Marlborough survey finds low confidence in forestry, viticulture and construction industries

The viticulture industry has indicated low business confidence in a recent survey in Marlborough. Photo / 123rf

The forestry, viticulture and construction industries are among those feeling low business confidence in Marlborough, interim survey results show.

The survey, completed by 113 businesses, also suggests some industries find it hard to employ people with the relevant skills for the job.

Marlborough Chamber of Commerce interim chief executive Stephen Waters and regional business partnership adviser Rose Ryan presented the initial findings of the latest Business Confidence Survey to a council committee on November 26.

The survey has been undertaken twice a year since 2022.

Waters said he had wondered if businesses were starting to get “survey fatigue”.

Ryan said some industries in Marlborough were doing better than others.

“There are a number of businesses in Marlborough who are doing very well,” she said.

“They’re in a good financial position, they’ve had a good year.”

The survey period coincided with a national bump in business confidence, Ryan said.

“The three industries that are doing not so well are forestry, wine and construction, and of course they’re businesses that have a lot of economic significance behind them.

“So there is a bit of a tale of two halves or two different parts of business experience at the moment.

“Then there’s a bunch of others who are sort of having a bit of a mixed position.

“The hospitality industry in particular is suffering from reduced demand, but there’s actually quite a feeling of optimism amongst tourism hospitality businesses.”

Businesses were asked how their financial performance had improved or worsened and the results varied, she said.

“The performance is actually relatively good, 49% had revenues and sales that exceeded that of last year and 44% forecast that to improve over the coming year, and 47% expected profitability to increase.

“So there is a good undercurrent of good financial performance coming through.”

Between 41% and 43% of businesses felt reasonably confident about the year ahead and were expecting their revenues to go up, profitability to go up and economic conditions to improve, Ryan said.

“As has been common in these surveys, businesses are often more confident about their own business than they are about the economy as a whole or about their sector.

“That may be the influence of some of the discussion in the media or things that are happening in their sector, but they’re generally feeling quite confident in their own businesses.”

One of the key labour market issues had been identified as challenges with attracting the right skills to the region.

“Particularly for industries that have highly skilled staff or who have specialist technical skills such as in the wine industry.

“There are real difficulties getting technical and specialist skills, but there are still other issues that that level are facing.

“Low applicant numbers, that’s a particular issue, and some concern about realistic salary expectations.”

Of those that responded, 14% had been in business for less than two years, 19% for 2-5 years, 10% for 6-10 years and 58% of responders for more than 10 years.

Just under 50% of businesses had turnover of less than $500,000 a year, and nearly 20% had turnover of more than $5m.

Of the businesses that responded, 78 had five or fewer fulltime employees, 13 had 6-20 employees, nine had 21-50 employees and 11 had more than 50.

LDR is local body journalism co-funded by RNZ and NZ On Air