Latest news with #AucklandBusinessChamber
Scoop
28-05-2025
- Business
- Scoop
Businesses Struggling To Keep Doors Open As Energy Costs Surge
Press Release – Auckland Business Chamber New Zealand businesses are suffering under the yoke of rising energy costs, with many reluctant to speak out for fear of commercial retaliation from major energy suppliers. That's the main take-out from a new survey carried out by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF). Survey responses were garnered mainly from SMEs in the Upper North Island, with manufacturing the most heavily represented sector. Chamber CEO Simon Bridges says the survey findings show that energy costs are right at the top of the list of concerns for businesses, in what is a very challenging operating environment. 'Nearly 90% of respondents say that energy costs have increased in the past year, and just under 50% describe those costs as highly concerning. When energy costs combine with the pressure from weak market demand, inflation and increased compliance costs, the result is that many businesses are struggling to keep their doors open.' Mr Bridges says one unexpected, and troubling, insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs, for fear of commercial repercussions. 'Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeorpardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market. Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying. 'It's high time the Government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector.' NIF Executive Director Barney Irvine says the survey results also underline the drag that energy costs are placing on New Zealand's growth and productivity, and on people's livelihoods. 'As a response to rising energy costs, 52% of business surveyed say they have increased the prices they charge to customers; a quarter say they cut back production; the same proportion say they have laid off staff; and just under 20% have cancelled or deferred investment. Unnecessarily high energy costs impact on everyone.' Businesses are looking to the Government for leadership, he adds. 'Over three-quarters of survey respondents believe that the Government should treat addressing energy costs as a high or very high priority, and they're absolutely right. 'The Government has a good sense of what needs to be done to turn the performance of the sector around for the long-term; what's needed now is swift, decisive action.' In particular, the Chamber and NIF want to see the ten-point Energy Action Plan they launched in February this year – which focused on strengthening sector stewardship, improving resilience, and increasing generation and competition – incorporated into government policy. Key findings from the survey include: Nearly 90% of respondents say that energy costs have increased over the past year, with over 40% reporting that the increase has been large or very large Just under 50% of respondents describe energy costs as highly concerning (i.e., a rating of 8-10 out of 10), similar to the level in concern in relation to market demand, inflationary pressure and compliance costs Over 60%% report an impact on their business as a result of rising costs, with 34% describing the impact has as large or very large As a response to rising costs, 52% of respondents say they have increased their own prices, while 25% report having cut back production, and the same proportion report having laid off staff. Just under 20% have cancelled or deferred investment Over 80% expect prices to increase again in the year ahead
RNZ News
28-05-2025
- Business
- RNZ News
Survey reveals businesses fear upsetting gentailers if they complain about high energy costs
Auckland Business Chamber chief executive Simon Bridges Photo: RNZ / Samuel Rillstone Businesses say they are struggling to keep their doors open as energy costs surge, but they're reluctant to speak up in fear of retaliation from energy suppliers. An Auckland Business Chamber and Northern Infrastructure Forum (NIF) survey of small and medium sized businesses, heavily represented by manufacturers, found 90 percent identified energy costs as a primary concern, while half said the costs were highly concerning. Chamber chief executive Simon Bridges said energy costs combined with pressure from weak market demand, inflation and increased compliance costs had left many businesses struggling to keep their doors open. Bridges said one unexpected and troubling insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs. "Many of the businesses we spoke to - especially those dependent on gas supply - were really uneasy about speaking publicly, for fear that it could jeopardise their ability to secure future energy contracts with the gentailers, who control close to 85 percent of the retail market. "Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying," he said. "It's high time the government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector." NIF executive director Barney Irvine said the survey results also underlined the drag that energy costs were placing on New Zealand's growth and productivity. "As a response to rising energy costs, 52 percent of business surveyed say they have increased the prices they charge to customers," Irvine said. "A quarter say they cut back production. The same proportion say they have laid off staff and just under 20 percent have cancelled or deferred investment." The survey found more than three-quarters of respondents believed the government should treat addressing energy costs as a high or very high priority. "The government has a good sense of what needs to be done to turn the performance of the sector around for the long-term," Irvine said. The Chamber and NIF wanted to see the government implement a 10-point energy action plan they launched in February to address the issues raised by the survey. The four big energy companies have been asked for comment.
