Southland Business Confidence Remains Positive
A couple of points to note here. The survey shows that business activity is ticking along however it shows the decline in things agricultural. On the positive side the survey shows that Tourism is now enjoying its time in the sun, and long may that prosper.
Photo: courtesy NewstalkZB
Another point to note is that many businesses are latching on to the internet and social media for marketing with many businesses planning investment in online marketing and sales. The main concern here as the survey points out is quality of broadband and mobile services.
Good to see many local businesses are planning serious investment in staff training.
Venture Southland has just completed its annual survey of the Southland business community and results have revealed Business confidence remains positive.
Business Projects Coordinator Rhiannon Suter says that while confidence remains positive, the current economic headwinds impacted on confidence compared to 2015 Business Survey findings.
59% of businesses are positive about the Southland economy and business environment (down 16% from last year) and 78% are positive about their own business (down 9%).
“Business performance in sales remains strong with 81% of businesses reporting increased or steady sales, down 5% on 2015″
“However, there is considerable variation between sectors”
“The agricultural sector is experiencing considerable challenges relating to lower commodity prices. Confidence in the sector has declined from 64% positivity in 2015 to 34% in 2016.
(1 It should be noted that the sector specific findings are of a lower confidence rating than the findings for the business community as a whole due to the smaller sample size. Only very clear trends have been discussed and the possibility forsampling bias must be taken into account.)
The proportion experiencing increased sales has also declined. However, 70% of agricultural operators remain positive about their business”
Confidence in the sector has declined from 64% positivity in 2015 to 34% in 2016. The proportion experiencing increased sales has also declined However, 70% of agricultural operators remain positive about their own businesses.
“In contrast, the Tourism and Accommodation sectors have been having a great season confidence is riding high, at 84% and 77% positive responses, respectively. 68% of Tourism operators and 66% of accommodation providers have increased sales over the last year. 94% of Tourism operators and 81% of Accommodation operators are positive about the future of their businesses.”
Photo: Mal Gayfer
Suter added that digital technology is becoming an increasingly important part of business in Southland.
“72% of businesses have a website and 64% use social media to promote their business”
“However, businesses are concerned about the quality of broadband and mobile services and the impact of these services on their business. Businesses were asked what would improve ease of doing business in Southland. Quality of broadband and mobile infrastructure and services was the number one concern”
After staff training, online marketing is the most common area of planned investment for the year ahead: 45% of businesses are planning investment in online marketing and 27% in online sales. For the 42% of businesses implementing new ways of working, investment in digital technology is by far the most common area of investment (66%). Websites are the second most common source of business information and support, used by 53% of businesses; only Accountants are a more important business resource.
Stephen Canny, Group Manager Enterprise and Strategic Projects, said that the survey findings are consistent with the feedback being received through the various business programmes and it was pleasing to see the positive growth in the Tourism and accommodation sectors, at a time when other areas of the economy, including the dairy sector, are facing a period of significant change. He said it was also interesting to note that there has been interest in new investment in the region which is a positive indication of long term business confidence.