Coromandel economy outperforms national average

The Coromandel economy expanded by 3.6% over the year to June 2017 topping the national growth rate of 2.8%, according to provisional figures from independent economic analysis firm Infometrics.

"This is brilliant," says our Mayor Sandra Goudie. "This clearly says the Coromandel is a great place to live, work and play. Well done to all those who are doing the hard graft to make this happen. This totally supports our inaugural business awards, which are all about celebrating business excellence," she says.

The Hauraki Coromandel Business Awards are a joint effort between Coromandel's More FM, our Council and Hauraki District Council, and local business. Voting for the People's Choice Award is open until 20 September and winners will be announced at the gala awards ceremony at the Grand Mercure Puka Park on 28 September. See the awards website for more information.

"The 6.2% lift in traffic flows further highlights the additional activity occurring throughout the district. Indicators of construction, visitor activity, retail spending, and vehicle sales are particularly strong. Employment conditions also improved during the quarter," says the latest Infometrics Quarterly Economic Monitor for Thames-Coromandel District.

The full report is available on our website. Click on the green "Infometrics Quarterly Economic Monitor" graphic on the right-hand side of the page to open the report.

The primary sector is in good shape, says Infometrics, with agriculture, forestry and fishing accounting for 8.5% of total jobs in our district, which should provide a boost to professional services, contractors, logistics and wholesale trade.

For example, the aquaculture industry accounts for 7.2% of our district's GDP, with a value of approximately $69.6M a year. The industry employs up to 400 people within the district, with more jobs created indirectly from charter boat operations, engineering, retail and hospitality.

For more on aquaculture's economic contribution to the Coromandel, see the New Zealand Institute of Economic Research report, available on our website.

Improving dairy prices have been felt in the Coromandel, with the payout for the 2016/17 season up $21M from the previous year to $58M.

Visitor spending in the Coromandel over the year was a record $355M compared to $326M a year ago.

The unemployment rate is estimated to have fallen to an average of 3.4% over the year, but "there are some vulnerabilities" Infometrics says. "For example, the recent closure of A&G Price foundry has meant the loss of approximately 100 jobs. Many of these workers will need to look outside of Thames-Coromandel to find new employment with their skills," the report says.

House prices rose 19% over the last year, but the slowdown in price growth in Auckland could impact the Coromandel. House prices are significantly cheaper in our district than Auckland in dollar terms, but relative to income they are just as expensive here because average income is lower.

The Infometrics report sees "significant momentum left in the New Zealand economy" with strong international demand for our exports and high international migration adding to demand for goods and services.

Help for businesses and investors

Interested in investing in the Coromandel? Talk to our Economic Development Manager Colleen Litchfield. Contact her via email on colleen.litchfield@tcdc.govt.nz or phone 07 868 0200 and ask for Colleen. She'll make sure that the red carpet is rolled out, not the red tape.

Or, already running a business here and want some help to take it to the next level?

We've partnered with Waikato Innovation Park to provide business growth advisory services.

Services include a free business needs assessment to support business growth plans, along with free access to the government funding programmes offered by NZTE and Callaghan Innovation and Business Mentors New Zealand.

The advisors can also facilitate access to the Food Innovation Network which provides services and facilities for food manufacturing businesses developing new products.

For more information, see our website www.tcdc.govt.nz/wip

ENDS

© Scoop Media