Key action to lift business confidence & performance – focus on skills

Despite a modest net lift in confidence in the general business environment, Auckland businesses confidence in their own situation and prospects over the next six months remains stalled on what it has been for the past 12 months.

These are key messages from a survey of just under 1000 business respondents undertaken electronically by the Auckland Chamber of Commerce this week.

Asked to look ahead at the general business environment for the next six months, a net 22% of respondents believe the general situation will improve over the next six months compared to the 14% of this view last November and 26% in August.

In respect of how respondents see their own business situation over the next six months, 52% predict they will improve, the same as last November and compared with 53% of this view in August and May, and the 49% in February 2011.

Among other findings 23% of businesses are expecting it to be harder to find skills in the next three months, up from the 20% of this view in the November and August surveys. On the positive side 30% of respondents are expecting interest rates to rise over the next 12 months compared to 46% of this view last November and the 54% last August.

The issue most affecting growth is demand, but there has been a lift in those saying finance especially among larger businesses, with a number commenting that they need positive support to grow.

Reflecting the aspiration of business to manage opportunities to grow, the survey shows a rise in expectations over the next three months to recruit more full time employees, work longer hours total hours, lift selling prices profits and sales in New Zealand with export sales expectations up slightly.

Commenting, Chamber chief executive Michael Barnett says that putting the findings together, especially the improved expectations for the next three months, a strong case can be made in the period ahead for initiatives that focus on increasing the availability of skilled staff, and to invest in recruitment and training packages.

“We need an action plan to recruit more skilled staff so employers can retain good staff for the period ahead.”

Now that we have moved past the Rugby World Cup and are looking ahead to exploit opportunities, employers will put their growth prospects at risk unless we start doing something to lift the overall skills levels as a key strategy to innovate and achieve growth plans, suggested Mr Barnett.