Q&A - The Burning Issues
How has our business community fared through the trials and challenges of 2011 and how do the prospects for the next 12 months stack up? For our final Burning Issues of the year, the Business Channel’s Michael Campbell put these questions to six leaders of our local business associations.
Business Association leaders
Peter White
Takapuna Beach Business Association
What has been the greatest accomplishment for business in your area over the last year?
Recognition by Auckland Council of the role that Takapuna Beach can play in helping to ensure that Auckland becomes the most liveable city in the world - Takapuna Beach is named as one of the eight metropolitan centres in Auckland which will receive prioritised spending ($440 million has been earmarked in the Draft Long Term Plan to be spent over the next 20 years; $290 million in the next 10). This recognition will help to accelerate Takapuna’s redevelopment - for a long time it has under performed, however it is currently entering a renaissance period, with astute investors such as Bob Jones realising its potential and making substantial investment in the town centre.
Did the RWC have any affect – positive or negative – on North Shore businesses?
RWC has had a marvellous effect on the country, portraying New Zealand in a positive manner to the rest of the world. We have embraced the RWC; a carnival atmosphere has endured, providing a most memorable tournament and proving us very hospitable hosts. However few businesses have benefited by the RWC - most retail has suffered, although some hospitality providers in Takapuna are doing extremely well. Both residents and tourists have prioritised the RWC, paying large amounts to attend games and partaking in social occasions. Consequently there is little discretionary spend available, however the All Blacks won the final - there is a good chance that the purse strings will remain open and we will experience a strong Christmas trading period, on the back of the positive mood of the nation.
What challenges are businesses facing in the current economic climate?
Survival has been the biggest challenge during the times of the Global Financial Crisis. New Zealand has survived better than most, however the fragility of the European and American economies could result in further difficult times.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
We are most positive about Takapuna’s 2012 prospects. There is a great deal of positivity about its future and significant investment in the town centre. Alan Wiltshire’s McKenzies Project (the first major retail redevelopment that will help turn Takapuna to face the sea) will be opened in March; The Hurstmere Green redevelopment will be completed by Christmas and work on both the National Ocean Water Sports Centre and the Merge should begin before the end of the year. Takapuna has the lowest retail vacancy rate amongst the major town centres in Auckland and there are a number of redevelopment plans for existing buildings. Auckland Council’s commitment to Takapuna has provided further impetus and the future looks extremely positive.
Carole McMinn
Mairangi Bay Business Association and
Torbay Business Association
What has been the greatest accomplishment for business in your area over the last year?
Mairangi Bay: We are a relatively new BID and this last year we have really started to see many of the projects come to maturity. For the first time in many years, all the businesses are working together for the community and the common good, rather than just as individuals. Working with other community groups and the development of our Village News magazine has been really good.
Torbay: This year we marketed Torbay as a Centre of excellence for health and beauty, as half of our businesses fall under this umbrella. We have almost every aspect of health and beauty very well represented. We also rebranded ourselves with a more up to date image.
Did the RWC have any affect – positive or negative – on North Shore businesses?
Mairangi Bay has been quieter than normal during the RWC.
RWC passed Torbay by!
What challenges are businesses facing in the current economic climate?
Mairangi Bay: The challenges are huge. Spending nationally has reduced, so there are more businesses chasing a smaller pot. It’s also important to keep a good balance of businesses in the Village, to make it an attractive and interesting Centre to visit.
Torbay: Because of higher fuel costs, people prefer to shop locally - we just need to provide a high level of service.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
Mairangi Bay: 2012 will hopefully see an upturn in growth of sales. We are a fabulous Centre, with a diverse range of individual stores all giving good service. We are planning for an upturn.
Torbay: Due to the impending start to the development at Long Bay we are in a unique position to capture these new residents.
Heather Bell
Browns Bay Business Association
What has been the greatest accomplishment for business in your area over the last year?
Survival during tough times.
