South Taranaki

2005

2006

2007

2008

South Taranaki

2009

2010

2011

2012

2013

2014

Stratford

There was a net gain of 492 people for Taranaki in 2014, due to international arrivals to the region exceeding international departures, predominantly driven by the New Plymouth District. This is a significant improvement on two years when there was a net loss of 341 people, and the year prior (2011) when there was a net loss of 451 people.

1,200

2002

2004

Stratford

1,400

2001

2003

New Plymouth District

2014

INTERNATIONAL MIGRATION - DEPARTURES ANNUAL TO DECEMBER 2014

2000

2002

2009

2010

2011

2012

2013

2014

Stratford TA R A N A K I T R E N D S W I N T E R 2 0 1 5


NET MIGRATION - TARANAKI YEAR ENDING DEC (2000 - 2014)

2014 TARANAKI NET MIGRATION - BY AGE YEAR ENDING DECEMBER

800

100

600

492

400

238

60

253

200

-137

0 -73

-200

-62

-5

20 -93

-89

-165

0 -341

-20

-451

-600 -800

40

56

-273

-400

-40

-670 2000

80

-60 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TARANAKI EXPERIENCED A NET GAIN IN MIGRATION IN ALL AGE BRACKETS WITH THE EXCEPTION OF THE 20-24 YEAR GROUPING.

0-4

10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74

75+

THE NET MIGRATION LOSS OF 20-24 YEAR OLDS FROM THE TARANAKI REGION HAS DECLINED IN RECENT YEARS, TO THE EXTENT THAT IN 2014 IT WAS THE LOWEST SINCE 2003. TARANAKI NET MIGRATION 20 - 24 YEAR OLDS 2002 - 2014

0

2002

-50 -100

PEOPLE MAY LEAVE THE REGION TO GAIN INTERNATIONAL WORK, STUDY, TRAVEL AND EXTEND LIFE SKILLS.

5-9

2003

2004

2005

2006

2007

2008

2009

-41

-82

2010

2011

2012

2013

-43

-54

-115

-92

2014

-74 -112

-108

-123

-150 -200

-192

-202

-185

-250

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 13


Work-Live Patterns in Taranaki % WORKING OUTSIDE RESIDENT SETTLEMENT BUT WITHIN TARANAKI

WITHIN TARANAKI THIS TREND IS MONITORED BY VENTURE TARANAKI IN ITS WORK-LIVE ANALYSIS WHICH FOCUSES ON THE FOLLOWING SETTLEMENTS: BELL BLOCK; COASTAL; ELTHAM; HAWERA; INGLEWOOD; MANAIA; NEW PLYMOUTH; OPUNAKE; PATEA; STRATFORD; WAITARA; WAVERLEY. DOWNLOAD THE FULL REPORT FROM WWW.TARANAKI.INFO

69

69

70

Coastal

Waitara

64

Inglewood

70 60

60

54 48

30

39

41

42

Hawera

34

Opunake

40

Eltham

50

25

20 10 Manaia

Patea

Bell Block

Stratford

Waverly

0 New Plymouth

HISTORICALLY PEOPLE TENDED TO LIVE AND WORK IN THE SAME TOWN BUT INCREASINGLY PEOPLE MAY LIVE IN ONE LOCATION & TRAVEL TO WORK IN ANOTHER.

80

INGLEWOOD – A SATELLITE TOWN: • 69% of Inglewood residents who work, travel outside Inglewood for their jobs – predominantly in New Plymouth or Bell Block. • Only 29% of people who live in Inglewood work there as well.

PAGE 14

TA R A N A K I T R E N D S W I N T E R 2 0 1 5


WAITARA HAS THE HIGHEST PROPORTION OF PEOPLE WORKING OUTSIDE ITS TOWNSHIP (70%). WAITARA OFFERS HOUSING AND LIFESTYLE AMENITIES, WHILST BEING IN CLOSE PROXIMITY TO EMPLOYMENT OPPORTUNITIES. OF THE 70% OF PEOPLE WHO WORK OUTSIDE WAITARA, 39% WORK IN BELL BLOCK AND 35% WORK IN NEW PLYMOUTH.

