Business Central July 2021

20 | “Capital projects and investments from central and local government of more than $4.5 billion combined, coupled with a significant construction pipeline further support the recovery of our region....” Manawatu region showing strength T T Karen Phelps Residents in Palmerston North city and the Manawatū district conducted 77.2% of their retail spending in the region. REGIONAL DEVELOPMENT Manawatu - CEDA: Regional Development & Awards M anawatū’s recovery post Covid-19 lockdowns has outperformed the rest of Aotearoa. Infometrics indicated that the region’s Gross Domestic Product (GDP) declined by only 0.6% in the December 2020 year compared with a 2.6% fall nationwide, reflecting the drop in economic activity in the March to May lock- down period last year. Central Economic Development Agency (CEDA) Business Development Manager Nats Subramanian says a range of factors have insulated the region more than other parts of New Zealand from the effects of Covid-19 including the significant public sector work - force, including education, defence, agrifood and health, as well as a strong logistics and manufacturing sector. He says that regions with strong food- based primary industries, such as Manawatū, continue to perform well in the export mar- kets as more overseas markets are attracted to New Zealand’s high quality food produce and excellent food hygiene standards. Tourism also remains strong, as Manawatū largely focuses on the domestic market, which has in turn supported the hospitality, retail and accommodation sectors, says Nats. Locals have also played a part with their enduring dedication to buy local, he says. According to the Marketview retail report for January 2021, residents across Palmerston North city and Manawatū district conducted 77.2% of their retail spending in the region, compared to New Zealand where residents spent 66.2% with their local merchants. Nats says the high loyalty rate reflects the strength of the retail offering in Palmerston North, meaning locals do not need to travel to larger centres, like Wellington to get what they need. He also says that people within a two- hour drive will come to the region to spend with Wellington residents being a particu- larly significant market along with the wider Whanganui and Rangitikei regions. The recent Westpac Choose Manawatū Business Awards celebrated the success of lo - cal businesses with OBO named the Supreme Winner. The Palmerston North company makes hockey body protection products that are exported globally. Nats says it is brilliant to see businesses such as OBO being recognised by its peers. But it isn’t all plain sailing with some busi- ness sectors impacted worse than others. He also acknowledges that Covid-19 could continue to throw challenges at business in 2021 so it is important they are engaged and prepared. The region’s rapidly rising house prices have also meant that although the talent that businesses need might want to move to Manawatū there is simply not the housing to accommodate them presenting an additional challenge. Nats views this as “growing pains” as the region booms and says that residential con- sents grew 12% in the September 2020 year on the back of a particularly strong June 2020 quarter. At $193.7m in the September 2020 year, non-residential consents are at unprece- dented levels for the region, which will further contribute to the region’s growth. “Capital projects and investments from central and local government of more than $4.5 billion combined, coupled with a signifi - cant construction pipeline further support the recovery of our region, along with our resilient primary sector and connected business com- munity. “This signals to business and private inves- tors that there is strong confidence in Mana - watū. 2021 and beyond is looking bright and we will come back stronger than before.”