venture taranaki: results of the june 2020 …...taranaki business survey •monitors economic...

Venture Taranaki: Results of the June 2020 Business Survey

Taranaki Business Survey

• Monitors economic confidence by Taranaki enterprises and their views on

key business issues

• Undertaken by Venture Taranaki 6-monthly since 1999

• Sent to over 1700 enterprises; cross-section of industry type, location, size

• Standard economic questions, plus a special topic: COVID-19 impacts and

learnings

• Timing – undertaken just as the nation shifted to Alert Level 1

ECONOMIC CONDITIONS| NEW ZEALAND

The majority of

respondents do not have a

positive outlook on the

national economy over the

next 12 months.

Improve – 29.3%

Remain the same – 9.2%

Deteriorate – 51.2%

Don’t know – 10.3%

29.3%

9.2%

51.2%

10.3%

Improve Remain the same Deteriorate Don't know

0%

10%

20%

30%

40%

50%

60%

NZ economic outlook - next 12 months

ECONOMIC CONDITIONS| NEW ZEALAND

Sharp increase in view that

economic outlook will

deteriorate - 51% of

respondents, compared to

22% previously.

More uncertainty around

the economic outlook than

we have seen historically. 0%

10%

20%

30%

40%

50%

60%

70%

No

v-0

7

Ap

r-0

8

Sep

-08

Feb

-09

Jul-

09

De

c-0

9

May

-10

Oct

-10

Mar

-11

Au

g-1

1

Jan

-12

Jun

-12

No

v-1

2

Ap

r-1

3

Sep

-13

Feb

-14

Jul-

14

De

c-1

4

May

-15

Oct

-15

Mar

-16

Au

g-1

6

Jan

-17

Jun

-17

No

v-1

7

Ap

r-1

8

Sep

-18

Feb

-19

Jul-

19

De

c-1

9

May

-20

NZ economic outlook - next 12 months

Improve Remain the Same Deteriorate Don't know

ECONOMIC CONDITIONS| INDUSTRY OUTLOOK

Similar to NZ outlook,

increasing sentiment

towards industry

deterioration in the

coming 12 months.

Improve – 32.2%


Deteriorate – 31%

Don’t know – 6.3% 0%

10%

20%

30%

40%

50%

60%

70%

No

v-0

7

Ap

r-0

8

Sep

-08

Feb

-09

Jul-

09

De

c-0

9

May

-10

Oct

-10

Mar

-11

Au

g-1

1

Jan

-12

Jun

-12

No

v-1

2

Ap

r-1

3

Sep

-13

Feb

-14

Jul-

14

De

c-1

4

May

-15

Oct

-15

Mar

-16

Au

g-1

6

Jan

-17

Jun

-17

No

v-1

7

Ap

r-1

8

Sep

-18

Feb

-19

Jul-

19

De

c-1

9

May

-20

Industry outlook - next 12 months


ECONOMIC CONDITIONS| TARANAKI OUTLOOK

Mixed results concerning

Taranaki’s economic

outlook over the next 12

months.

Improve – 28.7%


Deteriorate – 39.7%

Don’t know – 8.1%

28.7%

23.6%

39.7%

8.1%

Improve Remain the same Deteriorate Don't know

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Regional outlook - next 12 months

ECONOMIC CONDITIONS| NZ vs INDUSTRY

Respondents feel more

positive about their own

industry outlook as opposed

to the national or regional

economic outlook.

Respondents identify the

greatest deterioration will

take place in the national

economy compared to their

own industry and regional

economy.

29.3%

9.2%

51.2%

10.3%

32.2%30.5% 31.0%

6.3%

28.7%

23.6%

39.7%

8.1%

0%

10%

20%

30%

40%

50%

60%

Improve Remain the Same Deteriorate Don’t Know

Conditions over the next 12 months

New Zealand Own Industry Taranaki

ECONOMIC CONDITIONS| SALES FORECAST

Sales forecast less

confident for the next 6

months.

