Hutt Valley Chamber of Commerce
Sponsored by Red Hot Business Coaching
Business Confidence Survey – March 2015 Report
Executive Summary
The Hutt Valley Chamber of Commerce, sponsored by Red Hot Business Coaching, released its inaugural Business
Confidence Survey in March 2015. Going forward, a business confidence survey will be released on a quarterly basis.
The survey sought the business community’s views on the current national business situation, compared to
individual business owner’s situations. A total of 234 participants completed the survey.
Based on this survey, respondents generally feel as though New Zealand’s business outlook is steady, or set to
improve over the coming months, with a net 39.3% of respondents saying they expected the New Zealand economy
to improve in the next 6 months. In relation to their own personal business outlook, a net 53.9% of respondents said
they expected their own business situation to improve over the next 6 months.
It is of interest that this trend is reflecting the fact that respondents feel more positive over their own businesses,
compared to the national outlook.
Respondents have pointed to key limitations impacting on their own business expansion. The largest concern is a
lack of demand for the business’ activity, as well as a lack of financial capacity and labour shortages. Increased
market competition is also proving a barrier to some businesses.
Respondents have had steady full time and part-time numbers over the last three months, and intend to increase
both full-time and part-time capacity over the next three months.
Respondents are optimistic about future sales, exports and profitability, with large increases expected in all of these
areas over the coming three months, compared to the three months just gone. In particular, a net 29.7% of
respondents expect their business earning to increase in the next three months, with 46.1% expecting an
improvement in earnings, and just 16.3% expecting earnings to be worse.
Results
Business Sector
The chart below gives an indication of the business sectors.
Size of business
New Zealand’s business situation
Participants were asked their expectations on the business situation in New Zealand in the next six months.
Personal business situation
Businesses were asked how they expect their own business situation to be in the next six months.
Personal workload
Businesses were asked how they expected their personal workloads to change in the next six months
Skilled labour
Businesses were asked about difficulty in finding skilled and unskilled labour, compared to three months ago.
Business expansion limitations
Businesses were asked which single factor is most limiting the ability to expand activities. Of the ‘other’ category
below, the key responses were increased market competition, lack of resources, and limiting policy/legal regulations.
Interest rates on loans
Businesses were asked how they expect interest rates on loans to change over the coming 12 months.
Business investment
Businesses were asked whether their investment in building, or plant machinery would change over the next 12
months.
Three month comparison
Businesses were asked to report on their experience in relation to the following matters, over the past three
months, and then provide an expectation for the next three months.
Number of full-time employees
Number of part-time employees
Total hours worked
Labour turnover
Average costs
Average selling prices
Profitability
Sales in New Zealand
Export sales