April/May 2020 - BAY OF PLENTY BUSINESS NEWS

More documents

Recommendations

Info

12 BAY OF PLENTY BUSINESS NEWS April/May 2020 SPECIAL FOCUS – COVID-19 Looking to the longer-term recovery Covid-19 is an extraordinary situation that has shocked the world’s economy. There is a lot of anxiety amongst the business community because businesses like certainty and there are a lot of uncertainties as the situation is constantly changing. COMMENT By MATT COWLEY Many tourism, venues, and entertainment operators had the rug pulled from underneath them on with bookings immediately cancelled. Tourism operators who are reliant on cruise passengers have already made up to 90 percent of their staff redundant. Tourism is at the coal face of border restrictions, and the tourism economy is our biggest export earner and impacts many businesses in a variety of ways. Businesses are having to quickly change the way they operate. Some businesses have too many staff for their declining sales, while other businesses have a massive shortage of staff (e.g. supermarkets, deliveries, kiwifruit, the banking sector). Businesses can also have anxiety as they may have significant mortgages after recent capital expansion in anticipation of growth. This was an economic black swan event that has taken the world by surprise. Few people anticipated it would reach these levels of economic restrictions. Exports still moving The economic lifelines are that our local exporters are still getting their shipments to overseas markets. Our government has also invested wisely, following the economic disruptions over the past two decades. The Reserve Bank of NZ also has a lot of tools in its arsenal, and they are working with NZ’s banks, who are self-interested in having the economy moving again. The Tauranga Chamber is working with Tourism BOP, Priority One and other business associations to help connect people and encourage locals to continue to support local businesses. It is in everyone’s best interests to have as many people employed and in business as possible to keep cash moving through our local economy. We are encouraging local residents to support local businesses by either ordering online or having kerbside pickups. We are also encouraging locals to buy gift cards to use at a later date as well as sharing and supporting their favourite local business on social media. The Chamber is also looking to use our different networks to help promote people to visit local businesses during the recovery. It is challenging for businesses to ramp down their business at short notice. But it will also be a challenge to ramp it back up quickly once the recovery has begun. The Chamber’s business advisors are on hand to offer Matt Cowley is the chief executive of the Chamber of Commerce Tauranga Region Inc. help to businesses during the initial downturn, as well as during the long-term recovery. (NB: the one month lockdown kicked in just as BOP Business News went to print) The Tauranga Chamber of Commerce is expanding its resources to help businesses affected by Covid-19. Additional funding has been provided by the government to the Regional Business Partnership Network (RBP) nationwide. The Bay of Plenty region received funding for an additional three full-time Growth Advisors to support businesses, boosting the existing four advisors already New Zealand’s kiwifruit harvest has begun to move to overseas markets. Photo/Zespri. Increased support is available working here. The advisors are being shared across Tauranga Chamber of Commerce, Eastern Bay of Plenty Chamber of Commerce and Rotorua Business Chamber, as well as Poutama Trust, which will receive a Growth Advisor to boost support for Māori business networks and owners. Businesses can contact the Biz Hub helpline to arrange a meeting (one-to-one or digitally), free of charge, with one of the Growth Advisors to discuss how they are affected by COVID-19 and what support they need. Tauranga Chamber of Commerce chief executive Matt Cowley said there was so much information available it could be overwhelming. “We want the business community to know they have somewhere to turn to for guidance and that they can walk away from their session with a Growth Advisor with a renewed level of confidence and support.” If you are a business based in the Western Bay of Plenty, and you want to gain free business support from a Growth Advisor, please contact the Tauranga Chamber of Commerce on info@ tauranga.org.nz or 0800 BIZ HUB (0800 249 482). If you are a business based in Eastern or Central Bay of Plenty, please contact 07 346 3657. Positivity and good information crucial March has certainly been interesting month. In the Bay we’ve gone from being flat out, with concerns about how we’ll cope with growth, to staring at an impending recession. COMMENT By NIGEL TUTT The speed of the Covid- 19 crisis and associated economic downturn has been rapid. It’s very hard to see how long and severe a downturn might be. Media and economists tend to favour the more negative end of the spectrum. Adopting a local view is important alongside understanding the national and global impacts. In the Western Bay, we came into this downturn in pretty good shape. Our economy was probably the strongest in New Zealand, with low unemployment, rising income levels and strong business and economic growth. Covid-19 has had some immediate and strong effects on our local businesses, particularly tourism and hospitality – due to border controls and social distancing. The effect on some of these businesses has unfortunately been severe and will get much worse now we are going into community lockdown While it is troubling and very uncertain, this situation feels different than our last recession, the Global Financial Crisis. Right now we’re dealing with the effects of a health crisis and its associated economic fallout. The economy should spring back The structure of the world economy is in a very different place to what led to the GFC. When the health crisis is eventually solved or mitigated, the economy should be able to spring back. We are also fortunate that the New Zealand economy is in good shape to combat the economic effects of this problem. On the flipside, the lockdown could create economic damage of a level we haven’t seen before, and we don’t know how long the after-effects of that would last. In the Western Bay we are so far fortunate that our Positivity is important in these times, as well as good