Improve – 36% (was 47%)

Remain the same – 36%

(was 37%)

Deteriorate – 19% (was 8%)

Don’t know – 9% (was 6%)0%

10%

20%

30%

40%

50%

60%

70%

No

v-0

7

Mar

-08

Jul-

08

No

v-0

8

Mar

-09

Jul-

09

No

v-0

9

Mar

-10

Jul-

10

No

v-1

0

Mar

-11

Jul-

11

No

v-1

1

Mar

-12

Jul-

12

No

v-1

2

Mar

-13

Jul-

13

No

v-1

3

Mar

-14

Jul-

14

No

v-1

4

Mar

-15

Jul-

15

No

v-1

5

Mar

-16

Jul-

16

No

v-1

6

Mar

-17

Jul-

17

No

v-1

7

Mar

-18

Jul-

18

No

v-1

8

Mar

-19

Jul-

19

No

v-1

9

Mar

-20

Sales outlook - next 6 months


ECONOMIC CONDITIONS| TARANAKI BUSINESS CONCERNS

Greatest concern:

Ongoing/unknown impacts

of COVID-19 (23%)

Others:

• Declining market

• Costs of business

• Weather

23%

19%

11%

10% 10% 10% 9%8%

8%7%

5.95%

2.98%2% 2%

0%0%

5%

10%

15%

20%

25%

Factors that have the largest impact on Taranaki enterprises

ECONOMIC CONDITIONS| FACTORS

• “Now focusing more on the local market while the borders are indefinitely closed”

• “International events impacting on overall economy”

• “Impact of COVID border restrictions on ability to travel to execute business”

• “Uncertainty in the industry”

• “Reduced sustainability funding confidence”

• “More concerned that we do not get a repeat of what has been, as economy would be destroyed”

• “Many of our supplying businesses have not adapted well … a lot will be going out of business”

• “Finance options have changed but opportunities to source elsewhere have increased”

• “I am anticipating getting more market share as competitors struggle with post-COVID environment”

Travel/borders

Confidence

New opportunities

ECONOMIC CONDITIONS| EMPLOYEE NUMBERS NEXT 6 MONTHS

Majority anticipate

holding firm on staff

numbers.

From the last survey we

are seeing an increased

confidence in enterprises

being able to retain staff,

although not increase

staffing numbers. 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No

v-0

7

Ap

r-0

8

Sep

-08

Feb

-09

Jul-

09

De

c-0

9

May

-10

Oct

-10

Mar

-11

Au

g-1

1

Jan

-12

Jun

-12

No

v-1

2

Ap

r-1

3

Sep

-13

Feb

-14

Jul-

14

De

c-1

4

May

-15

Oct

-15

Mar

-16

Au

g-1

6

Jan

-17

Jun

-17

No

v-1

7

Ap

r-1

8

Sep

-18

Feb

-19

Jul-

19

De

c-1

9

May

-20

Employment outlook

Increase Remain the Same Reduce Don't know

ECONOMIC CONDITIONS| SKILLS SHORTAGE OR DIFFICULTY HIRING?

79% - do not currently

experience skill

shortages.

This is the highest

confidence in the ease of

hiring appropriately

skilled staff since

December 2016.0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No

v-0

7

May

-08

No

v-0

8

May

-09

De

c-1

0

Jun

-11

De

c-1

1

Jun

-12

De

c-1

2

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Jun

-15

De

c-1

5

Jun

-16

De

c-1

6

Jun

-17

De

c-1

7

Jun

-18

De

c-1

8

Jun

-19

No

v-1

9

Jun

-20

Skill shortages

Yes there is a skill shortage No skill shortage

• “People with the right attitude and willing to work”

• “Require skilled staff which takes 2/3 years to attain a commercially viable level”

• “Lack of skilled professional pool in Taranaki”

• “Young staff don’t want to work”

• “We need an extra but will wait until business returns to a little normality”

• “These days it is the young with the skill. But with the skill is not practical experience.

Following that when you employ and train them up, they leave and head elsewhere for

newer opportunities”

ECONOMIC CONDITIONS| SKILLS SHORTAGE MENTIONED

SPECIAL TOPIC | COVID-19 IMPACTS AND LEARNINGS

SPECIAL TOPIC: COVID-19| PANDEMIC RESPONSE

New Zealand’s

handling = 3.95 stars

(out of 5)

Taranaki’s handling =

3.89 stars (out of 5)

New Zealand’s handling of the COVID-19 pandemic, including decisions this country has made concerning lockdown, information provision and support?

Taranaki’s handling and response to the COVID-19 pandemic, including the lockdown phases, information and support?

SPECIAL TOPIC: COVID-19| ENTERPRISE IMPACTS

45% - significantly

impacted by COVID-19,

but were confident in

their ability to recover.

16% of respondents not

significantly impacted by

COVID-19.