Waitara 2006

60% OF ELTHAM RESIDENTS WORK THERE AS WELL. THEIR AVERAGE INCOME IS $42,600. 39% OF PEOPLE WHO LIVE IN ELTHAM, WORK OUTSIDE ELTHAM; OF THESE 20% WORK IN STRATFORD.

Waitara 2013

Eltham 2006

Eltham 2013

27,700 29%

32,400 30%

35,800 60%

42,600 60%

34,700 69%

41,300 70%

38,600 38%

43,300 39%

33,600 2%

34,500 1%

33,600 2%

37,100 1%

Source: Statistics New Zealand

Source: Statistics New Zealand

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 15


Housing AVERAGE VALUE OF A HOUSE DECEMBER 2014 $1,000,000

$907,819

$900,000

TARANAKI IS THE FOURTH MOST ATTRACTIVE REGION IN THE COUNTRY IN TERMS OF HOME AFFORDABILITY.

$800,000 $700,000 $600,000

$510,418

$500,000 $488,674 $357,617 $289,439 $201,493 $185,794

$242,304 $165,335

Less affordable

$100,000

0.4

0.5

0.9

-4

-0.5 -2.7

HOUSE VALUES - % CHANGE IN VALUE BETWEEN DECEMBER 2014 AND DECEMBER 2013 House valuations have continued to increase in the Taranaki region, particularly within the New Plymouth District. The average valuation of a house within the New Plymouth District is currently higher than the average house valuation in Napier and Palmerston North. The average house valuation in Stratford is higher than the South Taranaki District, which is, in turn, higher than Wanganui.

PAGE 16

HOWEVER, IN THE LAST 12 MONTHS TARANAKI’S HOME AFFORDABILITY DECLINED BY 7.1%. THIS WAS LESS THAN THE NATIONAL TREND WHERE NEW ZEALAND’S AVERAGE HOME AFFORDABILITY INDEX DECLINED 14.1%, AND IS EXPECTED TO FURTHER DETERIORATE IN 2015. AUCKLAND REMAINS THE LEAST AFFORDABLE PLACE IN THE COUNTRY WITH ITS INDEX RISING MARGINALLY TO 40% ABOVE THAT FOR THE WHOLE COUNTRY.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

Southland

Manawatu/ Wanganui

Otago

Taranaki

0.6

0 -2

Hawkes Bay

3.5 1.6

0 Auckland

4.9

5

Northland

4.9

10

Wellington

8

2

20

More affordable

10.4

4

30

15

10

6

35

25

Clutha

Selwyn District

Manawatu District

Palmerston North City

Wanganui

South Taranaki

Stratford

New Plymouth District

Napier City

Auckland City

New Zealand

$0

12

HOME AFFORDABILITY REGIONAL RANKING

Nelson/

$200,000

$182,365

Waikato/BOP

$300,000

Canterbury/ Westland

$328,251

Central Otago Lakes

$400,000


Rentals

550 500 450 400 350 300 250 200 150 100 50

NEW PLYMOUTH

NEW ZEALAND

NEW PLYMOUTH

NEW ZEALAND

MEDIAN RENT FEBRUARY 2015

MEDIAN RENT FEBRUARY 2015

PERCENTAGE CHANGE FEBRUARY 2014 - 2015

PERCENTAGE CHANGE FEBRUARY 2014 - 2015

$310

$365

1.6%

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

Dunedin

Invercargill

Christchurch

Nelson

Wellington

Upper Hutt

Lower Hutt

Kapiti

Porirua

Palmerston North

Wanganui

New Plymouth

Napier

Hastings

Gisborne

Rotorua

Tauranga

Hamilton

Papakura

Manukau

Auckland

Waitakere

Whangarei

0 North Shore

THE RENTAL MARKET IN NEW PLYMOUTH INDICATES RENTALS HAVE INCREASED SLIGHTLY (UP 1.6%) WITH THE AVERAGE WEEKLY RENT AT $310 PER WEEK. THIS COMPARES WITH A CURRENT AVERAGE RENTAL OF $365 PER WEEK ON A NATIONAL BASIS.

