Autumn 2021 Hawke's Bay Business Climate Update From Hutch
In my October 2020 Spring Update I outlined how I saw the Hawke's Bay business climate as we headed towards the end of 2020 – READ IT AGAIN HERE
And without wanting to sound like Ground Hog day, in my view not a lot has changed.
Hawke's Bay Business Confidence Optimistic
Businesses I work with (that I think are a good snap shot of Hawke's Bay SMEs) had a pretty strong run up to Christmas and a good finish to the end of the financial year. Their financial reporting is showing strong trading and financial position, but there is still a feeling of cautious optimism.
Although the numbers have in the main tracked in the right direction, I believe this has had a personal toll on some business owners. There has been even more pressure on businesses in 2021 as they have had to deal with managing their business in a pandemic, uncertainty, a shortage of qualified and capable staff, and supply issues.
There can be the feeling of loneliness when you run your own business and well-being is a topic that wasn’t really discussed a few years ago, but it is definitely on the radar and being actively talked about now. And this is a good thing.
So, what do I see as the pain points right now?
While not a lot has changed since my October commentary, here are my takes for 2021:
- Finding qualified and experienced staff across a range of industries.
- Supply chain issues – getting goods and raw materials into the country.
- RSE workers to pick the fruit and keep the horticulture economy humming.
- Business owners keeping balance in their lives and not succumbing to their business pressures.
What did I hope for in the period October 2020 to March 2021 and how did we do?
- That business volume continues to be no less than it is now – ACHIEVED
- People keep spending – ACHIEVED
- Experienced staff continue to deliver productivity – but still with a shortage of staff – ACHIEVED
- The new government looks to stimulate business activity rather than try and tax our way into the future – NEUTRAL
- (I can't say that I have really seen anything from the government that will make a huge difference in Hawke's Bay for business - am I being unfair? We still remain covid free however and for that I am grateful.)
What do I hope for in the 1st quarter of this financial year?
- That business owners get a chance to take a breath and share some of the pressure.
- That business volume doesn’t decline.
- That the cash continues to circulate through Hawke's Bay's communities and families.
- That businesses that are suffering from labour shortages look at ways to collaborate with others in their industry as opposed to seeing them as competitors.
- That supply chains remain strong.
- That we don't suffer the winter blues!
Please be in touch for a chat!
So that's my take on the Hawke's Bay business climate looking into 2021. If you you'd like to have a chat about anything I've covered above, my door is always open. You can find me on 021 748 142 or john@planaconsulting.co.nz
Regards, Hutch.
