Business News

New Zealand businesses still have a lot to learn if they want to succeed in lucrative Asian markets, according to Crowe Horwarth Managing Principal and current President of the Hong Kong New Zealand Business Association Andrew Sayers. Sayers, who leads the firm’s Asia Business team in New Zealand, said New Zealand companies have made big strides in recent years, however, there was a lot of room for improvement. “The Asian region is playing an increasingly important role in our economy, accounting for six of our current top 10 trading partners,” he said. “There are still significant trade and investment opportunities that have yet to be explored but New Zealand businesses need to put greater effort into understanding and engaging with their Asian counterparts. “Cultural and values differences continue to present challenges for doing business in Asia, and can often be the tipping point when it comes to getting something off the ground locally or offshore. If done well, the benefits of improving business relationships between New Zealand and Asia are numerous, from job creation to joint ventures.” Sayers said with the surge in business opportunities between the Asia Pacific regions, Crowe Horwath had moved to bolster its Asia Business team. Recent local appointments to the global accounting and business advisory firm have included high powered Asian business experts Kenneth Leong and Yan Zhang. Zhang has over 20 years experience in international trade and investment, while Leong has a long track record of facilitating business across cultures, from deal origination to execution. “In essence, they will act as ‘relationship brokers’ between Asian investors and Asian business owners, and New Zealand businesses. I have no doubt that our clients will benefit from the wealth of experience and extensive Asian networks that both Zhang and Leong bring to the business.” Sayers said the […]

There is a growing demand by New Zealand businesses for a return to government intervention in sustainable development issues, said one of the keynote speakers at the recent Sustainability Symposium at the University of Waikato. Professor of Management Communication Juliet Roper says the New Zealand government has taken a hands-off approach to the environment and climate change, by claiming that too much regulation would economically disadvantage New Zealand businesses relative to international competitors. Yet despite initial relief from the business community, her research shows some businesses are now concerned about the repercussions for New Zealand’s ‘clean, green’ brand image. “New Zealand is falling behind the rest of the world in regulating for sustainable business practices, especially in comparison to European countries,” says Professor Roper. “We have been warned of the flow-on consequences of this for years by major UK retailers such as Sainsbury’s and Marks and Spencer.” “There needs to be more stringent legislation and that needs to be monitored for compliance. We all benefit from New Zealand’s clean, green image, so we need to back it up with some overarching policy,” says Professor Roper. The sustainability symposium attracted about 50 researchers from across campus to examine sustainability from a wide range of economic, social, education, health and cultural perspectives. About half of the academics who presented papers at the symposium were from Waikato Management School, which was the first business school in New Zealand to place a strong focus on sustainability and corporate social responsibility.

New Zealand construction activity is rebounding from a slump during the recession as private sector work picks ups, according to a property consultancy. “Building construction activity is recovering strongly,” Rider Levett Bucknall said in its 2015 first quarter report on trends in property and construction. “After a deep slump during the recession, activity has rebounded strongly and has surpassed the pre-recession peak.” Public sector construction on health and education projects has remained resilient, providing a buffer during the recession, and now private sector projects for offices, shops, industrial and storage buildings are recovering, the report said. Investment intentions and building consents suggest construction activity will improve further through 2015, it said. Non-residential construction has been driven by the rebuilding of earthquake-damaged Canterbury and increased demand from an expanding Auckland, and further aided by earthquake strengthening. In Christchurch, the focus is shifting to the CBD as residential repair work nears completion, while in Auckland strong demand is emerging for new buildings as the city’s buoyant economy has soaked up vacant space, the report said. Demand for industrial properties is supported by strong growth in the logistics sector, underpinned by increased imports as domestic manufacturing wanes, it said. Still, farm building construction may slow as a slump in dairy incomes crimps farmer spending, the report said.

The devil of the detail is still to come.   By Bruce Goldsworthy Many commentators didn’t score Andrew Little’s State of the Nation speech on January 28th very highly. But its very early days for the new Labour leader, and his speech was all about scene setting for the party’s future. However, some things left unsaid will give manufacturers serious misgivings. Dr Oliver Hartwich of the NZ Initiative noted that Little wants to see his party on the side of those creating wealth, jobs and income, and his is a truly progressive vision. Importantly Little acknowledged “wealth had to be created first before it could be shared.” When has a Labour leader ever said out loud such a thing? Its especially good news for manufacturers. Little was quick to reference his own background in the Engineering, Printing and Manufacturing Union, and draw on his experiences with the likes of Fitzroy and Fonterra. He stated the economy is all about jobs, what is required to make higher paid jobs, and what works to keep jobs in New Zealand. To grow the pie, (before seeking to redistribute it) Little said he will shortly be discussing measures that create wealth across: • How to harness the power of small businesses. Small, nimble, flexible, innovative businesses are to be placed at the centre of growth and job creation. • Getting serious about housing affordability. • Ensuring Auckland operates as an internationally competitive city, breaking the gridlock holding it back. • Developing a manufacturing sector fit for the 21st century. Here we start to come unstuck. In noting 41 per cent of the jobs created last year were in firms with fewer than 20 employees the question inevitably arises: So 59 per cent were created in larger firms? The Little vision will also focus on […]