RENTS PER WEEK ($) - FEBRUARY 2015

4.3%

PAGE 17


Construction Activity VALUE OF BUILDING CONSENTS 2000-2014 250

200

$ Millions

FOR THE YEAR ENDING DECEMBER 2014 IN TARANAKI THERE WERE $310 MILLION OF BUILDING CONSENTS APPROVED.

150

100

TOTAL $ VALUE OF BUILDING CONSENTS COMMERCIAL & RESIDENTIAL YEAR ENDING DECEMBER 2014

50

0 2000

2001

2002

2003

2005

New Plymouth District

57.5MILLION South Taranaki District

2006

2007

2008

South Taranaki

2009

2010

2011

2012

2013

Stratford

VALUE OF BUILDING CONSENTS - % CHANGE FROM PREVIOUS YEAR (ANNUAL TO DEC 2014)

21.4MILLION

45 38.6

40

Stratford District

35

231.1MILLION New Plymouth District

2004

30

30.7 27.2

25

20.7

20 15

11.9

10 5 0

PAGE 18

Taranaki

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

NZ

NPD

Stratford

South Taranaki

2014


VALUE OF RESIDENTIAL CONSENTS (NEW AND ALTERATIONS) YEAR ENDING DECEMBER 2014

TOTAL COMMERCIAL BUILDING CONSENTS YEAR ENDING 2014

160

100 90

140

80 120 70 60 $ Millions

$ Millions

100 80

50 40

60

30 40 20 20 0

10 0 2000

2001

2002

2003

2004

2005

New Plymouth District

2006

2007

2008

South Taranaki

2009

2010

2011

2012

2013

2014

2000

Stratford

2001

2002

2003

2004

2005

New Plymouth District

RESIDENTIAL CONSTRUCTION WITHIN THE NEW PLYMOUTH DISTRICT HAS REMAINED STRONG DURING 2014.

2006

2007

2008

South Taranaki

2009

2010

2011

2012

2013

2014

Stratford

COMMERCIAL CONSTRUCTION WITHIN THE THREE TARANAKI DISTRICTS HAS BEEN PARTICULARLY ACTIVE DURING 2014 THIS INCLUDES HOTEL DEVELOPMENT, HOSPITAL/NURSING HOMES, SHOPS AND DAIRY FACTORY EXPANSION.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 19


Retail Sales

FOR THE HALF-YEAR ENDING DECEMBER 2014, $581M WAS SPENT AT RETAIL MERCHANTS IN TARANAKI. SPENDING WITHIN TARANAKI JULY 2014 - DECEMBER 2014

RETAIL SPEND WITHIN TARANAKI DISTRICTS JULY-DEC 2014

$140m

17

%

$120m

South Taranaki District $99.93m

$100m $80m

8%

$60m $40m

Stratford District $46.85m

New Plymouth District Council $434.40m

75%

$20m $0 m July

Aug

Sept

Oct

Nov

Dec

SPENDING WITHIN TARANAKI WAS UP 1.4% FOR THE HALF-YEAR, RELATIVE TO THE SAME PERIOD IN 2013, ALTHOUGH THIS WAS LESS THAN THE NEW ZEALAND AVERAGE OF 5.5%.