A new committee full of enthusiasm and good ideas to invigorate Browns Bay business.
Did the RWC have any affect – positive or negative – on North Shore businesses?
Negative - especially during matches - people either staying home to watch or going to city/fan zones.
What challenges are businesses facing in the current economic climate?
Public uncertainty about the economy’s future and people’s reluctance to spend.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
For innovative businesses there’s always opportunity for growth. Businesses need to concentrate on outstanding customer service - building a loyal customer base is the best way to ensure business health.
Murray Hill
Milford Business Association
What has been the greatest accomplishment for business in your area over the last year?
Getting the WOW factor back into the Milford community, by running innovative market days, promotions and especially getting the Village Square revamp completed including a Jeff Thompson sculpture and lighting.
Did the RWC have any affect – positive or negative – on North Shore businesses?
No significant effect – pretty much business as usual, although locals have been impressed by the international flags the association put up along all the verandas and many stores did rugby-themed window displays, which has created a festive atmosphere in Milford.
What challenges are businesses facing in the current economic climate?
The tough economic conditions, almost weekly sales by major retailers and on-line shopping are challenges in Milford and we have to counter that with the uniqueness of many of our specialty businesses and by providing great customer service that is lacking in many major chains.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
There is definitely opportunity for growth. We are soon to launch our new website, courtesy of Benefitz (publisher of CHANNEL magazine), which will give many of our businesses a better on-line profile and we have got some unique promotions coming up in the next year that will have people noticing Milford more.
Eddie de Heer
President - Devonport Business Association
What has been the greatest accomplishment for business in your area over the past year?
There have been three significant positive developments in Devonport over the past year.
Firstly the Victoria Theatre and Picture Palace (The Vic) has firmly established itself as an iconic entertainment destination. John Davies and his team are doing a tremendous job in bring the Vic back to its former glory and beyond. The top end of Victoria Road is now dynamic and alive with new retail businesses together - with quality cafes and bars being established around the Vic.
I personally remember, as a much younger man, my wife and I taking the train into the city, catching a ferry and walking up to the Vic to watch a movie and then have dinner at a local eatery. We lived in Papakura at the time so it was quite a trip. It is again worthwhile for anyone to take the trip, to visit the oldest cinema in New Zealand and enjoy the wonderful experience.
The second ‘accomplishment’ has been the very successful Navy Museum at Torpedo Bay. This magnificent enterprise is a real asset to Devonport, greater Auckland and the country as a whole. The award winning building is ideally located at the base of North Head, which has a strong military history. Visiting the museum should be on everyone’s ‘must do’ list.
The third positive accomplishment has been the significant re-development of the Devonport Wharf building. Council has recognised the significant importance of the wharf, as the key gateway to the North Shore, and has taken measures to address the outstanding maintenance and functional issues. The wharf is now set to deliver stage two of its re-development, which will see the function and use aligned with its role as a key transport hub, while taking full advantage of its truly amazing location.
Did the RWC have any affect – positive or negative – on Devonport businesses?
Both. Positive in so far as a lot of work has been done in and around Devonport to prepare it for the RWC visitors. The catalyst for the wharf upgrade was undoubtedly the RWC and it has brought the state of the wharf to the Council’s attention, which is a good thing. Devonport is looking fantastic with flowers, art and a general smarten up really enhancing the main business and shopping district.
On the other hand, I am unsure where the projected 95,000 visitors have gone, but it has not been to Devonport. There has been a lift in visitor numbers but this has not resulted in better retail sales. The bars and cafes were busier but the ones that did well were the ones who prepared themselves and marketed well ahead of time.
What challenges are businesses facing in the current economic climate?
Devonport is in good shape considering that the country is still firmly in the grips of the global economic down turn. Quality vacant retail space in the Main Street is still very difficult to find with empty shops being quickly snapped up. There remains a stable selection of New Zealand owned independent shops that offer unique quality products that one will not find in the large malls. Devonport is the perfect mix of quality shops, set in historic Victorian and Edwardian buildings, and it is surrounded by some of the most magnificent natural beauty in New Zealand.
