Whanganui And Partners

Business Whanganui Newsletter April 2016

Business Whanganui Newsletter

April, 2016

Logo for the Top7 Intelligent Community Forum
Welcome to the April edition of our newsletter. (Sometimes a bit confusing one does understand but this is the April edition even though it is now early May, the reason for this is that we report at the end of April on statistics we have gathered in March. We do try to get this publication out as close as we can to the end of the month but sometimes unforeseen circumstances cause delays.) 

Whanganui’s economy continues to track steady to strong we have a number of events all worth attending this month check them out.

To use the navigation aids please use the highlighted red areas to navigate to different sections of the newsletter and use the links  ” (Top)” to get back to the top of this newsletter.

Your feedback is important to us please follow this link and let us know what you think about this newsletter it is important to us that we provide a useful tool for our business community.

Business Matters

  • Treasury reports recent data indicates the economy experienced reasonable growth over the March quarter, although there are hints the pace of growth may ease in the current quarter.
  • NZ property market -9,527 dwellings sold in New Zealand in March 2016, up 30.7% on February and up 8.2% on March 2015. This is the highest number of sales in March since 2007.
  • Retail card sales for New Zealand still in a growth phase for the same period last year.
  • New Vehicle  sales in New Zealand have continued to grow and in recent months still a very health indication of business confidence.
  • Our traffic light system gives a snapshot of the current economy. In March the trend has been slightly weaker than in February but remained stable with growth still the dominant at a slower rate.
  • Whanganui’s economy:- very encouraging house sales volumes with a 58% growth in sales volumes sales of new vehicles  still picking up , building consents  have remained steady to. Electronic Card sales were still buoyant. The number of bed nights has been down on a month on month basis but still the 12 month figure is up on last year we attribute this in part to the recovery from the severe weather event of June 2015 amongst other factors.
  • Tender Notifications and expressions interest
    • (EOI)Contract No.1661 – Heads Road Swale Project
      The Heads Road Swale Project has been initiated due to the recent flooding events that have occurred in this area. The swale will provide storage for any events up to the 10% AEP event and an overland flow path for storm water to flow during unusually large storm events.
    • (EOI)Contract No.1720 – Nixon Street Wastewater Renewal
      A 930m length of wastewater pipe ranging from 300mm – 375mm is in need of replacement for the length of Nixon Street. This pipe is up to 6.5m deep and has heavy infiltration from the groundwater conditions.

Happening in Whanganui…

  • UCOL, Whanganui and Partners and Chamber of Commerce Business Forum present
    David Cattly on ASEAN countries and the business opportunities for Whanganui join us at UCOL on 31 May between 12:00 and 1:00 see more detail
  • Join experts in market research and planning, FORWARD Insight & Strategy and the Ministry of Business, Innovation and Employment (MBIE) for a free four-hour interactive workshop for tourism operators in your region, and tap into the growing value of the China visitor market.
  • The IRD will be presenting a number of seminars about Starting a business as well as GST workshops , if you know someone who is starting a business or you would like a refresher then this is well worth attending.
    These seminars are free of charge you just need to book your place.
  • Community Education is due to start term 2 early May – have a look through their timetable to see what is on offer.
  • If you are interested in more detail or would like a copy of this newsletter as a PDF file or any suggestions/additions please fill out our survey.

Please remember to join  us on our Whanganui and Partners Facebook page to keep up with what is happening on a regular basis we like to be liked as well!

Chris Heywood 

Source WDC Mar 16
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New Zealand Economy

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Executive Summary

  • Recent data indicates the economy experienced reasonable growth over the March quarter, although there are hints the pace of growth may ease in the current quarter
    • Consumer price inflation remains low, while the housing market has picked up again
    • International economic data were generally softer in April and the IMF downgraded its global growth forecasts.
    Data released in the month indicate the economy experienced reasonable growth in the March quarter, although there were hints of a slower pace of growth in the current quarter. The number of businesses reporting increased trading activity in the March quarter was steady, but business confidence waned and fewer businesses expect activity to rise in the current quarter.
    Indicators of retail spending growth remained solid although consumer confidence eased a little over the quarter, which might indicate a slower pace of household consumption growth in coming quarters. On the other hand, the resurgent housing market is likely to support consumer spending as household wealth rises. Net migration and tourist inflows continued to rise.

Read the full report here….
source: Treasury

NZ House sales (Top)
House price records smashed across New Zealand as ‘Halo Effect’ grows .

