northland chamber

BUSINESS ADVOCATE ARTICLE JANUARY 2011
The start of the new year may well herald in the first tangible signs of change in Northland’s economic environment. Treasury is predicting growth in excess of three per cent, together with higher wages and a reduction unemployment numbers. This is not to say that many businesses are still experiencing difficult times but this news is accompanied by anecdotal evidence that things are finally beginning to improve.

This differs from last year where many businesses felt there was little correlation between what they were hearing from economic analysts in regards to positive growth and what they were seeing in their own operations. This lack of correlation was reflected in the low level of confidence shown in the Chamber of Commerce 2010 last quarterly Business Confidence Survey

As well as a slow return to positive growth there is also the Rugby World Cup which presents an opportunity for Northland businesses to market Northland to the world market as a place to visit, live or do business with. NZ 2011 Business Club has been created by the government to assist those businesses that do not have the resources to leverage business during this event. Local and overseas business-people can join the Club for no cost and then have the opportunity to be put in touch with each other at events showcasing local business.

However while the Rugby World Cup presents an opportunity for Northland business in the short-term, the region needs to look carefully as to what our long-term economic future is. If recent times have taught us anything it is the need to develop a robust and diverse regional economy based on well governed, sustainable businesses. This will require us to examine our existing economic profile and to identify those sectors that present opportunity for real growth.

One such area is manufacturing which is already a significant contributor to the regional GDP. More importantly in Whangarei almost 300 of these businesses have either the Regional or District Council as their landlords. If the councils believe that being landlords of large parcels of non-strategic (whatever this means) land is part of their core business then this provides these councils an opportunity to assist, or at the very least no hinder the development of those businesses.

Encouraging inward investment and new business to Northland is an admirable aspiration but ensuring existing enterprises have an environment in which they can prosper and grow our regional economy is equally important.