I’ve put together some summary information below of the 2015 business year to help my clients across various industry sectors make better informed decisions for 2016.
At DaltonPlan® we have had another busy and successful year working with our great clients across a wide range of market sectors. I am lucky to be able to work with the country’s most positive and enthusiastic business owners who want to do better and strive to do so.
Jo and I love living and working at the Mount and look forward to spending these holidays here on the beach. Harry, our youngest, pledged to teach us to surf this year! Carpe diem.
Merry Christmas everyone. Please contact me any time if you have any questions. Stay safe on our roads and in the water.
Manufacturing signals economic expansion
The BNZ-BusinessNZ performance of manufacturing index rose to show New Zealand manufacturing activity picking up in November 2015, suggesting the economy expanded at a faster pace in the second half of the year.
The manufacturing sector has been expanding since October 2012. "Strong new orders, especially relative to still-falling inventory, are a positive signal for more production ahead," Bank of New Zealand senior economist Doug Steel said in his report.
Retail and Hospitality Sector Continues Growth Surge
Tuesday 17 November 2015 - The retail and hospitality industry is continuing to exceed national SME growth, with almost 40% of SME business operators in the sector reporting a revenue increase in the past 12 months.
In the year ahead to September 2016, 37% of retailers and hospitality business operators expect to see a further increase in revenue, again ahead of the SME average.
SMEs in the retail and hospitality industry have embraced the opportunities of the digital economy, with the highest level of online engagement of any of the sectors surveyed.
While a national average of 46% of SME business operators have no online presence, just 18% in the retail and hospitality industry are not online. SMEs in the sector are more than twice as likely to have both a website and social media, at 42% (20% average), while a further 22% operate just a website and 14% solely use social media to connect with customers online.
Increased Pay Rates
Almost a third of operators plan to increase their employees’ pay within the next 12 months, with 29% indicating a pay rise, compared to the national average of 20%.
Over a third (35%) of operators plan to offset pressure on margins by increasing prices and margins on products and services – well over the 25% national average. When it comes to marketing, the sector is investing heavily in online advertising, with 34% planning to increase their investment in online advertising in 2016.
Kiwi finance companies face more competition
KPMG Media Release – Tuesday 8 December 2015
It’s been a year of fast-paced competition and change for New Zealand’s non-bank financial sector.
The sector achieved net profits of $254.62m in 2015, which was a 6.7% decrease from 2014. “This performance is a remarkable achievement considering the current low interest rate environment; and the intense competition coming from both existing market players and new entrants, banks and peer-to-peer lenders.” Says John Kensington, KPMG’s Head of Financial Services.
One of the big stories of the past year has been the emergence of peer-to-peer (P2P) lenders; including Harmoney, Squirrel Money, LendMe and LendingCrowd.
“Executives surveyed agreed that P2P lenders are the biggest disruptor in the personal/consumer market space at the moment.”
Another big theme for the year was the level of sales and acquisitions. GE Capital has signed agreements to sell its New Zealand consumer and commercial financing businesses. Soon-to-be-rebranded Warehouse Money is now wholly-owned by the Warehouse Group, and Fisher & Paykel (F&P) Finance has sold to ASX-listed FlexiGroup for $315m.
“A number of executives we spoke to believe that this natural disruption will create some significant opportunities in the sector.”
Please, email me on Dean@DaltonPlan.co.nz or contact me on 021 27 17 043 for a no obligation interview if you would like to work on effective strategic planning to develop your business and achieve your goals.
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