Summary

  • 9,527 dwellings sold in New Zealand in March 2016, up 30.7% on February and up 8.2% on March 2015. This is the highest number of sales in March since 2007.
  • On a seasonally adjusted basis the number of dwellings sold rose by 5.5% compared to February
  • National median price of $495,000, up $20,000 (+4.2%) on March 2015 and up 10.0% on February
  • New record national median prices across New Zealand, New Zealand excluding Auckland, Auckland, Waikato/Bay of Plenty, Wellington, Nelson/Marlborough, Canterbury/Westland and Central Otago Lakes
  • A 27% rise in the number of sales over $1 million between March 2016 and March 2015 — from 1,023 to 1,301
  • 20,180 dwellings sold by auction in the 12 months to March 2016, representing 22.0% of all sales, an increase of 38% in the number sold by auction in the 12 months to March 2015
  • Excluding the impact of the Auckland region, the national median price rose $35,000 to $385,000 compared to March 2015.

Read the Full report here…
source REINZ

NZ Retail Card Spend (Top)
The slower growth in retail card spend continued in March with the apparel and furniture and flooring sectors still under pressure. Fuel sales have remained in negative territory which continues to significantly contribute to the current lower inflation rates we have been experiencing.
Top Categories were takeaways, bars cafes and restaurants and accommodation which is a consistent trend.

Source Marketview

NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued to grow and in recent months the 12 month moving average growth has however continued to increased at a slower rate. In March 2015 a total of 7992 new cars were sold and in March 2016 the figure was once again up to 8 191 a small increase of 0.1%.  The slowing growth since October has continued.

Source MIA


Local Economy

House sales have lead the way in the local economy with yet again good sales recorded once again the local indicators we monitor are still showing positive growth which is good for Whanganui.

Whanganui and Region House sales (Top)
Sales volumes rose 33% compared to March 2015, with sales rising 58% in Wanganui and 40% in Manawatu Country and 30% in Levin. Compared to February sales volumes rose 14%, with sales rising 33% in Levin, 12% in Feilding and 8% in Palmerston North. March was the highest number of monthly sales since May 2007.
The median price across the region rose $7,000 (+3%) compared to March 2015 with prices rising 26% in Manawatu Country and 15% in Wanganui, but falling across the rest of the region. Compared to February the median price fell $5,000 (-2%), with prices rising 9% in Levin, 7% in Wanganui and 3% in Feilding.
The number of days to sell improved by 15 days in March, from 44 days in February to 29 days in March. The number of days to sell improved by 16 days compared to March 2015. Over the past 10 years the average number of days to sell during March for the region has been 43 days.
REINZ Chief Executive, Colleen Milne noted that, “Sales volumes continue to rise across the region with a 33% lift in the number of sales compared to March 2015 and the biggest increase in Wanganui. Price increases remain modest in comparison with other North Island regional markets, however, the availability of properties for sale remains a major problem for the region. The number of days to sell, at 29 days, is the lowest for March in 11 years.”

  

Source MREINZ


Whanganui Card Spend(Top)
The top category this month was Appliances with Bars cafes and restaurants still showing continued growth.

Top 3 sectors were

  1. Hardware and Homeware
  2. Bars cafes and restaurants
  3. Appliances

The bottom three sectors were

  1. Apparel (flat and affected by changed market dynamics)
  2. Fuel (Lower pump prices- which in effect is a positive)
  3. Furniture and Flooring
Card spend comparison by region monthly growth over previous year 

Source Market View
Card spend comparison by region month growth over previous year

 

Card spend comparison by region monthly growth over previous year dollar value of goods purchased March 2016.

Source Market View
Whanganui had better year on year electronic card sales than most of the TLA’s in the Manawatu Whanganui Region and still above the New Zealand Spend by 0.4%


Whanganui New Vehicle Sales (Top)
In January 2016 new vehicle sales were up on the previous year again with 62 new vehicles sold as opposed to 43 sold in the previous year pushing the moving average growth further up to 2.6% there are large fluctuations in sales from month to month but the overall trend is still in positive territory. The trend over the longer term still remains positive in spite of the erratic nature of sales in this sector.

 

Source MIA

Building Consents – Whanganui (Top)

In February 2016 there were 85 Building Consent applications. Based on a 12 month moving average we have again seen an improvement in number of consents passed with the value of consents indicating a stable trend in the region of $ 5million per month on average.

Source Wanganui District Council


Tourism (Top)

In 12 months to February 2016 guest nights were up by 3.3 % which still indicates growth for the 12 month period but still a decline in growth. In February we still see signs of recovery with accommodation levels at similar levels to February 2015 which is a positive trend. The flood event of June 2015 would have negatively impacted on these figures as well.