Scoop
16-05-2025
- Business
- Scoop
Auckland Business Confidence Falls Further Ahead Of Budget 2025 – May 2025 Confidence Survey
Press Release – Auckland Business Chamber After a terrible and prolonged period, businesspeople were hoping for better days by now and so-called green shoots. But the reality is they dont see that yet, says Simon Bridges, CEO of the Auckland Business Chamber. The latest Auckland Business Chamber confidence survey shows business conditions in Auckland remain incredibly tough, with most sentiment indicators worsening compared to the previous quarter. Key Findings: Business Confidence: 47% report negative business sentiment, up from 44%. Economic Performance: 38% expect New Zealand's economic performance to improve over the next 12 months, down from 44%. Business Performance: 50% report underperformance against expectations, up from 45%. Business Revenue: 49% report a decrease in revenue compared to the previous year, up slightly from 48%. 54% expect revenue to remain flat or decline over the next 12 months, up from 46%. Business Costs: 78% expect costs to rise over the next 12 months, up from 76%. 61% have increased or plan to increase their prices, up slightly from 60%. Top Business Concerns: Consumer confidence and demand: 66%, up from 53%. International trade and geopolitical risks: 42% up from 27% Productivity and growth: 39%, down slightly from 40%. Cash flow: 37%, up from 35%. Inflationary pressure and interest rates: 26%, down slightly from 27%. 'After a terrible and prolonged period, businesspeople were hoping for better days by now and so-called 'green shoots.' But the reality is they don't see that yet,' says Simon Bridges, CEO of the Auckland Business Chamber. 'Some of that is the 'Trump effect,' with geopolitics continuing to rise as a top concern. But with less than a week until Budget 2025, domestic settings also assume huge significance. 'Austerity won't be enough from the government next Thursday. That sort of Budget alone will simply prolong the economic pain. 'While fiscal restraint is important, the Auckland business community also needs some serious evidence of the 'Going for Growth' agenda the government speaks about. Whether this is tax or regulatory relief, or some other policy silver linings, will be Finance Minister Willis' prerogative. But one thing is for sure: light at the end of the tunnel is essential,' said Mr Bridges.
Scoop
15-05-2025
- Business
- Scoop
Auckland Business Confidence Falls Further Ahead Of Budget 2025 – May 2025 Confidence Survey
Press Release – Auckland Business Chamber The latest Auckland Business Chamber confidence survey shows business conditions in Auckland remain incredibly tough, with most sentiment indicators worsening compared to the previous quarter. Key Findings: Business Confidence: 47% report negative business sentiment, up from 44%. Economic Performance: 38% expect New Zealand's economic performance to improve over the next 12 months, down from 44%. Business Performance: 50% report underperformance against expectations, up from 45%. Business Revenue: 49% report a decrease in revenue compared to the previous year, up slightly from 48%. 54% expect revenue to remain flat or decline over the next 12 months, up from 46%. Business Costs: 78% expect costs to rise over the next 12 months, up from 76%. 61% have increased or plan to increase their prices, up slightly from 60%. Top Business Concerns: Consumer confidence and demand: 66%, up from 53%. International trade and geopolitical risks: 42% up from 27% Productivity and growth: 39%, down slightly from 40%. Cash flow: 37%, up from 35%. Inflationary pressure and interest rates: 26%, down slightly from 27%. 'After a terrible and prolonged period, businesspeople were hoping for better days by now and so-called 'green shoots.' But the reality is they don't see that yet,' says Simon Bridges, CEO of the Auckland Business Chamber. 'Some of that is the 'Trump effect,' with geopolitics continuing to rise as a top concern. But with less than a week until Budget 2025, domestic settings also assume huge significance. 'Austerity won't be enough from the government next Thursday. That sort of Budget alone will simply prolong the economic pain. 'While fiscal restraint is important, the Auckland business community also needs some serious evidence of the 'Going for Growth' agenda the government speaks about. Whether this is tax or regulatory relief, or some other policy silver linings, will be Finance Minister Willis' prerogative. But one thing is for sure: light at the end of the tunnel is essential,' said Mr Bridges.
Scoop
15-05-2025
- Business
- Scoop
Auckland Business Confidence Falls Further Ahead Of Budget 2025 - May 2025 Confidence Survey
The latest Auckland Business Chamber confidence survey shows business conditions in Auckland remain incredibly tough, with most sentiment indicators worsening compared to the previous quarter. Key Findings: Business Confidence: 47% report negative business sentiment, up from 44%. Economic Performance: 38% expect New Zealand's economic performance to improve over the next 12 months, down from 44%. Business Performance: 50% report underperformance against expectations, up from 45%. Business Revenue: 49% report a decrease in revenue compared to the previous year, up slightly from 48%. 54% expect revenue to remain flat or decline over the next 12 months, up from 46%. Business Costs: 78% expect costs to rise over the next 12 months, up from 76%. 61% have increased or plan to increase their prices, up slightly from 60%. Top Business Concerns: Consumer confidence and demand: 66%, up from 53%. International trade and geopolitical risks: 42% up from 27% Productivity and growth: 39%, down slightly from 40%. Cash flow: 37%, up from 35%. Inflationary pressure and interest rates: 26%, down slightly from 27%. 'After a terrible and prolonged period, businesspeople were hoping for better days by now and so-called 'green shoots.' But the reality is they don't see that yet,' says Simon Bridges, CEO of the Auckland Business Chamber. 'Some of that is the 'Trump effect,' with geopolitics continuing to rise as a top concern. But with less than a week until Budget 2025, domestic settings also assume huge significance. 'Austerity won't be enough from the government next Thursday. That sort of Budget alone will simply prolong the economic pain. 'While fiscal restraint is important, the Auckland business community also needs some serious evidence of the 'Going for Growth' agenda the government speaks about. Whether this is tax or regulatory relief, or some other policy silver linings, will be Finance Minister Willis' prerogative. But one thing is for sure: light at the end of the tunnel is essential,' said Mr Bridges.
