Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


South Island businesses grow in confidence - survey

Press release

7 January 2013

South Island businesses grow in confidence - Grant Thornton survey

South Island businesses are increasingly bullish, outshining their northern counterparts, according to the latest Grant Thornton IBR survey.

Simon Carey, a Christchurch based partner of Grant Thornton New Zealand Ltd, said that over the next year, 73.20% of South Island businesses expect an increase in revenue or turnover compared with 65.4% in the North Island. Overall 65% of southern businesses are very or slightly optimistic compared with 57.2% in the North Island.

He said that the Christchurch rebuild was a major factor in the growing confidence.

“Last year (2012) I think it’s fair to say that many businesses have been watching from the sidelines as they wait for the city’s blueprint to be finalised and the way cleared for rebuild activity. We’re now almost at that stage and businesses are optimistic about what lies ahead,” Carey said.

“Clearly there will be benefits across the country and in the past year we have already seen some businesses opening an office in Christchurch or expanding their operations, poised for the economic spin-offs which are set to accrue.”

Carey said that while the Christchurch rebuild will have a significant positive impact on the South Island economy for many years to come, the importance of the agricultural sector cannot be under-estimated. Commodity prices remain strong and dairy numbers are growing.

"With large irrigation schemes such as Central Plains Water about to kick off, the importance of agriculture in the South Island will continue to grow. Minister Gerry Brownlee is quoted as saying that for every $1 billion invested in irrigation it will return $1 billion year-on-year. Over $1 billion is earmarked for investment in irrigation in Canterbury alone over the next few years.”

Carey said that both South Island and North Island businesses expect profitability to increase - 64.90% and 67.30% respectively while 26.80% and 24% think it will remain steady.

“That confidence is reflected in the intention of 66% of South Island firms (North Island 51%) to increase investment in plant and machinery, while 47.40% (North Island 34.60%) are planning to increase the number of employees.”

Underpinning the brighter employment picture in the South Island, 44.30% of businesses increased the number of people they employed during the past year against 27.90% in the North Island while 26.80% of southerners (North Island 21.20%) are tipping an increase in salaries by more than inflation and 50.50% (48.10%) in line with inflation.

The jury is out on whether selling prices will rise – 47.40% believe they will but the same number think they will remain unaltered.

Carey said it was encouraging to note that almost half the businesses surveyed (48.50%) did not expect the cost of finance to pose any constraint to expansion and another 19.60% saw it as a minor impediment.

“And it’s certainly good news to find that seventy six per cent expect little or no constraint around long term finance while slightly more than half those surveyed (55.6%) see little or no impediment around shortage of orders and reduced demand.”

- ends -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news