A year that shifted from familiarity to uncertainty
OPINION: Businesses can clock off for Christmas in the knowledge that there is strong domestic and international demand for many of the goods and services New Zealand produces, resulting in a successful 2017.
Next year will be about building on gains made this year and navigating new domestic policy.
There has been a significant shift for BusinessNZ in 2017 – we began the year with a Government we knew well and had engaged with frequently for nine years.
From the business growth agenda to broader economic policy, and in areas such as trade, BusinessNZ helped shape many of the previous Government’s priorities when it came to business.
Where there were challenges for business relating to government policy, we knew how and when to engage to achieve positive outcomes.
That will continue into 2018, as the dust settles on the new Government’s first 100 days, and we find out what changes will be put into place and how they will affect business.
Business confidence has been strong during 2017, but has taken a hit recently. Some of the current lack of confidence can be attributed to the uncertainty that comes with a new Government.
With changes ahead, businesses need to be prepared and be well advised on how they will be affected by new policies, and how to engage with the new Government.
It is important that business networks are strong and the voice of business remains consistent in advocating for policies that help bring jobs to local communities.
It is important to remember we are a nation of small business – of the roughly 550,000 businesses in New Zealand only about 2500 have more than 100 employees.
Businesses and their owners need to understand that they aren’t alone when they have to make decisions.
The Business NZ family (EMA Northern, the Wellington Employers Chamber of Commerce, the Canterbury Employers Chamber of Commerce and the Otago Southland Employers Association) has a long history in providing assistance to businesses navigating change.
That includes advocating for policy that is good for business, jobs and communities; providing support in respect of human resources, training, health and safety, and exporting; matching businesses with the skills they need to grow; and networking to share approaches.
As always, where there are challenges, there are opportunities. Businesses that take advantage of those will diversify, and find themselves with access to new markets.
It is heartening to see the Government’s commitment to the CPTPPA, which will play a big role in the New Zealand economy. The trade agreement will genuinely benefit businesses, helping them grow, creating jobs and raising incomes.
Our exporters will have significantly improved access to markets in Japan, Mexico, Peru and Vietnam, among others.
When those opportunities present themselves to our exporters, we know they will seize them – and New Zealand’s place in the global market will continue to be important in 2018.
This rapidly changing world means businesses engaging with their customers in different ways to match changes in how customers purchase goods and services.
The solid performance of business in 2017 has its base in high commodity prices, evergrowing tourism numbers, and strong GDP.
The strength of these will be important in boosting incomes and bolstering the economy during a phase of transition.
Capital has been flowing into New Zealand, but what we need now is to get that better aligned with our productive sector.
As the new year dawns, we encourage businesses to take the best advantage of their opportunities, and learn best how to manage and mitigate risks and issues that come their way.
The solid performance of business in 2017 has its base in high commodity prices, ever-growing tourism numbers, and strong GDP.
❚ Kirk Hope is the chief executive of BusinessNZ.