Tauranga and the Western Bay are one of the top performing regions in the country. Photo /File
Tauranga and the Western Bay are one of the top performing regions in the country. Photo /File
The Western Bay's GDP has tipped $10 billion again despite Covid-19, with the region's primary sectors continuing to drive job creation.
A report from Infometrics on Tauranga and the Western Bay sub-region, which compares 2020 to 2019, highlights an unemployment rate of 3.9 per cent compared to the national rateof 4.6 per cent and a 2020 GDP of $10 billion only .06 per cent behind figures in 2019.
Business leaders say the outlook remained positive this year although they acknowledged ''flexibility and agility'' would determine future success.
Priority One chief executive Nigel Tutt. Photo / File
Priority One chief executive Nigel Tutt said the lower unemployment levels were great news and a lot of businesses were still struggling to recruit staff.
Construction, real estate, horticulture, distribution, manufacturing, logistics and healthcare made up a significant part of the Western Bay's GDP ''which is more a profits number than an earnings number''.
He said distribution, manufacturing and logistics tended to fly under the radar but was huge for the economy because it encompassed the Port of Tauranga, exporters and subsidiaries.
''We have performed better than New Zealand as a whole and most regions. Most of our core industries are still pretty strong.''
Businesses were also continuing to expand, relocate and start-up.
Infometics senior economist Brad Olsen said momentum had continued to build in Tauranga and the Western Bay.
''Yes we are still in a pandemic and yes our trade values are not in tip-top shape but they are in a pretty good position. We are expecting a pretty volatile economic outlook this year but the Western Bay could be partially insulated from any further shocks.
''We continue to see Tauranga in a strong position moving ahead.''
New Zealand Kiwifruit Growers Inc chief executive Nikki Johnson said direct revenue from kiwifruit exports flowing back to growers in the Bay of Plenty contributes $1.6 billion to the local economy.
''As over 80 per cent of kiwifruit is grown in the Bay of Plenty, a significant proportion of this revenue will flow back into the local economy.''
The record volumes of kiwifruit being produced in the Bay of Plenty were also expected to drive up the 8000 fulltime and 20,000 seasonal jobs, currently in the region.
Fonterra Global Supply Chain director Gordon Carlyle said in the 2018/19 season about $1 billion went to farmers in the Bay of Plenty region.
''For every dollar a farmer earns, they spend up to 50 cents in their local community. The money flows back into local economies as farmers do things like reinvest in their businesses and make more purchases of on-farm supplies and equipment.''
The Port of Tauranga was important to Fonterra and was a significant part of its supply chain.
''The vast majority of our products made in the North Island leaves through the port. That's about 1.4 million metric tonnes every year.''
Fonterra exports to more than 130 countries and it lifted its 2020/21 forecast Farmgate Milk Price range to $6.90-$7.50 per kgMS.
Last week the Port of Tauranga turned in a mid-year 2.3 per cent increase in group net profit after tax, despite volatile cargo volumes and fallout from supply chain congestion and severe ship delays at Auckland.
Group net profit after tax for the first six months of the 2021 financial year to December was $49.4 million, achieved despite a 1.3 per cent decrease in total trade volumes to 13.1 million tonnes.
Data revealed kiwifruit exports were up 5.4 per cent, and meat exports 1.6 per cent while Log exports were 2.1 per cent lower than at the same period last year.
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / File
Tauranga Chamber of Commerce chief executive Matt Cowley said businesses remained mostly optimistic.
''There are a lot of changes and uncertainties, which may open up opportunities for smaller companies to innovate and capture customers off bigger companies.''
Flexibility and agility would be the key determinants of business success this year, he said.
''Tauranga has a growing supportive network for new business owners and entrepreneurs. There are plenty of ways people can meet with others who can help, mentor, invest or join them.
''We also have the added bonus of living an incredible lifestyle while people start their dream job of working for themselves.''
Master Builders Association Tauranga president Todd Grey. Photo / File
Master Builders Association Tauranga president Todd Grey said 2020 was a strong year after initial Covid concerns.
The Infometrics report highlighted a 5.6 per cent increase in residential consents and Grey said most builders were busy.
Border restrictions meant some people had opted to use travel funds to renovate homes which had also created more work.
Construction jobs were still available and ''with the demand in building we are always on the lookout for good guys''.
1st Call Recruitment managing director Phil van Syp. Photo / File
1st Call Recruitment managing director Phil van Syp agreed and said it had vacancies in manufacturing, construction, roading and civil works.
''You just have to drive around Tauranga to realise roading is a nightmare. The civil side of things is one of our biggest workforces and it is just growing.''
How has the Western Bay fared in 2020?
GDP steady at -0.6% $10b GDP for the year NZ is -2.6%
Unemployment rate 3.9% NZ is 4.6%
Health enrolments +3.2% 195,000 people enrolled with primary healthcare providers NZ is +2.0%
Consumer spending unchanged at +0.0% NZ is -3.2%
Residential consents +5.6% NZ is +4.8% House values +15.1% NZ is +13.0%
