Taranaki Business Survey
RESULTS OF THE DECEMBER 2015 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: innovation • • • • •
Define innovation Rank how innovative Taranaki is Regional examples Importance for business and economic growth How to encourage more innovation
NZ economic conditions: next 12 months Improve
Remain the same
Deterioriate
Unsure
70%
60%
A positive glimmer?
50%
40%
30%
20%
10%
0%
• Improve 28% (up from 24%) • Remain same 54% (up from 51%) • Deteriorate 16% (down from 24%) • Don’t know: 2%
Industry conditions: next 12 months Improve 70%
60%
50%
40%
30%
20%
10%
0%
Remain the same
Deterioriate
Unsure
Small rebound in industry confidence as well. • Improve 29% (up from 26%) • Same: 57% (up from 49%) • Deteriorate – 13% (down from 22%) • Don’t know: 1%
Sales: next 6 months Improve 70%
60%
Remain the same
Deterioriate
Unsure
And sales as well….
50%
40%
30%
20%
10%
0%
• Improve: 46% (up from 36%) • Remain same: 40% (down from 44%) • Deteriorate: 11% (down from 15%) • Don’t know: 2%
Taranaki business: concerns High concern
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5
Low concern
0.0
What’s changed? 4.0
Dec-15 3.5 3.0 2.5 2.0 1.5 1.0
0.5 0.0
1=no concern 2=slight concern 3=moderate concern 4=high concern
June -15
Less concern than June: - Declining market - Fuel price - Interest rates
Other factors impacting on business • Uncertainty of work contracts • Low dairy payout • How to keep good staff ie they could be lost to Christchurch or Auckland • People doing ‘it’ themselves as opposed to using a professional • Impacts of bureaucracy/regulation – cost and invasiveness. Central Government and Local Government. • Exchange rates, political instability
Employee numbers – next 6 months Improve
90%
Remain the same
Deterioriate
Unsure
Outlook status quo but tight
80% 70% 60%
74% anticipate employment levels to remain the same.
50% 40% 30%
14% expect staff numbers to increase
20% 10% 0%
10% - decrease.
Skill shortages or difficulty hiring? Yes
No
100.00%
Skill shortages decline slightly.
90.00% 80.00% 70.00%
81% - no skill shortages
60.00% 50.00% 40.00%
19% of Taranaki businesses report skill shortages or difficulties recruiting appropriate staff.
30.00% 20.00% 10.00% 0.00% Nov-07 May-08 Nov-08 May-09 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15
Skills shortages mentioned • Niche skills – PhP programmers (web developers) – Architectural technicians – Electronics engineers and ultrasound experts – Data science, data design • Doctors and nurses on shortage list • Upholsterers • P-endorsed Truck drivers
Good people with the right attitude “Younger people (under 25) do not put in an effort at work e.g. turn up late, stand around, work slow when boss isn’t around”
Special Topic: Innovation
Defining Innovation “Using creativity, doing things outside the box. Achieving outcomes using non-traditional modes, aiming to improve on the present, visionary, turn dreams into reality” “New ways to do old things, new ways to do new things, creative thinking, open-minded-ness, not accepting normal thinking - free thinking, challenging myself and my thinking”. “Disrupter. Thinks outside the box, creative. Can implement” “Taking chances, being proactive, being cutting edge, making mistakes and growing from these”
Defining Innovation “Leadership, energy and balls to make a change in a particular category (e.g. science) to improve a particular element”.
“At the forefront, leaders, willing to give a go, continual improvement” “Inspiring, risk taking, challenging the status quo, searching for solutions to problems” “New approach to an old problem. But being able to monetise it is the key!”
“Exploring all possibilities, even the unlikely ones”
Innovation Themes • • • • • • •
Thinking outside the square/box Doing things better: improvement, competitive Forward focused Evolution: disruptive technologies Not just ideas but actions to implement Not just process but attitude, energy and leadership Not perfection but includes challenging yourself, others, taking risks and making mistakes
How Innovative is New Zealand? 45
40
35
30
25
20
15
10
5
0
1 (not innovative all all)
2
3
4
5 (Global leader in innovation)
How Innovative is Taranaki? 50
45
40
35
30
25
20
15
10
5
0
1 (not innovative all all)
2
3
4
5 (Global leader in innovation)
Innovation: Rank Your Business 35
30
25
20
15
10
5
0
1 (not innovative all all)
2
3
4
5 (Global leader in innovation)
Innovation - Ranking Comparison NZ
Taranaki
Your business
50
45
40
35
30
25
20
15
10
5
0
1 (not innovative all all)
2
3
4
5 (Global leader in innovation)
Taranaki examples of innovation... • People e.g. Barry Carruthers • Businesses: Fitzroy Yachts, Global Stainless, Carac Couplings, Tenderlink, Hotter Engineering, Van Dycks, Kindling Cracker, Ozone Coffee Roasters, QP Sport, IVHQ, TSB Bank, Venture Taranaki • Sectors: Engineering: e.g. Yolla module, state of art dairy facilities • Facilities: Te Rewa Rewa Bridge, New Plymouth Coastal Walkway, new BMX and cycle parks, Len Lye centre (esp the façade) • Events – WOMAD
Importance of Innovation in terms of
Generating business and Creating economic growth Generating business
Creating economic growth
50 45 40 35 30 25 20
15 10 5 0
1 (not important at all)
2
3
4
5 (critical)
Biggest barriers to fostering innovation… • Time and money to get the idea underway • Habit, prejudice, insecurity, lack of knowledge • Being conservative, not being able to think outside the square • Risk aversion • Doing things the same way they have always been done • Getting trapped in the ground hog day of business repetitiveness
• Society e.g. education system emphasis on memory and individual effort vs. open-ended collaboration problem solving • Taking a gamble through investment – idea has to be fully formed for customers (and shareholders) to understand its potential • Lack of strategy • Knowing where to get support
How can we make Taranaki more innovative? • A full blown crash in dairy, because then people would have no choice but to think differently. • Celebrate innovation more – Positive innovation stories in media – Public praise of innovation to normalise its expectation • Encouraging innovation/support • – Start Up weekends, Angel Investors – Competitions e.g. in schools, • sectors
– Seminars: how to work with disruption in your industry, what/how successful or unsuccessful did – Support hub: ideas groups, R&D pathway assistance, money/R&D, incentives – Callaghan innovation support is good Youth - Involve young leaders practically, more University graduates living/working in Taranaki Collaborative leadership
How to make your business more innovative? • Getting out and about – • discovering new ideas/ideas pin up board • • Make time - Time restriction – need more time to think big • Empowerment – “Business decisions made in our area of our business are made by the leadership team in Auckland” • Commitment to invest time and • money into a well-researched initiative
Improve marketing, market exposure in different sectors Address barriers: – The council could be more supportive – We have innovation. But getting across the funding aspect is challenging. – “Sack the boss” Become more entrepreneurial – Embrace change – Get a mentor, access support
In summary
In a nutshell… • 2016 outlook: Trading conditions remain tight, but is there a positive glimmer? • Concerns: market conditions, contractual uncertainties, staff retention • Innovation:
– Critical to regional and business growth – Taranaki: Lateral thinking needed in challenging times – Support available, initiatives underway, and more to come
Thank you! www.taranaki.info for more