Tauranga reaps the benefits of IT age

Tauranga is reaping the benefits of the information technology age by strong growth in the administrative and support services job sector.

The city's lifestyle attractions combined with the ability for government departments and companies to outsource work to the regions were driving this emerging trend, according to economic development and personnel experts.

The emerging importance to Tauranga of information technology-based enterprises was highlighted by the Ministry of Economic Development's 2015 Regional Economic Activity Report.

"Tauranga has seen strong growth in administrative and support services over the past decade, partially driven by higher-than-average population growth," the report said.

Another key employer identified in the report was the horticultural sector which contributed 5 per cent of jobs in the Western Bay. Jobs were centred on kiwifruit, avocados and manuka honey.

Conclusions in the report have been echoed by Western Bay's economic development agency Priority One.

Chairman Murray Denyer said the Western Bay had shaken off the lingering effects of the global financial crisis.

"By just about any economic measure, we can say the region is indeed our place to shine," he said.

An exciting development had been the evolution from very low numbers of businesses set up by innovators and entrepreneurs. "This is rapidly building the Western Bay's reputation as an innovation hotspot and base for entrepreneurial activity."

Mr Denyer said the evolution had happened because of initiatives like the development of the information and communication technology (ICT) cluster that now totalled nearly 300 businesses.

Chief executive Andrew Coker told the Bay of Plenty Weekend that the cluster ranged from sole operators to large corporate IT businesses.

The nature of the ICT business meant it was not site specific, allowing people to be drawn to Tauranga for its lifestyle advantages. Another driver of the well-performing administrative and support services sector had been the Western Bay's population growth, he said.

Personnel Resources Temp Resources managing director Ian Chitty said the shift of jobs out of head offices had helped drive the growth in admin and support services jobs, such as Inland Revenue and infrastructure companies.

Customer service and admin jobs that went wider than the Bay of Plenty had been a growth area for Tauranga, including internet customer service and call-centre staff.

"Technology is enabling people to be based anywhere."

Tauranga's cost structure for things like rentals, wages and carparking was also very competitive with centres like Auckland. International clients were using Tauranga-based businesses to prepare documents or do IT support services, taking advantage of time zones so the work was completed for their next working day.

Websites for international clients were being developed in Papamoa and software was being developed in Tauranga for parent companies, Mr Chitty said.

Lawyers and accountants were also cashing in on the growth in administrative and support services.

By the numbers

* Bay of Plenty's Employment Strengths

Administrative and support services: 10,960 jobs (7.2% of all jobs)

Agriculture: 6190 jobs (4.1% of all jobs)

Horticulture: 3730 jobs (2.5% of all jobs)

* Business Growth Factors Relevant to the Bay of Plenty*

Extending Ultra-Fast Broadband

Tauranga Eastern Link

International students

Completing the New Zealand Cycle Trail

Build regional business hubs

Regional research institutes

Primary growth partnerships R&D programme

Unlock the productivity of Maori-owned land

Increase supply of affordable houses

Increase social housing through community providers

Boost skilled migration

- Regional Economic Activity Report