Canterbury businesses have faced a turbulent five years, battling what Leeann Watson, Chief Executive of Business Canterbury, has described as an “elastic band economy.”
From the global pandemic to disrupted supply chains and labour market shortages, these challenges have tested the resilience of local businesses, pushing many to their limits.
“Businesses have been navigating an elastic band economy over the last five years, dealing with a global pandemic, supply chain issues, unprecedented labour market constraints, and then crippling inflation and interest rate pressure which also caused consumer confidence and demand to plummet,” Watson said.
Renewed Confidence in the Region
Canterbury businesses are finding reasons for optimism, as signs of improvement emerge. According to Business Canterbury’s December confidence survey, a net 57% of businesses expect stronger financial results in the near future, marking the highest level of optimism since mid-2022.
“The last six months have seen a turnaround in business confidence, with many looking ahead at 2025 with the hope that it will be a better year, despite challenges remaining with cashflow and demand,” Watson explained.
This growing optimism is further supported by the government’s focus on economic growth, with Watson emphasising the importance of policies that support business recovery. “Local businesses have been calling for policies that help the economy regain momentum, allowing them to grow with confidence,” she said.
Key Policy Reforms Highlighted in PM’s Speech
Canterbury businesses are hopeful after the Prime Minister’s speech, which addressed several policy areas that have been top priorities for the region, including health and safety regulations, the Holidays Act, and procurement rules.
The health and safety reform, which is a major concern for many businesses, was especially welcomed. Watson highlighted that 42% of businesses have found the current framework to be poorly balanced between risk, cost, and productivity.
“The Prime Minister confirmed today that the government will be moving forward with health and safety reform—a step businesses will welcome,” Watson said.
Holidays Act Overhaul
Another significant concern for businesses is the Holidays Act, which Watson described as “a handbrake for businesses, often monopolising time and causing stress for small businesses and those with a predominantly casual or part-time workforce.” She emphasised that simplifying this process would reduce administrative burdens, particularly for small businesses already stretched thin.
Procurement Rules and Innovation
Changes to procurement rules were also highlighted as a key growth opportunity. Watson pointed out that 39% of businesses avoid tendering for public contracts due to the complexity of the process.
“Even changes to procurement rules could unlock significant growth opportunities—with many commenting that the way the system is set up stifles innovation and only nods to prioritising New Zealand businesses,” she said.
Attracting Foreign Investment to Drive Expansion
Beyond regulatory reforms, the Prime Minister’s vision includes initiatives to attract foreign investment, a move that Business Canterbury sees as critical for long-term growth. Watson highlighted the importance of access to capital for businesses seeking to expand onto the global stage.
“Access to capital has long been a barrier to many New Zealand businesses looking to grow onto the world stage,” she said.
Canterbury’s strengths in high-tech industries, including aerospace, food and fibre tech, and health tech, make it well-positioned to benefit from the proposed creation of a dedicated foreign investment body. Watson described this initiative as a potential turning point for the region.
“With Christchurch and Canterbury now being a hub for aerospace, food and fibre tech, health tech, and high-tech services, the announcement of a dedicated body for attracting and facilitating foreign investment could be a game-changer for our region,” she said.
Collaboration and Optimism for the Future
Looking ahead, Business Canterbury is prepared to collaborate with the government to implement the proposed reforms and ensure they translate into tangible benefits for the business community. Watson expressed confidence in the government’s commitment to fostering economic growth and innovation.
“With ‘nothing off the table,’ Business Canterbury looks forward to continuing to work with government on policies that enable an environment for innovation, productivity, and sustainable growth,” she concluded.