Source-Stats NZ

News



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ASEAN countries and the business opportunities for Whanganui

Speaker: David Catty

Date:  Tuesday 31 May 2016

Time:  Business forum (12 – 1pm), Brainstorming session (1 – 1:30pm)

Venue:  Room e.2.15, UCOL campus, 16 Rutland Street, Whanganui

RSVP by Friday 27 May 2016 to Tony Gan t.gan@ucol.ac.nz

Introducing ASEAN:
The Association of Southeast Asian Nations (ASEAN), comprising the ten S.E. Asian countries, Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei, Viet Nam, Lao, Myanmar, and Cambodia, covers a combined population of 625 million. Its economies are characterised by high levels of per capita income growth and rapidly emerging middle classes.

With exports and imports exceeding $13 billion p.a., ASEAN is New Zealand’s second biggest trading region after EU, which it is soon likely to overtake. Malaysia is our 6th biggest bilateral partner, Singapore 7th and Thailand 10th. Six ASEAN nations are in the top 21 trading partners. In addition, educational contacts and trade in services are increasing annually.

New Zealand enjoys friendly and positive relations throughout ASEAN, some sustained beyond 60 years. Joined as they are now in an Economic Community, the 10 nations present huge opportunities for New Zealanders to do good business.

Introducing David Catty:
David Catty was Executive Director of the ASEAN NZ Business Council between 2008 and 2015 and is now still contracted with them to provide strategic services in ASEAN itself and the Wellington region. He has previously been Executive Director of the NZ China Trade Association and National Director of the British NZ Trade Council.

David Catty’s “corporate” career encompassed successful management roles in FMCG, export marketing, particularly in Asia, seaports and logistics. He has made presentations and acted as panellist in many international Forums including the ASEAN Business Investment Summit, the World Chinese Economic Forum and the Seatrade International Cruise Conference and domestically at many international trade and logistic events. Within this career, he was elected as Fellow of the Chartered Institute of Transport and of the NZ Institute of Management.

RSVP by 27 May 2016 (Friday) to Tony Gan, t.gan@ucol.ac.nz

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Chinese independent tourists: a world of opportunity for your business
Join experts in market research and planning, FORWARD Insight & Strategy and the Ministry of Business, Innovation and Employment (MBIE) for a free four-hour interactive workshop for tourism operators in your region, and tap into the growing value of the China visitor market.

FORWARD was selected by MBIE to undertake a significant piece of research to understand more about Chinese Free & Independent Tourists (FITs). The research was designed with tourism operators in mind, and identifies practical, hands-on opportunities for you to increase the value you derive from this important visitor market. These opportunities exist, whether or not you already welcome Chinese visitors.
Whilst the research is primarily focused on Chinese FITs, many of the findings can also be applied to other visitor markets, both domestic and international.

During the free workshop, which will be tailored specifically to your region, you will find out about topics including:
·         Why Chinese visitors find ’our ordinary their extraordinary’
·         Why all Chinese FITs are not the same and the implications for your business
·         How you can develop and optimise your offer for Chinese FITs
·         The importance of telling Chinese FITs not just what you offer, but why they should choose you
·         How to build on Chinese interest in travelling to New Zealand all year round and discovering new areas of New Zealand
·         Effective digital marketing strategies for connecting with Chinese FITs.

You will get:
·         New practical information to help you make decisions
·         Planning frameworks and worksheets to apply to your business
·         An action plan with priorities
·         A chance to discuss opportunities with others and have your questions answered by our experts.
Find out more information on the NZCN Tourism website
Register online HERE to secure a place at this free workshop

Date: Tuesday 24 May 2016
Time: 9.00am to 1.00pm
Venue: Whanganui War Memorial Centre, Watt Street (Queen’s Park), Whanganui

Click HERE for the venue map

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Introduction to Business Seminars
GST Workshops
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The IRD will be presenting a number of seminars about Starting a business as well as GST workshops , if you know somone who is starting a business or you would like a refresher then this is well worth attending.
These seminars are free of charge you just need to book your place.

Introduction to business seminars

  • Working smarter with the IRD online services
  • business structures
  • income tax
  • expenses you can claim
  • good bookkeeping tips
  • GST and more
When:
  • 17 May 2016
  • 16 August 2016
  • 15 November 2016
GST Workshops
  • what is GST
  • GST registration
  • record keeping – cash book
  • basic adjustments
  • GST Filing
  • IRD online service
  • using IRD’s interactive Tool for business
When:
  • 21 June 2016
  • 20 September 2016
  • 29 November 2016
Where all workshops and seminars are held at :
CLAW Whanganui
76 Guyton Street
Whanganui

Booking is essential as there are limited spaces.

email: advisory.palmerstonnorth@ird.govt.nz
ph 0800 377 774
For further information visit their web site www.ird.govt.nz


Tender Notifications(Top)

