Carl Salmons from Birch Surveyors. Photo / Andrew Warner
Business growth is bouncing back with more than 350 companies starting up or adding new offices in Tauranga last year.
Commentators say it has caused a "snowball effect" which is likely to continue.
Figures from Statistics New Zealand showed in 2014 there were 13,788 businesses in Tauranga, up 353 from 13,435 in 2013 - compared to 13,542 in 2012.
Priority One chief executive Andrew Coker said it was working with 20 businesses across several sectors including ICT, export manufacturing, food processing and professional services "who are at various stages of decision making in terms of establishing operations in the Bay".
That reflected the success of its ongoing targeted campaign it launched in 2012, he said.
This resulted in more than 20 businesses moving into the area, which had pumped millions of dollars into the local economy.
Tauranga had a competitive edge over other regions and would increasingly be the destination of choice for businesses considering relocating, he said.
"It is increasingly being seen as a viable place to do business due to the availability of business land and access to national and international markets."
"We believe that Tauranga will increasingly be the destination of choice ... particularly in the light of the investment Port of Tauranga is making to expand its operations."
Tauranga Chamber of commerce chief executive Stan Gregec said there was a strong sense of optimism.
Employers were hiring people and undertaking projects as confidence soared, he said.
"Many of our members report that they have taken on more staff recently and are giving the green light to new projects. I can't recall the last time that things were so positive in Tauranga."
However, while growth was good news for most, it also put a lot of pressure on businesses to meet increased demand, he said.
"You can't do that easily without investing in better infrastructure and in systems and processes, and that's hard to do if you haven't planned ahead for it.
"A few companies will be caught in this predicament right now," he said.
Tauranga was seen as a good place to live and an equally good place to be in business right now, Mr Gregec said.
"That alignment hasn't always existed - but we're now seeing what happens when these two things come together and businesses start hiring and competing for good staff. It makes the decision to move and work here much easier."
Ross Stanway, chief executive of Eves and Bayleys Real Estate, said the profile of the wider Tauranga area had lifted hugely over the past few years and "now we are starting to see the benefits of that".
There was a high level of activity as new offices were built and the future commercial expansion at Tauriko boded well for the future, he said.
"I think a lot of businesses are seriously looking at relocating to Tauranga from other centres because of competitive pricing and the availability of skilled personnel. So in a way it is a snowball effect ... that in itself starts to attract new businesses."
Birch Surveyors Tauranga branch manager Carl Salmons said the company set up an office in the city in 2012 as a logical extension to its base in South Auckland and North Waikato.
Staff numbers had increased to four fulltime and one part time.
"We saw our initial research and networking efforts, primarily in the Tauranga CBD, turn into new client inquiries which in turn led to work."
It managed a variety of simple and complex projects ranging from multi-lot subdivision to boundary adjustments to specialist planning advice and land use consents for large buildings and facilities.
Mr Salmons said he was impressed at how welcoming the business community was, but modern, affordable office space and better express roading links to the Waikato and Auckland were desirable.
"We are positive that Tauranga is well placed to cater for a significant amount of the population growth in the North Island in the coming years as baby boomers retire and younger generations become more selective about where they settle. Auckland's significant housing and roading issues will take a generation or two to fix and Tauranga needs to capitalise on this opportunity by continuing to encourage quality development and promoting itself as being open for business."
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