Latest news with #2025ShapingBusinessStudy
Techday NZ
13 hours ago
- Business
- Techday NZ
New Zealand business optimism surges as firms embrace AI gains
Business optimism among New Zealand companies has reached its highest level since 2021, with a significant proportion of leaders expecting revenue growth in the coming year, according to the latest research from 2degrees. The 2025 Shaping Business Study, carried out by insights and research agency Matter, surveyed over 500 business decision-makers across New Zealand between April and May 2025. Now in its sixth year, the study examines the central issues, trends, and opportunities facing business owners, CEOs, general managers, directors, and C-suite leaders. The findings reveal an upswing in sentiment, with 45% of respondents expressing greater optimism about their business prospects compared with the previous year. This represents a 12-point increase over 2024, when 34% reported feeling optimistic. Business leaders identified their improved outlook as being driven mainly by business growth (45%), increased customer demand (40%), and enhancements to products, services, or sites (38%). "We haven't seen optimism this high in years, with business owners seeing opportunities to grow and introduce new products and services according to the latest 2degrees Shaping Business report," said Andrew Fairgray, Chief Business Officer of 2degrees. Fairgray added, "Productivity is also on the rise. More Kiwi businesses are coming to terms with what recent technological advances like AI can and can't do, and they're starting to employ these tools to improve their businesses. This is saving time and money, which allows these businesses to reinvest in other areas. "At 2degrees we've always been big believers in how technology can be used to improve businesses by freeing up time and giving business owners the opportunity to improve what they offer their customers." Thriving businesses The number of organisations describing themselves as 'Thriving' has increased to 19%, tracking alongside the resurgence in optimism following recent challenging years. More than two thirds of those surveyed agreed that growth is a key goal for 2025, with most focusing on increasing profit or revenue. The growth-oriented outlook is particularly pronounced among larger firms, both in headcount and turnover, signifying a shift away from a cautious, maintenance-minded approach to a more assertive posture towards expansion. Productivity growth Productivity has also shown improvement, with 46% of businesses reporting they are more productive now than in 2024. The adoption of AI appears to play a substantial role, with one in four attributing their productivity gains to these technologies, indicating greater acceptance of digital tools within business operations. There has also been a change in how productivity drivers are perceived, with fewer businesses (26%, down from 33% the previous year) now believing that hiring more skilled staff is the primary path to higher productivity. This points to a growing emphasis on leveraging technology over talent acquisition. Andrew Fairgray says: "These findings should be seen as a positive signal - it's not about reducing headcount, but about empowering the talented people we already have. By embracing the latest technology, New Zealand businesses are unlocking new levels of productivity and enabling their teams to do their best work. This is an encouraging shift to see." Cost pressures and price adjustments Despite upbeat outlooks and productivity gains, challenges persist. Eight in ten businesses noted a rise in operating costs over the past twelve months, with the rate of increases higher than that seen in 2024. Reduced customer spending and input cost pressure were also frequently cited obstacles. In response, approximately half of the surveyed businesses are planning to raise prices within the next twelve months. Alongside rising costs, the pace of price increases themselves is expected to outstrip that of the previous year. On the competitive landscape, respondents were twice as likely to describe market competition as "healthy" rather than "poor", an assessment particularly prevalent among businesses with more than 51 employees. Support needs Businesses pinpointed a number of areas where support would be beneficial in the year ahead. Cashflow remains crucial for growth; however, improved technology and stronger digital skills are becoming increasingly valued. When asked how government could assist the sector, tax incentives and breaks were most frequently suggested, with many also highlighting the containment of inflation and the cost of living as key priorities for economic stability.
