Business is booming with a rosy future in Horowhenua
Business is booming in Horowhenua and the future looks rosy, but the challenge will be how to manage growth.
At last week’s Electra Business After 5 meeting, a number of invited Levin business owners spoke about the growth each was experiencing, including Marty Jarrett, owner/managing director of Marty’s Panel and Paint, who said good growth over the last few years was due to a combination of “hard work and luck being in the right place at the right time”.
The expressway construction had had a huge impact, providing higher numbers of industry vehicles, as well as increased work through the insurance industry and a contract to rebrand Wellington buses. The company had to increase its workshop area by 250sqm to accommodate the growing business.
John Olifent, co-owner of Cordall which produces cord, braid, tape and elastic, bought the business just over six years ago. Steady, year-on-year managed growth had increased sales almost three times while retaining two staff members.
Crighton ITM Levin managing director Euan Crighton said it had been challenging keeping the sawmill going during a time when many others in the country closed. They were currently cutting 100m3 of wood daily and hoping to double output in the future. Approximately 30 per cent of its sawmill output supplied its three ITM stores, the remainder outside its operations. About 115 staff were employed in its Levin business.
Surveyor and property developer Roger Truebridge said its Waitarere Rise development, which started in 2008, had sold 75 lots, 25 in the last 18 months, and the next stage to develop up to 300 lots had started.
“Values are slowly coming back up. They are about 70 per cent of pre- Global Financial Crisis. We’re not seeing people rushing in to make a big buck. It’s more about lifestyle and personal interest, not speculators.”
Property Brokers sales consultant Murray Doreen said 51 residential houses had sold last month within Levin, all well above rateable value. Eleven lifestyle blocks in Levin had also sold. The average length of time from listing to sale was 25 days.
“People are buying off the plan now, buying anything just to buy in Levin,” he said.
Shaun Tyson, senior partner BNZ Palmerston North Partners Centre said commercially, Horowhenua was strong across all sectors, and its banking teams could not keep up with residential lending.
“It’s increasingly common to see parents use their equity to help their children get on the property ladder,” he said.
Chairperson Cam Lewis said the purpose of inviting speakers to the meeting was to tell the stories behind the numbers.
“Horowhenua has an economic development opportunity. There is a rosy future ahead if you get it right. Sustainability is an overused word but we don’t want ridiculous growth now, we want it staged.”
Housing affordability was vital to maintain an established workforce and the Board’s key focus for council is to ensure it releases enough land to meet demand and avoid prices going through the roof, Mr Lewis said. He believes job opportunities will open up across a number of sectors in the coming years.
“Horowhenua already punches above its weight around some of its call centres. No one can really compete with the Horowhenua on our stats for [low] staff turnover.”
A number of Horowhenua family businesses were at the point where they needed small management teams to operate, he said.
“Low income, unskilled has been the work on offer in Horowhenua for a long time but I think that’s going to change. I would like to think we’ll see good wage growth.” He thought industries that use relatively unskilled people could find it harder in the future to find employees and would need to find innovative solutions to engage and employ staff.
“All employers need to be thinking about what their workforce will look like in the future. It’s going to change, it’s just the evolution of their businesses.”
Mr Lewis said they hoped to share more businesses success stories.
“We’ve got so many more inspiring stories. There’s nothing like being proud of what you’ve got in your backyard.”