information, so let’s try to keep a good perspective on the situation in the coming months.” key industries (construction, distribution / logistics, manufacturing, healthcare and horticulture) are not structurally affected right now. While businesses in these sectors have concerns, in general the fundamentals remain stable. Markets remain open for Nigel Tutt is the chief executive of Tauranga EDA Priority One our exported goods and trading conditions at the time of writing are close to normal for most businesses. While I’ve painted a picture that’s perhaps not as bad as we see in mainstream media, there are certainly big risks ahead of us: labour supply will likely be a problem in horticulture (although that may be good if workers from other industries need employment), we would be at risk if access to markets for our exports was restricted, and consumer / business confidence will be reduced, which will have an effect on demand for most industries. The ability to get people to and from productive work will be a big determinant of economic outcomes. So while this is a shock and a very difficult time for some, it doesn’t look like the end of the world yet. Positivity is important in these times, as well as good information, so let’s try to keep a good perspective on the situation in the coming months.
SPECIAL FOCUS – COVID-19 April/May 2020 BAY OF PLENTY BUSINESS NEWS 13 Italian lessons for Covid-19 kiwifruit harvest The Italian experience with the Covid-19 pandemic is providing some valuable lessons for kiwifruit processors in the Bay of Plenty as they grapple with harvesting a record crop under strict bio-security protocols. By RICHARD RENNIE Kiwifruit orchardists and packhouses had already been scrambling to reorganise staffing rosters in March after the shock impact of border closures resulted in the Bay losing over half the overseas staff it expected for this year’s bumper kiwifruit harvest. The announcement that no foreigners would be allowed into New Zealand meant 1300 Recognised Seasonal Employer (RSE) staff were locked out until the ban has been lifted. Apata chief executive Stu Weston said he and his colleagues have had several conference calls with their peers in Northern Italy about the best ways to re-configure packhouses, maintaining a safe distance between staff while also continuing to process and pack fruit effectively. Italian fruit processors are at a low ebb for kiwifruit now, but often also process other fruit in the same facilities and have managed to continue to do so with Covid-19, which has hit Italy especially hard. “We have also had a lot of assistance from Zespri who have us bulk packing first, which is less labour intensive compared to the layered packing process,” said Weston. “We have erected barriers around packhouses to separate people. The key challenge is really around smoko rooms where people congregate and with high touch surfaces.” Essential business The kiwifruit sector has been classed as an “essential” business and with that all contractors and post-harvest operators have to register with Ministry for Primary Industries. That includes producing a full risk management outline on how they intend to manage “We have found growers have been very understanding, but we expect we may even see a smoother harvest curve this year as they accommodate our needs.” – Nikki Johnson staff from getting infected, and reporting infections. “But apart from operations, it is about managing staff head space in this situation and keeping them safe,” aid Weston. “There is cash to be earned here and jobs to be had for months to come. Those that want to stay home and watch NetFlix will. We have not seen that yet, but we are cognisant of that risk.” NZ Kiwifruit Growers Incorporated chief executive Nikki Johnson acknowledged there had been feedback about potential staff questioning their safety on the job, should they choose to work. One possibility mooted was allowing new staff in this and other essential businesses to be granted any government payment for loss of their earlier job, and keep the amount earnt conducting the essential role. A short pause was called to harvest after the PM announced the lockdown intention, but it was due to ramp up although not at the same pace as pre-Covid-19. “It is still very early in the harvest season. “We have found growers have been very understanding, but we expect we may even see a smoother harvest curve this year as they accommodate our needs. “We may see a more even five week peak, rather than that three week peak.” Meantime market prospects are still highly positive for New Zealand kiwifruit. 2degrees confirms its support of customers 2degrees has outlined its approach to customer care in response to the impacts of Covid-19. CEO Mark Aue reassured customers that its mobile and broadband networks are working well, and that the national operator is very confident in its capacity to manage extra demand. “We know these are unprecedented and uncertain times for our customers, but we don’t want them to worry about but staying connected. “My message to all 2degrees customers today is simple, we will do the right thing by you,” said Mark Aue. Details for 2degrees customers are as follows: • Data caps removed: 96% of 2degrees broadband customers are on unlimited data plans already. For those who aren’t we have removed data caps until the end of June 2020 (date will be reviewed ongoing). This applied to all home and business customers on 20 March 2020. • Hardship: if Covid-19 causes financial hardship to any 2degrees’ customers, the company will try to keep you connected during the Alert Level 4 period, waive any late payment fees and work with you through these trying Alert Level 4 times. FOR KIWI BUSINESS People are phoning each other more than ever, and there has been some congestion industry wide for voice calls. Mark asked people who can to use the calling features on apps such as FaceTime, WhatsApp, Viber and the like, to free up capacity for people who only use calling. Mark stressed that the industry is critically aware that it provides an essential service and is working together, and with Government, to make a difference now. Mark Aue, CEO 2degrees. Photo/supplied.
Page 1 and 2: APRIL/MAY 2020 VOLUME 4: ISSUE 4 WW
Page 3 and 4: April/May 2020 BAY OF PLENTY BUSINE
Page 11: SPECIAL FOCUS - COVID-19 April/May

April/May 2020 - BAY OF PLENTY BUSINESS NEWS

Create successful ePaper yourself

Delete template?

Save as template?