Datacom’s latest Business Outlook Survey reveals business leaders’ concerns as they head into 2025. The survey, which included over 200 participants, found that economic uncertainty is the primary worry for 77% of respondents—an increase from just 13% the previous year.
There are signs of optimism regarding technological advancements. Datacom highlighted that 68% of respondents plan to increase their investment in technology, with a specific focus on generative AI and automation as vital growth opportunities.
“Technology is becoming increasingly important in organisational plans, with a focus on AI and automation as significant opportunities for growth,” Datacom managing director Justin Gray said.
However, there were persistent worries regarding the shortage of skilled workers (15%) and budget limitations (34%).
Staff retention and recruitment have fallen to fifth place in the ranking of priorities, down from third last year, with only 9% of respondents identifying it as a top priority for their organisation.
For Gray, “That’s also a sign of probably a pretty low growth environment, and expect if and when we get back to growth, I think staff and skills will rise up the ranks again as a challenge for business.”
Businesses are increasingly prioritising cybersecurity, with 35% reporting a significant cyberattack in the past year and 53% of larger firms experiencing such attacks.
The latest survey revealed a sense of disappointment in the government, with about 65% of respondents expressing approval, while 22% said they disapprove.
Last year’s survey of 200 business leaders showed strong confidence in the incoming government, with 71% of respondents expressing the belief that there would be increased opportunities for businesses to succeed under the new administration.
Companies with fewer than 200 employees expressed less confidence in the government’s performance to date, with 49% rating it as having done a good job, while 34% disagreed.
“Business leaders have not fully met their expectations from the government and the economy, but there is a sense of optimism looking forward,” Gray said.
Moreover, businesses are urging the government to place greater emphasis on the economy and enhance support for export opportunities. This increasing recognition makes exporting not only a “peripheral strategy for New Zealand businesses” but “a core pathway to long-term success.”