MYOB’s latest survey of New Zealand’s medium-sized firms finds resilience under strain: while nearly half report revenue growth, one in five expect a downturn in the year ahead.
46% reported revenue growth compared with last year, while 30% held steady of the more than 500 business leaders surveyed.
MYOB chief executive Paul Robson said firms are working hard to adapt. “As the slower-than-anticipated economic recovery generates mixed performance and sentiment in the market, leaders of New Zealand’s medium-sized businesses are balancing their operations with the challenge of these conditions, the cost of finance and falling consumer confidence.”
51% expect revenue growth for the next 12 months, with 30% forecasting stability and 18% bracing for declines. Manufacturers are the most upbeat, with nearly two-thirds reporting a strong pipeline of work. 37% also see demand holding up in construction and trades.
Robson noted, “That said, there are bright spots coming through that indicate gradual growth will continue, particularly in industries that have been hit the hardest.”
Leaders ranked financial stability (44%), shipping and costs (43%), and cargo disruptions (41%) as their biggest risks. Geopolitical tensions and foreign exchange fluctuations were each flagged by a third of respondents.
Businesses are renegotiating supply contracts to manage these pressures, turning to local suppliers (34%), and exploring new overseas partnerships. Nearly a quarter are prioritising growth in domestic markets over exports.
“With a pragmatic eye on global risks, an openness to local opportunities, and a willingness to embrace new technology, New Zealand’s mid-sized businesses are showing that they have both the resilience and ambition to not just withstand challenges, but to shape their own path to growth,” Robson stated.