Taranaki Business Survey
RESULTS OF THE June 2019 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 circa 1500 Taranaki businesses. • Cross section of industry type, location and size. • Spans a number of standard economic questions. • Plus special topics: – Perceptions about the region/recent changes – Awareness re: initiatives e.g. 2050 Taranaki Roadmap, Just Transition Summit, NNEDC, H2 Roadmap
NZ Economic Conditions: next 12 months NZ Economic Outlook - Next 12 months Improve 70%
60%
Remain the same
Deterioriate
Don't know
June 2019 Small rebound?
50%
• Same: 53% 40%
30%
20%
• (no change)
• Improve 22% • (up from 18%)
• Deteriorate – 20% • (was 24%)
10%
0%
• Don’t know: 6%
Industry conditions: next 12 months Industry Outlook - Next 12 months Improve
Remain the same
Deteriorate
Don't know
70%
60%
Glimpse of positivity?
50%
• Remain same 49% 40%
30%
20%
10%
0%
• (down from 52%)
• Improve 35% • (up from 24%)
• Deteriorate 14% • (was 22%)
• Don’t know: 2%
Sales: next 6 months Sales Outlook - Next 6 months Improve 70%
60%
Remain the same
Deterioriate
Don't know
Workload and sales lift during next 6 months?
50%
• Improve: 56% 40%
• (was 31% last time)
• Remain same: 37% 30%
20%
10%
0%
• (54% previously)
• Deteriorate: 7% • (was 18%)
• Don’t know: 0%
Taranaki business: concerns High concern
Factors impacting on business 3
2.5
2
1.5
1
0.5
0
Low concern
What’s changed? What's changed since December 2018 Dec 2018
June 2019
3 2.5 2 1.5 1 0.5 0
Not too much
Factors
impacting on business Political: “Coalition Government and unpredictable legislation changes/decisions”
Economics: “Cost increases: due to environmental requirements or expectations”. Dairy Payout: “has a huge impact on our business”
Disruption: AIR BNB market: disrupting traditional regulated industry. Technology & social media: “Impact of keyboard warriors, social media, and general media, portraying the food producers as environmental pirates”. Online shopping: “Adding GST does not/will never stop people buying from China!”
Employment: Minimum wage increasing: “will need to increase my prices”. Staff recruitment: “lack of reliability - youth expectations”.
Employee numbers – next 6 months Employment Outlook Improve 90%
Remain the same
Deterioriate
Don't know
Possible upswing
80% 70% 60%
60% anticipate employment levels to remain the same.
50% 40%
31% - increase.
30% 20% 10% 0%
6% expect staff numbers to decrease
Skill shortages or difficulty hiring? Skill Shortages Yes
No
100.00% 90.00%
61% - no skill
80.00%
shortages 70.00%
60.00%
39%
of Taranaki businesses report skill shortages or difficulties recruiting appropriate staff.
50.00% 40.00% 30.00% 20.00%
10.00%
Jun-19
Dec-18
Jun-18
Dec-17
Jun-17
Dec-16
Jun-16
Dec-15
Jun-15
Dec-14
Jun-14
Dec-13
Jun-13
Dec-12
Jun-12
Dec-11
Jun-11
Dec-10
May-09
Nov-08
May-08
Nov-07
0.00%
Skills shortages mentioned Right people with right attitude • The ‘right’ people are just not out there • “Not enough qualified staff’ • Need people with the right attitude who turn up for work • Skill shortages are in our sector nationally.
