Venture Taranaki Release December 2021 Business Survey Results

The results of the latest 6-monthly Business Survey by Venture Taranaki indicate many of the region’s businesses are feeling the strain of the COVID-19 pandemic. With a range of impacts noted from supply chain issues and cost of materials to vaccine pass requirements and price of fuel, this concern has translated into a deterioration in economic confidence across Taranaki compared to the results of the June 2021 survey.

Of the participants who completed the recent December 2021 survey, nearly half expect the general business situation in New Zealand to deteriorate (46%). This is a significant increase compared to the June 2021 survey, when 16% of respondents anticipated deterioration.

Respondents also expect the general business situation in Taranaki to deteriorate (35%), which again is an increase compared with 15% reported in the June survey. However, positively 60% of respondents expect the general business situation in Taranaki to remain the same or improve.

"Since our last survey 6-months ago, we are seeing a decrease in business confidence. This is not surprising as we’ve experienced a disruptive 6-months of the country in lockdowns, continued border closures, and the new COVID-19 Protection Framework introduced earlier this month. We acknowledge it has been a really trying time for our enterprise community," says Michelle Jordan Venture Taranaki GM Enterprise.

Responses for industry-specific outlook indicated 39% of respondents are expecting the business conditions in their industry to deteriorate, compared with 14% in June. However, respondents felt more optimistic about their own industry outlook as opposed to the national or regional economic outlook.

The 6-monthly survey has been undertaken by Venture Taranaki, the Regional Development Agency, since 1999. The results of this survey are of particular interest and indicate the current state of business confidence and key business indicators across the Taranaki region. The December survey included the usual questions and a special topic section on COVID-19 impacts, particularly the vaccine mandates and the COVID-19 Protection Framework, or traffic light system.

In the COVID-19 vaccine passes and mandates section of the survey, results show nearly a 50/50 split across the business community. Respondents were asked if the vaccine mandate and the vaccine pass system are the right things to do for businesses in Taranaki, with 53% indicating they agreed and 47% disagreeing.

When asked if businesses felt safer and better protected from COVID-19 with the vaccine pass requirement in place 48% of respondents agreed, with 52% of respondents disagreeing. Notably, 73% of businesses did indicate that they had completed a COVID-19 risk assessment or plan to do so. However, 41% of respondents felt they had not received enough official guidance about the vaccine requirements.

"It’s clear this has been an extremely challenging period for many of our businesses. While this survey was undertaken at the outset of the traffic light system, it’s important to acknowledge our business community’s need for clear, consistent information as we work our way through what is a very fluid and ever-changing landscape. Working and engaging with the business community to understand their needs and providing appropriate support is imperative", says Michelle.

"Ongoing skill shortages have also been a challenge for businesses, and this has impacted enterprises over the last 12 months", says Justine Gilliland, Venture Taranaki Chief Executive.

The implementation of the vaccine pass has added to businesses’ concerns with 45% indicating they are worried about losing staff or customers because of the vaccine requirements. In addition, businesses have identified (63%) there are roles that can only be fulfilled by a vaccinated person.

Over the next 6-months, respondents did indicate that they expected their employee numbers in their business to remain the same (53%) or increase (20%), with other respondents expecting a decrease (20%), and with 7% unsure.

Again, recruiting highly skilled or specialist workers was noted as particularly problematic, with examples provided that highlighted engineers, builders, tradespeople, hospitality, and designers. 57% of respondents conveyed they are experiencing skill shortages and/or difficulties recruiting appropriate staff.

"We continue to support the reduction of skills shortages across the region, working with partners like WITT, MSD and business directly to identify the gaps, forward plan and re-train, as well as promote nationally for those skills that we need," explains Justine. "These challenges are ongoing, and the region is working collectively to ensure the region can meet its talent needs as it moves forward."

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