Business Whanganui Newsletter August 2015

Business Whanganui Newsletter

August, 2015

  
Hi

Welcome to the August edition of our monthly newsletter. Please use the highlighted red areas to navigate to different sections of the news letter and use the links  ” (Top)” to get back to the top of this newsletter.

Treasury has raised concerns that the New Zealand economy is performing below forecast for several reasons. However property sales have still been good  vehicle sales too have shown growth.
Please view our traffic light system for a snapshot of the current economy. In July the trend still continues to be stable.  With slight improvement in house sales volumes however sales of new vehicle trending flat, buildingconsents  have again shown moderate growth in numbers but values are down in line with reduction in larger projects. Electronic Card sales were buoyant showing a positive trend very similar to June. The tourism results  are still showing strong signs of recovery with sustained positive growth and a positive medium term outlook for the local economy.

UCOL are presenting another of their popular business forums the theme this month is “Growing the high-value, high quality food and beverage market” please book early for this as places are limited for more information and booking details here…

An invitation to attend Whanganui and Partners Q&A sessions join our sessions and have your say on the future of Economic Growth in Whanganui.

Please support Alan Anderson and give him your vote in the Pride of N.Z. awards

Get ready for New Zealand ShakeOut – 9:15am, 15 October 2015!

Free seminars on offer by the IRD are a great way to understand IRD business obligations if you know anyone who would benefit from these please pass this on as there is plenty of room for more to attend also the latest tenders on offer from the Wanganui District Council.

If you are interested in more detail or would like a copy of this newsletter as a PDF file or any suggestions/additions please let me know. 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 Jan 15
(Top)

New Zealand Economy

  • GDP growth in the June quarter is expected to be around 0.6%, lower than the BEFU forecast.
  • Annual growth in 2015 may fall to 2.0% as domestic demand softens.
  • Weakness in retail spending as employment growth declined points to softer private consumption growth in the June quarter than previously expected.
  • However, a buoyant housing market, elevated net migration gains and exchange rate depreciation are expected to continue to support growth.
  • Dairy prices remained low in August, pointing to further falls in the terms of trade.
  • Volatility in financial markets reflected concerns over China’s growth slowdown.

Key economic data released over August continue to point to a weaker growth outlook than forecast in the Budget Update (BEFU). Employment growth continued to slow as businesses reduced their demand for labour, while the labour force expanded solidly owing to population growth, together leading to a lift in the unemployment rate. Despite steady growth in labour incomes, weak retail trade data for the June quarter suggest that private consumption growth will be significantly lower than forecast in the BEFU.

Read more here..
source:Treasury
NZ House sales (Top)
  • Waikato / Bay of Plenty and Northland saw an increase in the median price of 3% in July 2015 compared to June
  • The Auckland median price has fallen in July 2015 by -2.65% compared to June. The median price in the regions has increased by 3.3% over the same period.
  • 8,121 dwellings sold in New Zealand in July 2015, up 37.8% on July 2014 and 9.4% on June
  • A national median price of $465,000, up $49,000 (11.8%) on July 2014 and $15,000 (3.3%) on June
  • A national median price (excluding Auckland) up $19,950 (6.0%) to $352,000 compared to July 2014 and $12,000 on June • A rise of 21% in Auckland’s median price from July 2014 to July 2015 — from $610,000 to $735,000 — although a fall of $20,000 compared to June
  • The highest level of July sales across New Zealand since 2005, and since 2003 for Northland, Auckland and Waikato/Bay of Plenty
  • A 130% rise in the number of sales over $1 million between July 2014 and July 2015 — from 395 to 909

There were 8,121 dwelling sales in July 2015, up 37.8% on July 2014 and 9.4% compared to June 2015.

The national median price was $465,000 for July, an increase of $49,000 or 11.8% on July 2014, and $15,000 or 3.3% from June. Excluding the impact of the Auckland region, the national median price rose $19, 950 compared to July 2014, to $352,000, and $12,000 (3.5%) compared to June.

Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says, “The volume of sales has been exceptionally strong for the middle of winter right across New Zealand, with very strong year-on-year sales growth in the top half of the North Island and Central Otago Lakes in particular. Backing this is strong anecdotal evidence of Aucklanders buying in these regions as owner occupiers and investment properties. Inventory continues to be a significant problem in Auckland, with less than 10 weeks supply available, and there is an emerging problem of available properties in Northland and Waikato/Bay of Plenty, with a 50% fall in inventory for Northland over the past 12 months and a fall of 60% in Waikato / Bay of Plenty.”

View Full Report here…
source REINZ

NZ Retail Card Spend (Top)

Retail card sales for New Zealand have shown improved growth over July for the same period last year the only exceptions being apparel, accommodation and appliances. Fuel sales still recorded a negative growth as fuel prices continue to fluctuate the trend is expected to normalise in the medium term.
Top Categories were takeaways, food retailing and accommodation.

Source Marketview

NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued to grow however since March 2015 have been growing at a slower rate than previous months there is indication that the new car market has plateaued. In July 2015 7,272 new vehicles were sold. Which is Down on June where 9,021 vehicles were sold and  up on the 7,071 new vehicles sold in July 2014. Growth was down on June at 0.2% from 0.5% over the previous 12 months  but still positive growth experienced.

Source MIA 

Local Economy

Wanganui and Region House sales (Top)

Sales volumes rose 16% compared to July 2014, rising 81% in Feilding, 56% in Levin and 21% in Manawatu Country. Compared to June sales volumes fell 15%, with rises of 41% in Feilding and 16% in Manawatu Country, but a fall of 24% in Palmerston North and other falls across the rest of the region.

The median price across the region rose $9,500 (+4%) compared to June 2014, with prices rising 8% in Palmerston North and 1% in Feilding and Wanganui. Compared to June the median price fell $1,750 (-1%), with prices rising 7% in Feilding and 5% in Palmerston North, but falling across the rest of the region.
The number of days to sell eased by five days compared to June, from 50 days in June to 55 days in July. Compared to July 2014 the number of days to sell improved by four days. Over the past 10 years the median number of days to sell across the Manawatu/Wanganui region in July has averaged 52 days.

REINZ Chief Executive, Colleen Milne, noted that, “Both first home buyers and investors are active in the market, but a shortage of inventory is hampering sales volumes. A number of properties are being sold under multiple offers, leaving many buyers unsatisfied.”
Graph Commentary The median price trend has improved from falling to easing, with the volume trend rising. The days to sell trend is also now rising. The overall trend for the region is now steady.


Source MREINZ

Wanganui Card Spend(Top)
The retail card spend in Wanganui was once again positive. The top 3 categories are possibly an indication of the flood event and associated activity. Wanganui was the 2nd top performing region yet again second only to Ruapehu which comes off a low base.
Overall the electronic card data is very positive.
Top 3 sectors were
  1. Bars cafes and restaurants
  2. Hardware and Homeware
  3. Takeaways

The bottom three sectors were

  1. Fuel (Lower pump prices)
  2. Apparel (flat and affected by changed market dynamics)
  3. Accommodation (not a always a good measure)

Card spend comparison by region monthly growth over previous year

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

The results for individual councils across the region were again mixed this month, with strongest Ruapehu again at 6.7% increase ahead of Wanganui which recorded a growth of 3.2% and Palmerston North at 2.1% increase. Tararua District declined at -0.3%.  Wanganui at a 3.2% increase was higher than the National growth  of 2.7%. Wanganui was the second top card spend region after Ruapehu when compared to the same period in 2014.
Source Market View
Wanganui New Vehicle Sales (Top)
In June new car sales were were once again down on the previous year with 61 Vehicles sold in July 2015 compared to 64 new vehicles sold in June 2014. Car sales continue to fluctuate . The overall trend however remains fairly flat tending down with a moderate decline in the 12 month moving average period.