PAGE 20

TA R A N A K I T R E N D S W I N T E R 2 0 1 5


Online Sales TARANAKI: MONTHLY PERCENTAGE CHANGE IN RETAIL SALES (JULY T0 DECEMBER 2014) COMPARED WITH THE SAME PERIOD IN 2013 6%

5.5% 3.6%

4%

3.3% 2.0%

2% 0%

-0.5%

-2%

TARANAKI RESIDENTS INCREASED THEIR ONLINE SPENDING DURING THE DECEMBER 2014 QUARTER RELATIVE TO THE PREVIOUS YEAR (5.4%). THIS OCCURED AT A MUCH HIGHER RATE THAN THEIR EXPENDITURE AT PHYSICAL STORES. HOWEVER THE REGIONAL GROWTH IN ONLINE SHOPPING IN TARANAKI IS LESS THAN THE NATIONAL AVERAGE OF 6.4%.

-4% -6%

-4.3% July

Aug

Sept

Oct

Nov

Dec

TARANAKI GROWTH IN ONLINE SALES v TOTAL RETAIL SALES 25%

STRONGEST RETAIL GROWTH WAS RECORDED IN THE STRATFORD DISTRICT WITH A 4.6% GAIN.

20% 15% 10% 5% 0% -5%

Mar 2013

PERCENTAGE CHANGE IN RETAIL SPEND JULY - DEC 2014 COMPARED WITH SAME PERIOD 2013 5%

4.6%

Jun 2013

Sep 2013

Dec 2013

Online Sales

Mar 2014

Jun 2014

Sep 2014

Dec 2014

Total Sales

KEY AREAS OF ONLINE SPENDING INCLUDE DEPARTMENT, VARIETY AND ‘OTHER’, FOLLOWED BY GROCERIES AND LIQUOR.

4% 3% 2% 1.1%

1.1% 1% 0% New Plymouth

Stratford

South Taranaki

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 21


Visitor Industry TARANAKI DISTRICT COMMERCIAL GUEST NIGHT

TARANAKI

-6.2%

PERCENTAGE CHANGE IN GUEST NIGHTS YEAR ENDING DEC 2014

70,000

NEW ZEALAND

5.8%

60,000 50,000

PERCENTAGE CHANGE IN GUEST NIGHTS YEAR ENDING DEC 2014

40,000 30,000 20,000

South Taranaki

New Plymouth District

Nov 14

Stratford

AVERAGE LENGTH OF STAY IN COMMERCIAL ACCOMMODATION 3.5 3 2.5

• Guest nights fell 6.2 percent to 553,209 2

• International guest nights fell 19.9 percent to 70,656

New Plymouth District PAGE 22

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

South Taranaki

Stratford

Dec 14

Nov 14

Oct 14

Sep 14

Aug 14

Jul 14

Jun 14

May 14

Apr 14

Mar 14

Jan 14

Feb 14

Dec 13

Nov 13

Oct 13

Sep 13

Aug 13

Jul 13

Jun 13

May 13

Apr 13

0 Mar 13

• The occupancy rate, excluding holiday parks, was 45.3 percent

0.5

Feb 13

• The overall occupancy rate fell from 34.4 percent to 32.9 percent

1

Jan 13

• The average length of stay fell from 2.20 nights to 2.04 nights

1.5

Dec 12

• Domestic guest nights fell 3.8 percent to 482,553

Dec 14

Oct 14

Sep 14

Jul 14

Aug 14

Jun 14

May 14

Apr 14

Mar 14

Jan 14

Feb 14

Nov 13

Dec 13

Oct 13

Sep 13

Jul 13

Aug 13

Jun 13

May 13

Apr 13

Mar 13

Jan 13

Feb 13

0

Dec 12

TARANAKI 2014 COMMERCIAL ACCOMMODATION RESULTS FOR THE YEAR ENDED DECEMBER COMPARED WITH 2013:

10,000


2014 PROVED A MORE CHALLENGING YEAR FOR COMMERCIAL ACCOMMODATION OUTLETS WITHIN THE REGION. COMMERCIAL GUEST NIGHT % GROWTH BY ACCOMMODATION TYPE 2013-2014

