venture taranaki: results of the june 2020 …...taranaki business survey •monitors economic...
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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%
Remain the same – 30.5%
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
Improve Remain the Same Deteriorate Don't know
ECONOMIC CONDITIONS| TARANAKI OUTLOOK
Mixed results concerning
Taranaki’s economic
outlook over the next 12
months.
Improve – 28.7%
Remain the same – 23.6%
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
Improve Remain the Same Deteriorate Don't know
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
SPECIAL TOPIC: COVID-19| REMOTE WORKING
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| REMOTE WORKING
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