44.7%

25.2%

15.7%

8.2%

6.3%

0.0%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Significant setbacks butwill recover

Some setbacks but backto normal

Not significantlyimpacted

Devastated and unsure ifwill continue

Increase in trade andopportunities

No longer trading

Impact of COVID-19 on enterprises

SPECIAL TOPIC: COVID-19| AREAS IMPACTED

The top three areas of

business most impacted:

1. Revenue slowing or

ceasing

2. Stress and anxiety

3. Cashflow difficulties

64.4%

39.4% 37.5%

20.0% 20.0%

13.1%10.6% 10.0%

8.1% 8.1% 8.1%

1.9% 0.6%0%

10%

20%

30%

40%

50%

60%

70%

Top three areas impacted by the COVID-19 pandemic

SPECIAL TOPIC: COVID-19| REMOTE WORKING

48% of Taranaki

enterprises surveyed

shifted to remote/virtual

working during Alert

Levels 4 and 3.

41% of enterprises

surveyed did not shift to

remote/virtual working.

47.8%

40.9%

11.3%

Yes No Other

0%

10%

20%

30%

40%

50%

60%

Percentage of enterprises that shifted to working remotely/virtually (all or in part), during Levels 4 and/or 3

SPECIAL TOPIC: COVID-19| INFRASTRUCTURE ADAPTABILITY

39% of enterprises reported

the transition to remote

working had a low impact

given their infrastructure.

Those that answered ‘other’

had only part of their

enterprise working

remotely, and the other

already had flexible work

practices in place.

39.1%

16.5%

8.3%

1.5%

34.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Low impact Moderate impact High impact Other Not applicable given the natureof work

How did enterprises infrastructure adapt to remote / virtual working

When asked how their enterprise’s organisation culture adapted to the change of virtual/remote working,

the following responses were received:

• “Badly, very time consuming for little reward”

• “No change, the external social aspect however was affected”

• “Really well. Created excellent communication streams, which I think helped with team moral”

• “We adapted quickly and made sure we scheduled regular catch-ups and virtual social events outside work

hours – had competitions etc.”

• “There is no way we could sustain that for a long period of time”

• “We experienced some cultural disconnect and isolation and had to regularly check in on our peoples’

wellbeing”

SPECIAL TOPIC: COVID-19 | ORGANISATIONAL CULTURE

Cont.

• “Well. Accelerated adoption of suitable protocols”

• “Well and made sure communication was top of list”

• “Devolved decision making to a cross-function team operating through TEAMS worked well”

• “With great difficulty”

• “High trust model worked well in most cases”

• “Trying to adopt more virtual working in regular times including some staff working from home for the

foreseeable future (less people in the open space office = less distractions)”

SPECIAL TOPIC: COVID-19 | ORGANISATIONAL CULTURE


Majority - not

considering

implementing a remote

working option for staff.

18% - would consider

28% - N/A - not an

option

54.4%

27.9%

17.7%

No N/A Yes

0%

10%

20%

30%

40%

50%

60%

Percentage of enterprises considering, or in the process of implementing a remote or virtual work option for all or

some staff

Details provided of considered/implemented approach:

• “In the process of developing a co-working space in South Taranaki”

• “Opportunity for individual staff to work both at home and at the organisation’s locations”.

• “Providing remote access via vpn and laptops”

• “Flexiweek allowing a proportion of the working week to be worked flexibly including

remotely”

• “We now have the permanent option of working a few days per week from home if they

choose”


SPECIAL TOPIC: COVID-19| BIGGEST RETURN TO WORK CHALLENGES

29% - social

distancing/sanitisation

17% - customer tracking

Other challenges:

• Travel restrictions,

• Product availability,

• Anxiety/stress among staff

• Trade restrictions.

29.3% 28.7%

16.6%

12.7%

7.0%5.7%

Not applicable Ensuring appropriatedistancing and

sanitisation wasavailable

Customer / clientmanagement /

tracking

Other Communicatingexternal visitor

appropriateness withstaff

Consideration of theneed of a workplace,or co-working space

0%

5%

10%

15%

20%

25%

30%

35%

Biggest challenges faced by enterprises as they returned to business after lockdown

SPECIAL TOPIC: COVID-19| LOOKING AHEAD 3-6 MONTHS

Over 43% of enterprises

are unsure of the

ongoing impacts of

COVID-19 on their

business, with over 28%

of enterprises

envisioning an ongoing

negative impact.