TARANAKI VISITOR ARRIVAL % CHANGE FROM PREVIOUS YEAR - YEAR ENDING DEC 16 14

15

12

10

10

5

8

0

6

-5

4

-10

2

-15

Hotels

Motels

Backpackers

Total

Holiday Parks

0 -2

Taranaki NZ

-4 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TARANAKI GUEST NIGHTS BY ACCOMMODATION TYPE YEAR ENDING 2014 Taranaki NZ

8%

Backpackers

45%

Holiday Parks

Motels Hotels

25% 22%

MOTELS COMPRISED 45% OF TARANAKI’S TOTAL COMMERCIAL GUEST NIGHTS FOR 2014. ALTHOUGH GUEST NIGHTS WERE DOWN, VISITOR ARRIVALS WERE UP ON 2013, SUGGESTING VISITORS STAYED A SHORTER PERIOD. TARANAKI’S RATE OF GROWTH WAS SLIGHTLY LESS THAN THE NEW ZEALAND AVERAGE.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 23


Visitor Industry

TARANAKI

TARANAKI’S OVERALL OCCUPANCY RATE FOR THE YEAR WAS 32.9%. WHEN HOLIDAY PARKS ARE EXCLUDED FROM THIS ANALYSIS, TARANAKI’S OCCUPANCY RATE WAS 45.3%.

TARANAKI

45.3%

32.9%

OCCUPANCY RATE HOLIDAY PARKS EXCLUDED

• THE AVERAGE LENGTH OF STAY BY GUESTS IN TARANAKI DIFFERS BY ACCOMMODATION TYPE:

OCCUPANCY RATE HOLIDAY PARKS INCLUDED

• HOTELS: 1.88 NIGHTS • MOTELS/APARTMENTS: 1.85 NIGHTS • BACKPACKERS: 2.57 NIGHTS

New Zealand

PAGE 24

New Plymouth District

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

South Taranaki

Stratford

Nov 14

Dec 14

Oct 14

Sep 14

Aug 14

Jul 14

Jun 14

Apr 14

May 14

Mar 14

Jan 14

Feb 14

Dec 13

Nov 13

Oct 13

Sep 13

Aug 13

Jul 13

Jun 13

Apr 13

Feb 13

Taranaki

Mar 13

Jan 13

Dec 12

Dec 14

Oct 14

Nov 14

Sep 14

Aug 14

Jul 14

Jun 14

May 14

Apr 14

Feb 14

0 Mar 14

0 Jan 14

10

Dec 13

10

Oct 13

20

Nov 13

20

Sep 13

30

Aug 13

30

Jul 13

40

Jun 13

40

May 13

50

Apr 13

50

Feb 13

60

Mar 13

60

Jan 13

OCCUPANCY RATE

Dec 12

OCCUPANCY RATE TARANAKI v NEW ZEALAND

May 13

• HOLIDAY PARKS: 2.53 NIGHTS


Visitors Staying with Friends and Relatives (VFR) PURPOSE OF VISIT (%) - VISITORS STAYING WITH FAMILY OR FRIENDS DECEMBER 2014

VFR GUEST NIGHTS YEAR ENDING DECEMBER

Other 2011

Sports/Hobbies/Recreation Business

2012

Conference General Holiday/Leisure

2014

2013

Visiting Family or Friends

0

200

400

650

800 Thousands

1000

2000

3000

4000

0

GUEST NIGHTS IN TARANAKI FROM VISITORS STAYING WITH FRIENDS AND FAMILY DURING 2014 200,000 180,000

10

20

30

40

50

60

70

80

90

OVER 1.1 MILLION VFR GUEST NIGHTS WERE RECORDED IN 2014. This is an increase of 10.9% over 2013, December and January are the prime months for the region’s influx of VFR guests.