Request for Expression of Interest (EOI)

Contract No.1661 – Heads Road Swale Project
The Heads Road Swale Project has been initiated due to the recent flooding events that have occurred in this area. The swale will provide storage for any events up to the 10% Annual Exceedence Probability event and an overland flowpath for stormwater to flow during unusually large storm events. The new infrastructure will also allow separation of properties in this area which is still connected to the combined system. This project will reduce the amount of stormwater entering the wastewater system, helping to reduce the frequency of spilling of the wastewater system during wet weather events, and will improve the stormwater level of service available to the Heads Road industrial area.
Whanganui District Council is inviting electronic Expressions of Interest (EOI) from suitably experienced contractors who can manage the workload described below and give priority to the work over the coming months.

The works required include, but are not limited to;

• 265m of 600mm pipe installed along the alignment of the new swale.
• 5 new manholes along this alignment.
• 5 new sumps to flow across Heads Road to the swale.
• 350m of swale to be installed at an average width of 5 metres, including the narrowing
of the road carriage way, and re-forming of the kerb and channel.
• The provision of 3 parking bays on the North side of Heads Road.
• The provision of a walkway/cycleway along the south side of Heads Road.
• The lowering of services in the proposed swale line to allow for excavation.
• Connection to a new chamber (provided by others) in order to allow drainage into the new twin 1350mm stormwater system on Gilberd St.
Following the EOI process, successfully shortlisted parties will be invited to tender.
The full tender document can be downloaded via Tender Link at www.tenderlink.com/whanganui
The Tender Link reference is: WANGDC-723062
If you are not already registered with Tender Link, please log on as per the above to do so.  It is free and easy to register.  For any Tender Link queries, please phone 0800 698 363.
Enquiries regarding any aspect of the tender document should be submitted in writing (e-mail is acceptable) to Whanganui District Council, marked for the attention of the Senior Stormwater Engineer, Kritzo Venter  at kritzo.venter@whanganui.govt.nz no later than three days before the tender closing date.
EOIs must be submitted via Tender Link at www.tenderlink.com/whanganui in an electronic file of PDF format, and identified as an EOI for this particular contract.
EOIs must be submitted no later than 4.00pm Friday, 13th May 2016.
For any further assistance, please contact the Tenders and Contracts Secretary, Lana Treen, atlana.treen@whanganui.govt.nz or on (06) 349 3105.

 

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Request for Expression of Interest (EOI)

Contract No.1720 – Nixon Street Wastewater Renewal
A 930m length of wastewater pipe ranging from 300mm – 375mm is in need of replacement for the length of Nixon Street. This pipe is up to 6.5m deep and has heavy infiltration from the groundwater conditions. This wastewater line is 106 years old and at points misaligned and damaged, therefore remote repairs to sections of the pipe is not plausible.
WDC is inviting electronic expressions of interest (EOI) from suitably experienced contractors and their design affiliates, for a detailed investigation, design and construction in order to provide a new wastewater line for the length of Nixon Street. We are specifically interested to hear from trenchless technology specialists.
The affected section of the reticulation can be summarised as follow:
• 930m of wastewater line ranging from 300 – 375mm.
• 18 manholes along the length of the line.
• Approximately 80 private connections.
• A series of rider sewers that collect a percentage of the laterals for private property.
The scope of work includes, but may not be limited to;
• Further investigation of the site to determine design solution.
• Detailed Design of the solution.
• Construction of the solution.
Following the EOI process, successfully shortlisted parties will be invited to tender.
The principal will supply a CCTV report as part of the invitation to tender, in order to give the tenderer a clear view of the pipeline in its current condition.   The form of contract for this contract will be NZS3916:2013.
The full copy of the request for Expression’s of Interest document is available online from Tender Link only at www.tenderlink.com/whanganui
Tender Link Reference: WANGDC-723311
If you are not already registered with Tender Link, please go to www.tenderlink.com/whanganui  to do so.  It is free and easy to register.  For any Tender Link queries, please phone 0800 698 363.
EOI’s must be submitted online via Tender Link at www.tenderlink.com/whanganui in an electronic file of PDF format, and identified as an EOI for this particular contract.
Enquiries regarding any aspect of the tender documents should be submitted in writing (e-mail is acceptable) to Whanganui District Council, marked for the attention of the Senior Wastewater Engineer, Arno Benadie, at arno.benadie@whanganui.govt.nz no later than three days before the tender closing date.
EOI’s must be submitted no later than 4.00pm Friday, 13th May 2016.
For any further assistance please contact the Tenders and Contracts Secretary, Lana Treen, atlana.treen@whanganui.govt.nz or on 06 349 3105.

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