Taranaki Business Survey
Taranaki Business Survey
Results of the November/December 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 1200 Taranaki businesses. • Cross section of industry type, location and size. • Spans a number of standard economic questions. • Plus special topic: – Skill and talent attraction: experiences, challenges and ideas
NZ Economic Conditions: next 12 months 60.0%
49.7%
50.0%
Status quo dominates Pessimism and optimism divides
40.0%
30.0%
22.5%
22.0%
20.0%
10.0%
5.8%
0.0%
Improve
Remain the Same
Deteriorate
Don’t Know
NZ Economic Conditions: next 12 months NZ Economic Outlook - Next 12 months Improve
Stay the same
Deteriorate
Don't know
70%
60%
November/December 2019 50%
40%
• Same: 50% • (down from 53%)
30%
• Improve 22% • (the same)
20%
• Deteriorate – 22% • (was 20%)
10%
0%
• Don’t know: 6%
Industry conditions: next 12 months Industry Outlook - Next 12 months Improve
Remain the Same
Deteriorate
Unsure/Don’t know
70%
Status quo Mixed Sentiment
60%
50%
• Remain same 45%
40%
• (down from 49%) 30%
• Improve 32% • (down from 35%)
20%
• Deteriorate 19% • (up from 14%)
10%
• Don’t know: 5% Jul-19
Feb-19
Sep-18
Apr-18
Nov-17
Jun-17
Jan-17
Aug-16
Mar-16
Oct-15
May-15
Dec-14
Jul-14
Feb-14
Sep-13
Apr-13
Nov-12
Jun-12
Jan-12
Aug-11
Mar-11
Oct-10
May-10
Dec-09
Jul-09
Feb-09
Sep-08
Apr-08
Nov-07
0%
• (up from 2%)
Conditions Next 12 months: New Zealand v Own Industry New Zealand
Own industry
60.0%
49.7%
50.0%
45.1%
40.0% 31.8% 30.0% 22.5%
22.0%
18.5%
20.0%
10.0% 5.8%
4.6%
0.0%
Improve
Remain the Same
Deteriorate
Don’t Know
Sales: next 6 months Sales Outlook - Next 6 months Improve
Remain the Same
Deteriorate
Don't know/unsure
70%
60%
50%
40%
30%
Improved seasonal sales outlook from last Xmas? • Improve: 47% • (was 56% last time)
20%
• Remain same: 39% • (37% previously)
10%
• Deteriorate: 9% • (was 7%)
0%
• Don’t know: 6%
Taranaki business: concerns High concern
Factors impacting on business 2.5
2
1.5
1
0.5
0
Low concern
What’s changed? What's changed since December 2018 June 2019 3
2.5
2
1.5
1
0.5
0
Nov/Dec 2019
Factors
impacting on business Regulations: • “Rising compliance costs” • “The seeming increase of red tape from local councils” • Food control plans and MPI regulations – impact on SME food businesses and costs.
Legislative change/new policy proposals: • “Making it more difficult for businesses to invest and grow” • Dairy farming – impact of the fresh water policy and ETS on business future
Factors
impacting on business Employment: • Skills shortages e.g. building trades impacting on client delivery • Cost of staff e.g. “pending minimum wage increase (April 1st 2020)
Transportation: • Departure of Jetstar; limited flight options
O&G: • Flow on from Tamarind Offshore
Disruption/change/uncertainty: • AIR BNB market: disrupting traditional regulated industry. • International e.g. US market
Employee numbers – next 6 months Employment Outlook Improve
Stay the Same
Deteriorate
Unsure/Don't know
90%
80%
70%
60%
50%
40%
Status quo majority 58% anticipate employment levels to remain the same. 29% - increase.
30%
20%
10%
0%
10% expect staff numbers to decrease
Skill shortages or difficulty hiring? Skill Shortages Yes
No
100.0%
66% - no skill
90.0% 80.0%
65.6%
shortages
34.4%
70.0%
34%
60.0%
of Taranaki businesses report skill shortages or difficulties recruiting appropriate staff.
50.0% 40.0% 30.0% 20.0% 10.0%
Nov-19
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
0.0%
Skills shortages mentioned Right people with right attitude • • •
People who want to work! Lack of skilled self-motivating staff Employees expecting higher standards & wages than their skills base
Hospitality • • • •
Chefs and sous chef recruitment Front and back of house Attracting/retaining hospitality staff – motivated ones move to cities. Retail and Maori tourism.
Agricultural staff • •
Dairy farm staff On land unskilled labour
Teaching • • •
People with passion in early childhood Teacher shortage impacting Taranaki Certain subjects – Te Reo, technology
Skilled trades and engineering • • • • • • • • •
Competent builders and site foreman Plumbing/gas fitting Painters Quality truck drivers Engineering, project management Procurement, estimating Skilled draftspeople Experienced IT engineers Refrigeration technicians
Professionals • • • •
Qualified/skilled accountants Advisers Sales people Management
O&G • •
Reluctance to come to NZ due to Govt announcement. Trained staff have either left the industry or are thinking about moving to Aus.