160,000

VFR VISITORS - COMPOSITION 2014

140,000 120,000 100,000

30%

80,000 60,000

International

40,000 20,000 0 Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sept

Oct

Nov

Dec

70%

Domestic

Venture Taranaki commissions an independent monthly phone survey of Taranaki households, to monitor visitors to the region who stay with friends and relatives. Although they do not stay at commercial accommodation, they still make an important contribution to our regional economy through their other forms of expenditure. TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 25


Visitor Expenditure

VISITORS TO TARANAKI SPENT ALMOST $59 MILLION AT OUR RETAIL OUTLETS DURING THE 6 MONTH PERIOD ENDING DECEMBER 2014. OF THIS, OVER $45.8M WAS SPENT WITHIN THE NEW PLYMOUTH DISTRICT, $4.3M IN STRATFORD AND $8.8M WAS SPENT WITHIN THE SOUTH TARANAKI DISTRICT.

50 45 40 35 30 Millions

$51M WAS DOMESTIC VISITOR EXPENDITURE, WITH THE BALANCE FROM INTERNATIONAL VISITORS.

VISITOR EXPENDITURE IN TARANAKI - 6 MONTHS ENDING DEC 2014 $M

25 20 15 10 5 0 New Plymouth District

Stratford International expenditure

PAGE 26

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

South Taranaki Domestic expenditure


Airport Movements

OVER 340,000 PASSENGERS UTILISED THE NEW PLYMOUTH AIRPORT DURING 2014 – THE HIGHEST EVER RECORDED.

NEW PLYMOUTH AIRPORT PASSENGERS - GROWTH ON PREVIOUS YEAR (%) 20 15 10 5 0 -5 -10 -15

NEW PLYMOUTH AIRPORT - TOTAL PASSENGER MOVEMENTS - YEAR TO DEC

250,000 200,000 150,000 100,000 50,000

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

0

2014

2013

2012

2011

2010

2009

2008

2007

3006

2005

2004

2003

2002

2001

2000

300,000

1999

1998

350,000

PASSENGER MOVEMENTS ARE 125% HIGHER NOW THAN THEY WERE FIFTEEN YEARS AGO – REFLECTING THE PROGRESS AND INCREASING ATTRACTIVENESS OF TARANAKI, ITS LIFESTYLE AND ECONOMY.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 27


Technical Details

Consumer Price Index (CPI): Statistics NZ. The CPI measures the rate of price change of goods and services purchased by New Zealand households. Statistics NZ visits 3,000 shops around New Zealand to collect prices for the CPI and check product sizes and features.

Average household weekly income: Statistics NZ: Weekly household income is the sum of weekly income of all people in the household from all sources. Average weekly household income is total weekly household income, divided by the number of households.

Gross Domestic Product (GDP): Statistics NZ.

House values and average value of a house: Source: QV.co.nz: QV.co.nz is powered by PropertyIQ, a joint venture between CoreLogic and Quotable Value. Note: these are house valuations, not house sales.

Economic Activity: ANZ Regional Trends. Note: this information is not GDP data but a composition of specific indicators selected by the ANZ e.g. retail sales, employment data, house sales, guest nights, car sales etc. The report tracks the overall summation of changes on a regional basis annually and quarterly. Economic Outlook: Venture Taranaki. This reflects the results of VT’s Six-monthly business survey of Taranaki businesses. The survey involved a cross-section of 1000 businesses. The survey is undertaken in June and November of each year. Employee Count: Statistics NZ Business demography. Business demographic statistics give an annual snapshot (as at February); limited to economically significant individual, private-sector and public-sector enterprises that are engaged in the production of goods and services in New Zealand; generally includes all employing units and those enterprises with GST turnover greater than $30,000 per year. Employee count is a head-count of all salary and wage earners for the February reference month. NB: this may not include self-employed or those within the business that are not classified as employees. Unemployment rate and Participation Rate: Statistics NZ Household Labour Force survey. Employment Outlook: Taranaki: Venture Taranaki. Six-monthly business survey of Taranaki businesses, undertaken June 2013. Skill shortage monitor: Venture Taranaki. Six-monthly business survey of Taranaki businesses, undertaken May and November each year.