43.4%

28.3%

10.7% 10.1%

7.6%

Not sure yet The ongoing impact will benegative for our enterprise

The ongoing impact will bepositive for our enterprise

No ongoing impact, notconcerned at all

Other

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

How concerned are enterprises on the ongoing impacts of COVID-19 over the next 3-6 months

SPECIAL TOPIC: COVID-19| WORKFORCE NUMBERS

45% - anticipate no change

to current workforce

numbers

14.6 - decrease

13.8% - unsure

9% - increase

45.3%

17.6%

13.8%

8.8%7.6%

3.8%1.9% 1.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

No change N/A Unsure Increasingworkforce

Reducing by<10%

Reducing by<25%

Reducing by>50%

Reducing by 26-49%

Anticipated (or already made), changes to workforce numbers as a result of COVID-19

SPECIAL TOPIC: COVID-19| ‘CATCHING UP’ WITH WORK

55% - no rush to ‘catch up’ with

work once Alert Levels lowered.

38% - Experienced ‘catch up’

Other:

“had to put projects on hold

due to cashflow issues with

investors”,

“Had a big rush now very slow”,

“Extra work but less staff and

more hours”.

54.7%

38.4%

0%

10%

20%

30%

40%

50%

60%

No Yes

Are enterprises anticipating/experiencing a rush to 'catch up' with work demands

* Responses do not equal 100% due to respondents being able to enter comments instead of selected a yes or no option

SPECIAL TOPIC: COVID-19| NEW OPPORTUNITIES

28% - COVID-19 has

created new commercial

opportunities for them.

“New commercial

opportunities are likely …

it’s a matter of keeping

aware of the challenges

and changes.”

67.9%

27.7%

4.4%

No Yes Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

Has COVID-19 created new commercial opportunities for enterprises

SPECIAL TOPIC: COVID-19| BORDER RESTRICTIONS AND GLOBAL IMPLICATIONS ON BUSINESS

Results – quite close

52% - global border

restrictions did not

directly or indirectly

impact on their

business.

48% - did impact on

their business.

51.6%48.4%

No Yes

0%

10%

20%

30%

40%

50%

60%

Will global border restrictions or global implications have a direct or indirect impact Taranaki enterprises

• “Options for online digital selling of information will be implemented”

• “Look at preparedness of remote work”

• “Better systems for electronic review and sign off”

• “Less travel. More electronic communications, less direct contact with

clients”

• “Better internal communication and better management of expenses”

• “To be better prepared for future shocks”

SPECIAL TOPIC: COVID-19| PRACTICES AND LEARNINGS TO BE INTRODUCED

Tech

Finance

• “Reduced demand for commercial space – increased flexibility for employees”

• “More readiness to accept non-traditional work practices, e.g. virtual meetings”

• “Fear of travel”

• “Financial viability of business”

• “Slowing in spending as people are more cautious”

• “More focus on innovation, R&D, local manufacturing and exporting”

• “A more centralised economy”

• “More understanding of Taranaki’s work force capabilities and keeping work local”

SPECIAL TOPIC: COVID-19| ENDURING CHANGES AND TRENDS

Change in methods of working

Financial considerations

Support local

SPECIAL TOPIC | TARANAKI EXPERIENCE AND LOOKING AHEAD

COVID-19| TARANAKI EXPERIENCE

Since mid-March, almost

600 businesses have

approached Venture

Taranaki for enterprise

support due to COVID-19.

Approximately 86% of

those businesses were

from New Plymouth

district.

55.3%

17.0%

15.3%

6.7%

5.7%

Advice sought by Taranaki Enterprises

Financial

Businesscontinuity

Digital strategy

HumanResource

Legal

Over 70% of enterprises

surveyed during lockdown

were extremely or very

concerned about the impact

of COVID-19 on their

business, it was no surprise

that over 80% of enterprises

had accessed the

Governments Wage and/or

Leave subsidy scheme.

COVID-19| TARANAKI EXPERIENCE

Venture Taranaki supported

enterprises with two COVID-

19 programmes; a Local Fund

and the Regional Business

Partners programme (a

national fund). These funds

were used by businesses to

access a range of professional

services and advice.

Funds issued -$194,400

Funds issued -$501,394

Enterprises supported - 486

Enterprises supported - 227

Local Fund Regional Business Partners Programme

COVID-19| LOOKING AHEAD

Venture Taranaki is leading the economic recovery pillar aspect of the regional recovery plan. The tactical

economic pillar plan has been created to guide and focus efforts from May 2020 to mid-2023 and integrates

Tapuae Roa and Taranaki 2050 Actions, shaped by COVID-19 impacts.

Thank you | www.Taranaki.info for more

venture taranaki: results of the june 2020 …...taranaki business survey •monitors economic...

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