Source MIA

Building Consents – Wanganui (Top)

In July there were 92 Building Consent applications. Based on a 12 month moving average we have yet again seen growth this month. We have seen a steady growth on a 12 month basis of consent applications since December 2014. The value of applications peaked in January 2015 and appears to have  now stabilised at a slightly higher rate than prior to this peak. In July 2015 the value of applications was $4,729,800 this figure is higher than July 2014 when applications were valued at $2,050,125. almost double the value.

Source Wanganui District Council

Tourism (Top)

June statistics are in and trending up.  For the month of June 2015 compared to June 2014 we saw a 10.3% increase in total guest nights – this is the largest increase in the North Island above both Taupo and Rotorua this is a very positive indicator considering the flood event occurred on the weekend of 19 June.
Source-Stats NZ

News


 (Top)
Business Forum

 

Date: 24 September 2015 (Thursday)

Time: 12 – 1pm

Venue: Room e.2.03, UCOL campus, 16 Rutland Street, Whanganui

Introducing the Speaker:

Mark Ward has worked with the NZ food and agricultural sectors for nearly 20 years, and has consulted to the Ministry for Primary Industries on growing high-value exports across the food value chain, and building capability to do so. Mark’s role is to develop and execute strategy in the primary industries and related sectors, including research and education. His current work includes helping to execute the Riddet Institute’s ‘All Call to Arms’ high-value food and beverage strategy with a specific regional focus on Marlborough, New Zealand’s centre for seafood (aquaculture) and wine production and export (www.mrc.org.nz).

Mark led the establishment of the national partnership FoodHQ, New Zealand’s gateway to food innovation, and is its foundation programme director (www.foodhq.com). He has also worked with Australian meat processors and horticulture companies on high-value products and processes, and with funders Meat & Livestock Australia and Horticulture Australia. His executive roles have included CEO of NZ Crop & Food Research, GM of Riddet Institute, GM Food & Health at AgResearch, and international marketing in the dairy industry in South Asia, Middle East and Eastern Europe.

RSVP by 21 September 2015 (Monday) to t.gan@ucol.ac.nz


ADULT LEARNERS WEEK –  He Tangata Mātauranga September 7 – 12, 2015
For more information please phone us on (06) 345 4717 or visit our websitewww.wanganuices.org.nz
.


An invitation to attend
Whanganui and Partners Q&A sessions

Join our sessions and have your say on the future of Economic Growth in Whanganui
 (Top)
This is the 2nd of Whanganui and Partners (W&P) Q&A sessions. These sessions will provide an opportunity for the business community to highlight any issues/concerns and raise ideas directly with Whanganui and Partners and Councillors.  There will also be updates from W&P boards.  We realise that your time is precious therefore we have organised this session over a lunch time.

Items we are planning to cover are;

• The New Economic Development Strategy
• Regional Growth Study
• Questions/Open “MIC”

Date – 6th October 2015
Time – 12 – 1pm
Venue – War Memorial Centre, Pioneer Room
Seats are limited so please RSVP by no later than Wednesday 30 September
Please RSVP to Suzanne Carrick Suzanne.Carrick@whanganuiandpartners.nz
DDI 06 349 3119

    

Allan Anderson

Allan Anderson has been nominated in the environmental category for his conservation work for the Bushy Park wildlife reserve, particularly…

 (Top)

Pride of New Zealand Awards – Environment: vote for our local representative

As many of you will be aware, local man Allan Anderson is a finalist in the Environment category of the Pride of New Zealand Awards to be held in Auckland on September 16.

In addition to the six categories there is a “TSB People’s Choice” in which we can vote for the person of our choice.

Voting is by email and you can only vote once as the count is based on unique email addresses.

The winner of this category receives a cheque for $10,000 to be donated to the charity of his or her choice. Obviously, if this turns out to be Allan, his preferred choice would be Bushy Park which has been his life’s passion.

