2013 Q1 BCS

Media Release: For Immediate Release Media Release: Business confidence in Northern region soars A business confidence survey undertaken by the Chambers of Commerce in the Northern region, extending from Northland to Taupo but excluding Auckland, shows one of the most significant lifts in business confidence that region has seen in the last decade. There has been a shift from those firms which have either expected the economy to deteriorate over the previous six months or deliver more of the same to a large percentage of those surveyed expecting the economy to improve over the next six months. Northern regional confidence Aug 12 Nov 12 Feb 13 Improve 30% 29% 48% Same 56% 53% 46% Deteriorate 14% 18% 5% Business owners responding to the survey also had a very positive view of the economy over the next six months with over 60% expecting the economy to improve up from 47% in November 2012 and 49% in August 2012. A rising concern for those looking to expand their businesses is the fact that 25% of those surveyed are having difficulty finding the right people with the right skills. Chamber spokesperson Tony Collins CEO NZ Chambers of Commerce Northland, suggested that this skill shortage would stifle growth. “Every effort should be made to invest in training and alert the Chamber of specific skill shortages so it can work with Government agencies to mitigate skill shortages,” he said. The survey also found: • Employment expectations are up • Hours to be worked up • Profitability expectations up “I believe the continued good fortunes of the agriculture sector have helped people’s confidence, a focus away from the issues on Europe and onto the massive opportunities in the Asian markets – and a good summer,” said Mr Collins. ENDS Summary of survey results attached For more information, please contact: Tony Collins | CEO | NZ Chambers of Commerce Northland 027 444 1010 | ceo@northchamber.co.nz Attached: Full results of Northern Regional Business Confidence Survey Northern regional confidence Aug 12 Nov 12 Feb 13 Improve 30% 29% 48% Same 56% 53% 46% Deteriorate 14% 18% 5% Personal Business Outlook Aug 12 Nov 12 Feb 13 Improve 49% 47% 60% Same 41% 42% 33% Deteriorate 10% 10% 8% Skilled Employment Aug 12 Nov 12 Feb 13 Easier 11% 10% 8% Same 43% 42% 46% Harder 24% 23% 25% N/A 23% 25% 21% Unskilled Employment Aug 12 Nov 12 Feb 13 Easier 20% 18% 18% Same 38% 35% 46% Harder 5% 5% 4% N/A 38% 42% 32% Most limiting Business Factor Aug 12 Nov 12 Feb 13 Capacity 10% 9% Demand 50% 51% Finance 24% 22% Supplies 2% 2% Labour 5% 6% Other 9% 10% Number of Full Time Employees changes in next three months Nov 12 Feb 13 Up 14% 20% Same 71% 67% Down 7% 6% N/A 9% 7% Total hours worked in next three months Nov 12 Feb 13 Up 30% 40% Same 55% 50% Down 12% 9% N/A 2% 0 Expected profitability for next three months Nov 12 Feb 13 Up 25% 35% Same 47% 46% Down 26% 15% N/A 2% 4%