Hospitality • Experienced hospitality staff • Chefs
• Agricultural staff
Trades/engineering/manufacturing • Licenced experienced truck drivers • Construction management • Supervisors with food manufacturing experience • CNC Machinists • Land surveyors IT/Technology • Business analysts • Microsoft, NET, MVC Developers • Project managers
Special Topics: Awareness of key initiatives Perceptions about the region
Key initiatives 1. Just Transition Summit – 9 & 10 May 2019 2. Taranaki 2050 draft Roadmap 3. National New Energy Development Centre (NNEDC) 4. Hydrogen/H2 Roadmap
Just Transition Summit 9 and 10 May A discussion about how New Zealand can transition to a low emissions economy
AWARENESS Just Transition Summit – 9/10 May 40.0
37.6 35.5
35.0
30.0
25.0
20.0
17.2
15.0
10.0
9.7
5.0
0.0
Not at all aware
Moderately aware Quite aware - read Very Aware - attended heard about it; don't media or other reports event/watched online know much
Just Transition Summit comments • “Some of the speakers sounded really amazing and had interesting and engaging presentations” • “I didn't know about it until it already happened, when I was told by friends in the energy sector”. • “Seemed like a bunch of dreamers with no idea about the practical world”. • “I am very sad that it had to happen. Industry and commerce are the ones who will actually drive the change”.
Taranaki 2050 Draft Roadmap
AWARENESS Taranaki 2050 Roadmap 35.0
31.4 30.0
25.0
25.0
25.0
20.0
18.6
15.0
10.0
5.0
0.0
Not at all aware
Moderately aware heard about it; don't know much
Quite aware - read media or other reports
Very aware - Read document
Taranaki 2050 Roadmap comments “A great initiative” “A ridiculous airy fairy pipe dream!” “The real measurement for impact has to be the execution of activities that drives entrepreneurial activity to solve transition issues”. “I'm all for improving the planet and making it a better place for our children …but I don't believe the general public actually appreciates the ramifications, cost, or requirements these ideas will have”.
National New Energy Development Centre
AWARENESS National New Energy Development Centre 50.0
44.4
45.0
40.0 35.0 30.0
28.9
26.7
25.0 20.0 15.0 10.0 5.0 0.0
Not aware
Moderately aware - heard of the announcement but don’t know detail
Very aware - heard or read about the Centre
National New Energy Development Centre • “Keeping this distinctive and ensuring it delivers outcomes is vital to make the hard work done of getting the funding pay off” • “This Centre is commended but will not substitute the loss of energy jobs already being dis-established by the present Govt. over their energy policies”. • “Who came up with this pipe dream?”
H2 Taranaki Roadmap How hydrogen will play a key role in our energy future
AWARENESS H2 Taranaki Roadmap 40.0
36.2 35.0
31.9
30.0
26.6
25.0
20.0
15.0
10.0
5.3 5.0
0.0
Not at all aware
Moderately aware heard about it; don't know much
Quite aware - read media or other reports
Very aware - Read document and/or attended launch
Hydrogen Roadmap comment • “?????” • “I would be interested in finding out more” • “A dangerous move to pick a winner in the renewable space early on”. • “How are we going to execute this? there will be so much red tape and bureaucracy that people who want to invest and get these projects off the ground will give up”.
What do you believe are ‌
perceptions by people residing outside of Taranaki in relation to our region‌..
Ranking: 0‌10 Holiday Events Lifestyle Place Job/career Family Education Business Investment Progressive location Cool Place
Ranking Results 9.0
8.3
8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
4.9
5.4
5.7
5.8
6.1
6.4
6.9
7.0
7.4
Comments • “Still viewed as isolated - need the northern route improved” • “It’s seen as dated, out of touch, remote, but the mountain and Len Lye is in its favour” • “International tourists - it's out of the way but once they come they love it and a highlight of their trip”. • “…great cafes, arty, friendly” • “A fantastic place to live, houses are affordable. Job opportunities and career advancement hold people back from making the move”
Any recent changes? • “Interest as a short holiday destination has increased. Visitors have been impressed and have enjoyed it” • “In the real estate industry many buyers are attracted to the lifestyle, affordable housing and well regarded schools” • “Still seen as a bit kooky but gaining interest” • “Lots of change since the discussion over stopping oil and gas in the region” • “Perception the Government's cessation of oil and gas production has impacted Taranaki negatively, set the region back considerably and limited its growth and development”
Thank you! www.taranaki.info for more