Commercial office space has taken a bit of a hit with historically high vacancy rates. There has been a reversal of late with most quality space now being taken.
Businesses are beginning to recognise that Devonport is in fact a wonderful place from which to establish their premises. Free parking, easy access to the CBD by way of a quick 10 minute ferry ride to or from the heart of the city, rents significantly below city prices and a wonderful work environment - make Devonport the ideal location for small to medium sized businesses. There is currently a strong representation of creative and I.T. businesses within Devonport, together with professional services, whose client base includes those in the city centre. The Spanish Consulate is based in Devonport and it has found that it is the ideal location for them to represent the interests and people of Spain in Auckland.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
Growth is definitely on the horizon. The recently released Auckland Council - Draft City Centre Master Plan has identified Devonport as being one of the five key fringe villages around the city’s core. The other villages being Ponsonby, Newton, Newmarket, and Parnell. Devonport is now firmly on the agenda of Auckland Council and we can expect to see significant developments, with regard to infrastructure upgrades and waterfront development. Already $10 million is earmarked for the Marine Square and wharf building upgrade, with the action plan putting the works in the ‘Do Now’ category. Improved public transport, upgraded broadband infrastructure, and a progressive and supportive Local Board will enhance Devonport, as a preferred visitor as well as business destination. Devonport is currently Auckland’s 4th most visited destination. This will only increase in years to come.
Another very significant part of Devonport’s future success lies in its strong and dynamic arts culture. Long recognised for fostering a diverse representation in all the arts, from multimedia, to music, literature to creative expression, Devonport is poised to become the ‘Urban Arts Village’ of New Zealand. Through the sterling work of Linda Blinko and her team at The Depot Art Space, the Urban Arts Village of Devonport is becoming a reality. Anyone in Devonport during Art Week would have been immersed in the wonderful world of the Arts and will have been captured by a magnificent sense that Devonport is the artistic heart of Auckland.
Janine Brinsdon
North Harbour Business Association
What has been the greatest accomplishment for business in your area over the last year?
The greatest accomplishment for many of our businesses in the last 12 months has been their ability to retain funding relationships, retain market share and where appropriate, manage the impact of international currency fluctuations.
Those facing increased competition within the domestic or international markets have been forced to look at improved business efficiency elements - streamlining of processes to increase productivity across the board.
Did the RWC have any affect – positive or negative – on North Shore businesses?
IRB Rugby World Cup did increase the profile of the region. However based on our research, most of the publicity and contacts made were not of an opportunistic nature – rather they were the output of established and well worked relationships – onshore and offshore. The RWC was the catalyst for a face-to-face meeting.
What challenges are businesses facing in the current economic climate?
The challenges faced by businesses in the current economic climate reflect similar issues. The ability to maintain lines of credit supported by an effective foreign exchange strategy is critical - effective hedging will provide that all important operating margin.
Attracting additional funds is not so much the issue as banks have money to lend, providing businesses can satisfy the lender regarding overall security and can demonstrate through a sound business plan a solid future income stream. Business Plan elements such established supplier base relationships, structured working partnerships with the businesses clients and control of the cost of operations are under increased scrutiny.
Is there opportunity for growth in 2012 or are businesses still focused on surviving?
For many of our North Harbour businesses, their focus throughout 2012 will be on survival and the retention of key relationships. Export opportunities are key for many companies looking to grow, leveraging off the advantage against the even higher Australian dollar and maximising the opportunities made possible through the CER agreement.
The forthcoming election will be closely monitored by those looking for support – for example through reduction in bureaucracy, R&D or business capability funding, or to support increased human resources.
North Harbour Business Association will continue to drive economic development within our BID area by advocating for resources, which increase business efficiency to ensure the potential of this region is achieved.