House Sales: Real Estate Institute of NZ. Note: These are house sales, and the data only includes those sales undertaken by members of the REINZ. Does not include e.g. private sales. Home Affordability: Massey University Home Affordability Report. Rental Market: Massey University Rental market report. Building consents: Statistics NZ Agriculture: Statistics NZ. Annual Agriculture Production Survey. Farm Capital Improvements/Farm building consents: Statistics NZ Farm Sales: Real Estate Institute of NZ. Note: Only includes sales undertaken by members of the REINZ. Does not include private or other means of selling farms. Retail Statistics: Market View customized research for Venture Taranaki utilizing EFTPOS sales and BNZ credit cards. Commercial accommodation statistics: Statistics NZ Visitors staying with friends/relatives: Venture Taranaki commissioned survey data, undertaken by APR consultants.

Business numbers: Statistics NZ Business demography, undertaken February each year.

Exports/Imports: Statistics NZ data. Note: this data may not include coastal trade and the methodology utilized by Statistics NZ may not reflect the totality of trade activity which occurs across each NZ Port as part of the overall port transportation process.

Population count: Statistics NZ. Census Natural Population Increase: Statistics NZ: Births and Deaths Migration: Statistics NZ. Permanent Long-term departures and Arrivals. Permanent and long-term arrivals include overseas migrants who arrive in New Zealand intending to stay for a period of 12 months or more (or permanently), plus New Zealand residents returning after an absence of 12 months or more. Permanent and long-term departures include New Zealand residents departing for an intended period of 12 months or more (or permanently), plus overseas visitors departing New Zealand after a stay of 12 months or more.

Total Port Taranaki data and activity: Provided by Port Taranaki. This data includes coastal trade and the summation of all exports and imports crossing the port. New Plymouth Airport passenger movements: Provided by New Plymouth District Council.

Average weekly earnings: Statistics NZ: Total usual weekly earnings from self-employment and wage and salary jobs (earnings from paid employment), divided by the number of people receiving earnings from a self-employment or wage and salary job (number of people in paid employment).

PAGE 28

TA R A N A K I T R E N D S W I N T E R 2 0 1 5


About Venture Taranaki

As Taranaki’s Regional Development Agency, we’re committed to helping Taranaki grow. That’s why we’re interested in helping to make your business a success. If you need advice and assistance or access to information and knowledge to support your business aspiration, we offer a single point of contact to provide the help you require. If you are: • Thinking of starting up a business • Considering relocating or investing in Taranaki • Trying to grow your business, or if your business is going through changes We have a range of products and services to meet your business needs, and best of all, most of them are free! Information is available on-line at www.business.taranaki.info or call us:

Venture Taranaki 9 Robe Street PO Box 670 New Plymouth Telephone (06) 759 5150 Email: info@taranaki.info Facebook: TaranakiNZ Twitter: @Taranaki_NZ Disclaimer: Venture Taranaki’s services and opinions are of a general nature and should be used as a guide only. They are not a substitute for commercial judgment or independent professional advice which should be obtained prior to any business matter. While every effort has been made to ensure that the information, opinions and forecasts provided are accurate and reliable, Venture Taranaki shall not be liable for any adverse consequences of decisions made in reliance of any report provided in this publication.

TA R A N A K I T R E N D S W I N T E R 2 0 1 5

PAGE 29


Taranaki’s Regional Development Agency 9 Robe Street | PO Box 670 | New Plymouth P. (06) 759 5150 | F. (06) 759 5154 E. info@taranaki.info

TGM CREATIVE 02968

www.taranaki.info


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