Scoop
15 hours ago
- Business
- Scoop
New Zealand Business Optimism Highest Since 2021, Bosses Expect Revenue Growth
2degrees' 2025 Shaping Business Study has found New Zealand's business sector is the most optimistic it has been since the survey began in 2021, with leaders significantly more optimistic than in 2024. 2degrees today unveiled the results of a survey conducted by insights and research agency Matter, which engaged more than 500 employing business decision-makers around Aotearoa between mid-April to early May 2025. The research, which is now in its sixth edition, aims to understand the key issues, trends, concerns and opportunities on the minds of business owners, CEOs, directors, general managers and C-suite leaders, which are impacting the business landscape. The research found that NZ business leaders are positive about the year ahead, with 45% of those surveyed saying they feel more optimistic about the outlook and prospects for their business compared to the previous year. This was a very significant (12 point) increase from 2024, where 34% said they felt optimistic about the coming year. When asked what factors have led to greater optimism, the top reasons business leaders responded with were: business growth (45%), growth in customers or demand (40%), and improving products, services or sites (38%). Andrew Fairgray, Chief Business Officer of 2degrees, said the results show that New Zealand business owners feel like they're moving in the right direction. 'We haven't seen optimism this high in years, with business owners seeing opportunities to grow and introduce new products and services according to the latest 2degrees Shaping Business report,' Fairgray said. 'Productivity is also on the rise. More Kiwi businesses are coming to terms with what recent technological advances like AI can and can't do, and they're starting to employ these tools to improve their businesses. This is saving time and money, which allows these businesses to reinvest in other areas. 'At 2degrees we've always been big believers in how technology can be used to improve businesses by freeing up time and giving business owners the opportunity to improve what they offer their customers.' The proportion of businesses that identify as 'Thriving' has also grown to 19%, indicative again of the upswing in optimism after a tough period. A large number of leaders anticipate their revenue will grow in the year ahead. More than two thirds of businesses surveyed in Shaping Business said they agree that growth is a key business goal for the year ahead and the focus is on growing profit or revenue. This sentiment is significantly stronger among larger businesses (in terms of both size and turnover), and reflects a shift from a cautious 'maintenance' stance to a more bullish growth agenda. Productivity growth Productivity is trending upward, with 46% of Kiwi businesses reporting they are more productive now than they were in 2024. A significant contributor to this improvement appears to be the adoption of AI, with one in four businesses attributing their productivity gains to these technologies. This suggests a growing recognition of the value digital tools can bring to operations. Interestingly, when asked what businesses think will help them achieve higher levels of productivity fewer say: hiring more highly skilled staff. That figure has dropped from 33% last year to 26% in 2025, indicating a shift in how employers view the key drivers of productivity - moving from talent acquisition toward leveraging technology. Andrew Fairgray says: 'These findings should be seen as a positive signal - it's not about reducing headcount, but about empowering the talented people we already have. By embracing the latest technology, New Zealand businesses are unlocking new levels of productivity and enabling their teams to do their best work. This is an encouraging shift to see.' Challenges Despite the positive trends in productivity, businesses continue to face ongoing challenges - most notably, reduced customer spending and increased input costs. Nearly 80% of businesses surveyed have seen their operating costs increase in the past 12 months, and for those in this situation, costs are generally increasing at higher rates than they were in 2024. To help balance rising costs and the changing customer landscape, around one in two businesses are planning to increase prices in the next 12 months, and as seen with running costs, the rate of these increases is also trending higher vs 2024. Encouragingly, businesses are twice as likely to describe current market competition as 'healthy' rather than 'poor,' with larger businesses (51+ employees) more likely to hold this view. Helping Businesses Businesses have identified a range of ways they could use support in the coming year. Cashflow remains a key growth driver, while better technology and digital skills are becoming more prominent in 2025. When asked how the government could best support the business sector, tax incentives and breaks were the most frequently cited options. Many also highlighted the need to address inflation and the rising cost of living as key priorities for economic support. For more information on the Shaping Business Study, and to download the report for free, visit the 2degrees website here: About 2degrees 2degrees is a full-service telecommunications provider, committed to fighting for fair for Kiwis and businesses. 2degrees provides broadband, mobile, and electricity services across New Zealand. Since its launch, 2degrees has been on a mission to disrupt the market, standing up for fairness and flexibility in an industry that needed change. 2degrees is backed by award-winning customer service, and delivers innovative solutions, allowing customers to choose the connectivity options that suit them best. Through custom-built technology platforms and a commitment to doing things differently, 2degrees empowers Kiwis to stay connected on their own terms.