Should you wish to vote for Allan go to this link:

http://prideofnzawards.co.nz/peopleschoice/

Scroll down to the photo of Allan and click on Vote For Allan Now.

The form comes up, fill in the three mandatory lines and click on Submit. It’s easy and takes less than a minute to do.

Please note that there is no benefit whatsoever for Allan but there would be a great boost for Bushy Park and our district if he were to receive the most votes.

Voting closes September 13 but don’t leave it till then! Your support would be really appreciated.

 (Top)

Get ready for New Zealand ShakeOut – 9:15am, 15 October 2015!

Thank you for choosing to participate in and promote New Zealand ShakeOut. You are making an important contribution to our aim of having 1.5 million people do an earthquake drill at 9:15am on 15 October, and helping New Zealanders be better prepared for an earthquake, wherever it occurs. We could not achieve our aim without businesses and individuals joining in, promoting New Zealand ShakeOut and being ambassadors for the campaign.
Register here…

Introduction to Business Seminars
GST Workshops  (Top)

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:
  • 15 September 2015
  • 17 November 2015
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:
  • 27 October 2015
Where all workshops and seminars are held at :
CLAW Whanganui
76 Guyton Street
WhanganuiBooking is essentialemail: advisory.palmerstonnorth@ird.govt.nz
ph 0800 377 774
For further information visit their web site www.ird.govt.nz

Tender Notifications(Top)

Contract 1598: Alexander Library Seismic Upgrade – Request for Tender
Wanganui District Council (WDC) has commenced a programme of seismic strengthening to many of its buildings.
The Alexander Library is the second building scheduled on which to commence these physical works.
The contract includes but is not restricted to:
1)  Seismic upgrade works: Additional foundation works – pilaster construction, wall ties, roof and ceiling bracing.
2)  Accessibility ramps.
3)  Weatherproofing.

The physical works contract has been scheduled to be undertaken in the period of November 2015 to April 2016.

WDC is currently seeking Tenders from suitably experienced and resourced contractors who are capable of undertaking these works.

This tender is advertised on www.lgtenders.co.nz where all the supporting tender documents can be found and downloaded.  Ref: LGOL-692100

Hard copies of the Tender documents can also be collected from the front desk of the Wanganui District Council, Municipal Office, 101 Guyton Street, Wanganui.

Tenders submissions for the Seismic Upgrade works close Monday 14th September at 4.00pm.

Please place your hard copy submissions in a sealed envelope in to the Tenders Box located at the ground floor reception area of the Wanganui District Council, Municipal Office, 101 Guyton Street, Wanganui.

If you require any further information please contact the Engineer to the Contract, Rick Grobecker, on 021 467 687 or 06 349 0001.

Request for Tender

Contract No. 1681: Retaining walls at Wairere Rd and Mt View Rd
Wanganui District Council are inviting tenders from suitably experienced contractors for the construction of two retaining walls and associated minor civil works at two sites within the urban area.
The scope of work includes, but is not limited to:
• Traffic Control
• Earthworks
• Steel soldier pile wall with precast panels
• Installation of tie back anchors
• Pavement works
• Handrails
• Streetlighting

Tender documents are available on the Local Government Tenders (LG Tenders) website only at www.lgtenders.co.nz ref: LGOL-694150.
Enquiries regarding any aspect of the contract documents should be submitted in writing (e-mail is acceptable) to Wanganui District Council, marked for the attention of the Development Engineer, Damien Wood, at damien.wood@wanganui.govt.nz  no later than three days before the tender closing date.
Tenders are to be submitted electronically via www.lgtenders.co.nz.
Tender submissions close at 4.00pm on Monday 21st September 2015.
For any further assistance, please contact the Tenders and Contracts Secretary, Lana Treen, at lana.treen@wanganui.govt.nz or on 06) 349 3105.