Attracting talent and skills “Hard to attract significantly skilled people to Taranaki” “Not many people want to come to a rural location” “Attracting senior people to Taranaki is hard” “Manager position was really hard to fill locally” “Shortage of qualified and experienced specialist in regions” “Difficulty recruiting the most suitable staff – not just settling for those applying”. “The talent pool is narrow and shallow” “Constant issue – no enough well skilled specialists in NZ” “Immigration is our only source” “50 staff are needed for seasonal contracts”
Special topic Skills and talent attraction and ideas
Importance ranking:
Attraction and Retention of staff and Workforce Planning Your business
Your Industry
The Taranaki region
50.0 45.0 40.0
35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0
1. Not that important
2
3
4
5.The most important issue
Does your business employ staff? 80.0
75.3
70.0
60.0
50.0
40.0
30.0
24.7
20.0
10.0
0.0
No
Yes
Does your business plan ahead for its talent and workforce needs? 50.0
42.9
45.0 40.0 35.0
31.1
30.0
25.2 25.0
20.0 15.0 10.0 5.0 0.0
We don't plan at all, but respond to needs as they come up
Yes - we plan for the short term (next 3-12 months)
Yes - we plan for the longer term (1 yr+)
Staff number expectations: In two years time do you expect to have: I don’t have staff and don't expect to in the future
8.8
Fewer staff than you have today
5.6
More staff than you have today
50.6
A similar number of staff as you have today
35.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Do your staff levels
remain relatively constant or fluctuate? 90.0
80.3 80.0
Almost 20% have fluctuations
70.0
60.0
50.0
40.0
30.0
19.7
20.0
10.0
0.0
Stay relatively constant
Fluctuate
Reasons – workforce fluctuations
Jan/Feb
March/April/May
Retail
Jun/July/Aug
Sept/Oct/Nov
Dec Xmas/retail
Tourism/Hospitality
Tourism/Hospitality
Dairy/Ag
Dairy/Ag
Horticulture, seasonal produce, events, client demand, O&G projects, shutdowns
If fluctuates
How easy is it to find staff for peak times? 45.0
Almost 40%
38.6
40.0
35.0
30.0
25.0
22.7
20.0
18.2 15.9
15.0
10.0
5.0
4.6
0.0
1. Very easy
2
3
4
5. Extremely challenging
Over the last five years, what proportion of new staff have been recruited from outside the region? 60.0 55.0 50.0
45% outside region
40.0
30.0
20.0
16.1
14.8
9.4
10.0
4.7 0.0
No new staff have come from outside Taranaki
2
3
4
5. All new staff have come from outside Taranaki
Has the number of staff recruited from outside the region changed in the last 5 years? 60.0
53.4 50.0
40.0
31.1 30.0
20.0
13.5 10.0
2.0 0.0
We are now recruiting more staff from outside Taranaki
We are now recruiting fewer staff from outside Taranaki
About the same
Not applicable
Have you recruited internationally to secure the necessary skills/people for your business? 60.0
51.0 50.0
40.0
30.0
25.8
23.2 20.0
10.0
0.0
Yes
No
Not applicable
What skills -internationally? • Drilling and petroleum engineers, geoscientists • Well testing • Consulting engineers and designers • IT engineers, technical • Business analyst, project management
• • • • • • • •
IT/Cyber security Software development Electrical engineers Marine sector specialist Automotive technician Pharmacists Skilled farm assistant Land surveyor
Skills hardest to recruit for? • Skilled, qualified trades • Carpenters, builders, drivers, • Sub-trades, painting, plumbers, gasfitter, heat pump installers • Architectural drafting and design • Land surveying • Engineers – various types of specialists
• IT e.g. software development, Cyber Security • Teachers • Hospitality e.g. chefs • Specialists e.g. clinical psychologist • Professionals e.g. senior managers, sales • Knowledge of Te Ao Māori o Taranaki • Leadership, reliability, attitude
Will your
skills/talent needs will be the same in 5 years’ time? 60.0
51.3 50.0
40.0
30.0
25.6 22.4
20.0
10.0
0.0
Yes
No
Unsure
If not – why? • • • • • • •
More digital technology Higher skills – automation, robotics Less ‘real’ work Greater communication/service skills Demographics – ageing, migration More demand/growth plan/international Diversifying, adapting
Gaps or needs in upskilling/talent development in Taranaki • Apprenticeships in the trades and skilled artisans – e.g. stonemasons, butchers
• Building/aligned trades – Including on site construction leadership
• • • • • •
Dairy/farming – challenged by current industry uncertainty and perceptions
Hospitality as a career, tourism, retail, sales Qualified engineers Teaching Specialist/niche/growth – Risk insurance industry; digital marketing
• Leadership (genuine) • Innovation/New idea progression – Realities such as business implications, scaling up and financing etc.
Ideas to attract/develop/retain staff 1. Apprenticeship training 2. Making the most of learning facilities –
e.g. WITT, PIHMS, and provide pathways for students
3. School initiatives and tasters e.g. Ag challenge training 4. Open workshops for people to try jobs/businesses 5. Cadet schemes run by businesses – develop skills; add incentives as they progress e.g. pay rates, medical and life insurance, wellness programmes
6. Business & industry collaborations – Promotions and collective resources to bring expertise to the region, where no one company can afford to do it on their own.
Thank you.
Taranaki Business Survey
www.Taranaki.info for more