Christchurch rebuild boosting confidence
(16 April 2013 – New Zealand) A wave of confidence around the Christchurch rebuild is spreading to small firms across the South Island and construction firms nationwide, according to a new survey.
The quarterly survey showed confidence among Canterbury’s small businesses continues its steady rise and a step-up in reconstruction has helped drive business expectations in the rest of the South Island to their highest level since before the global financial crisis.
Construction lifted further as the most upbeat sector nationally, with confidence among small firms in residential construction surging to a 13-year high in March. Overall small businesses are keener to invest than at any time since 2005.
"Confidence in Canterbury has grown steadily for a year and is likely to rise further as the rebuild gains momentum," the source commented.
"But the good news doesn’t stop there. The boost to business prospects is now spreading to small firms across the South Island and beyond."
"What happens in Christchurch matters for New Zealand. Canterbury makes up half of the South Island economy and 12 percent of national GDP."
"The rebuild is too big for local firms alone - it spells opportunities for builders and other small firms way beyond Canterbury and this is amplified by the property upturn in Auckland and other regions," the source added.
"These trends are encouraging; what’s good for small businesses is good for New Zealand. Small firms account for 90 percent of our businesses and employ nearly one in three Kiwis. But challenges remain."
"Low turnover is still the biggest headache for small business owners, further underlining the importance of expert support and sound business planning," the source said.
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