Hawkes Bay - Where Business is a Pleasure
By Patricia Moore, NZ Business.
Hawke's Bay is not only an exceptionally pleasant place to run a business; it also punches way above its weight for economic growth.
Talk business with the people doing the business in Hawke's Bay and the mood is upbeat. It's a great place to live and work, and it would appear the 'L' word is the key. Napier's mayor Barbara Arnott says it in triplicate: "Lifestyle, lifestyle, lifestyle!"
And indeed promotion for the region relies heavily on lifestyle opportunities. 'The Bay' offers 'one of the best lifestyle choices in New Zealand', has 'a lifestyle unmatched in New Zealand with a near perfect climate', and provides 'excellent opportunities for both business and pleasure'.
Too good to be true? Not at all says Ron Massey, economic development manager for the Napier City Council, who lists the pluses that make for happy business owners in Hawke's Bay. "Climate and lifestyle sit at the top. Then there's the ease of transport – we're not a vast area and have no traffic flow issues. There's good rail and a great port with easy road access offering efficiency at a lower cost."
Massey also cites staff retention which stems from the lifestyle, access to raw materials, and the region's coastal location (or easy access to it) as more good reasons for businesses to look seriously as operating in Hawke's Bay. "In many ways it's a niche economy," says Massey. "Whilst we rely on the land primarily, we no longer have large dominant employers like the Tomoana and Whakatu meatworks and Rothmans, who in their day employed an average of a thousand people each. They're gone and our 'less-than-five-employee' businesses are up above 85 percent [of all businesses]."
Massey notes that start-ups through his department (covering just Napier and Hastings) are around 50 a year. "We by no means facilitate them all, but from where I sit the region remains on a boom," he says.
Encouraging growth
The folk in Hawke's Bay are not relying on the region's natural attractions to attract business and grow the area's economy. Barbara Arnott, who owned and operated an educational consultancy company in Napier for 12 years before donning the mayoral robes, says the region is doing everything it can to encourage business growth. "Across the board the region is working hard on many initiatives to encourage new start-ups and growth." And, she says, a growing number of these demonstrate it's possible to enjoy a successful business and a great lifestyle without having to live in a more densely populated and stressful environment. "We've seen a growing incidence of businesses working smartly and using technology to run a successful business here, market to the world and enjoy a family-first lifestyle. This is not a new phenomenon, but a growing one. Hawke's Bay business culture allows people to use their options," says Arnott.
Hawke's Bay Inc is responsible for developing the region's business, tourism and economic potential - and the days when The Bay was regarded as the fruit and sheep capital of New Zealand are long gone. The region is now home to a diverse range of businesses, many contributing significant export dollars to the country's economy, and currently sits around ninth (of 14) in the best performing region stakes in terms of gross compound economic growth over the past 16 years.
But Hawke's Bay Inc aims to be even higher on the regional ladder. Jenny Brown, who leads the business development team, says they work with any business that wants to grow and can demonstrate they have the opportunity, capacity and ambition to so do.
"As the regional agent for Technology New Zealand, we also focus on innovation. And while industries based around agriculture, horticulture and viticulture obviously underpin the region's economy we have some incredibly smart companies in engineering, software and wood."
Hawke's Bay Inc is also the portal to information for businesses considering relocating to the Bay, says Brown. "We have a tremendous relationship with our stakeholders in the councils in seeking suitable locations for relocating businesses." And she says there are a number of training resources available to support any skills development.
Hawke's Bay start-ups are assisted through Business Edge. "Through this initiative we link them into all the support available throughout the region from start-up courses and NZTE Enterprise Training programmes to export hand-holding through the HB Exporters Club. There is also the Food Hawke's Bay and Chamber of Commerce business associations."
Like Business Edge, the redevelopment of the regional website
www.investhawkesbay.com is aimed at helping local businesses. Brown says its four distinct themes (Live in Hawke's Bay, Work in Hawke's Bay, Business in Hawke's Bay and Opportunities in Hawke's Bay) also aim to attract inward investment from within New Zealand and internationally."
Tourism boom
Hawke's Bay is also riding high as a destination for kiwis and overseas visitors.
"The conference market is big here and rapidly growing," says Ron Massey. "Tourism is generally big for us. We are no longer a 'best kept secret' with high growth annually."
Jenny Brown sees tourism as an essential for The Bay. "The Hawke's Bay Wine Country brand has been developed to promote all things associated with the wine country theme – wine, food, lifestyle and climate."
The region is taking full advantage of the brand in promotions locally, nationally and internationally. "The region's Mediterranean-style climate, attractive landscape and internationally famous architecture (Napier is touted as 'the world's Art Deco capital') have contributed to turning tourism into a Top 10 industry in Hawke's Bay, with earnings exceeding $390 million annually and with 2.2 million visitors in 2005."
But business in Hawke's Bay is not all wine and roses. Skills shortages – a national problem – are also being addressed. "We attend the New Zealand Opportunities Expo in London and recruit some 50 skilled migrants annually."