Waitematā economic development overview 2013

Transcription

1 Waitematā economic development overview 2013

2 Waitematā economic development overview Quick economic facts Waitematā Share of Auckland/ Auckland Population (2013) 77, % Labour force participation (2013) 72% 67% GDP (2012) $22.5 billion* 28.5% Employment (2012) 154, % Businesses (2012) 24, % * adjusted to 2012 $ What makes Waitematā s economy stand out? One Two Three Four Five Waitematā is the location of Auckland s CBD in which 92,777 people are employed; Waitematā is home to almost a quarter of Auckland s employment and generates 29 per cent of regional GDP. Over 50 per cent of the region s professional, scientific and technical services and information media and telecommunications jobs are in Waitematā and over 60 per cent of jobs in financial and insurance services are here. Sectors that compete internationally are strongly represented, ICT, tourism, international education, biotechnology and creative industries each contributing a greater share of the Waitematā economy than they do regionally. Fifty-four per cent of jobs in Waitematā are in knowledge-intensive industries compared to 36 per cent regionally. Significant infrastructure projects have been approved that will shape how people travel into and around Waitematā. Waitematā is also the focus of a number of important plans including the City Centre Masterplan and Waterfront Masterplan and will be home to the Wynyard Quarter Innovation Precinct. Key industries The following industries are concentrated in Waitematā: Insurance and superannuation funds Telecommunications, internet and library services Auxiliary finance and insurance services Information media services Finance Professional, scientific and technical services Electricity and gas supply Administrative and support services * most strongly concentrated listed first, only includes sectors with GDP greater than $10m 1

3 Major employment areas Business area Employment (2012) CBD 92,777 Newmarket 14,759 Uptown 7,660 Newton/Grafton 6,243 Parnell North 3,122 Ponsonby Road 2,504 * business areas as defined by work underpinning the draft unitary plan An assessment of Waitematā s economic potential Strengths Challenges Economic powerhouse- scale and diversity Waitematā contains Auckland s CBD and is New Zealand s premier business centre, making it the region s largest employment area. Several universities have a presence and also home to Auckland City Hospital. Home to major events and venues. Strategic business location CBD is business and financial centre for New Zealand. Several of Auckland s top retail districts are located in the city and its fringe. Excellent links to the port, motorway network and improving rail services. Employs highly skilled workers from across Auckland region. Infrastructure Delivery of City Rail Link. Building capacity and patronage of public transport network. Ensuring easy commuter and goods flows into and out of the city centre. Enabling growth Limited additional land for economic growth. Intensification of activity without generating additional congestion and other costs to business. Maintaining and enhancing the public realm as pressures on land use increase. Maximising visitor spend Capture a greater level of international visitor spend. Priority area Strategic importance of CBD and surrounding areas means the area is covered by several significant plans (e.g. city centre, waterfront masterplans). 2

4 Opportunities Business friendly The area is an economic powerhouse for Auckland and contains New Zealand s premier business centre as well as thriving retail centres. BID partnerships in Uptown, Heart of the City, K Road, Newmarket, Parnell and Ponsonby and business association at Grey Lynn. Supporting the roll out of broadband through the UFB. Pressure to convert existing industrial land to other uses will further increase the scarcity of this resource. City Centre and Waterfront Masterplans will shape how people move around and live and work in the area. City Rail Link approved, will improve transport into and around the CBD and provide opportunities around new stations. Innovation and exports Development of Wynyard Quarter Innovation Precinct. Facilitating business capability and research and development investment. Many large businesses in the area, at a scale to be internationally competitive. Waitematā has strengths in several of the sectors in which Auckland is internationally competitive and the growth of these sectors will be important in delivery of the Auckland Plan. Skills Businesses can draw upon a well educated and skilled regional, as well as local workforce, where a high proportion of residents have a university degree. Ensure tertiary provision aligned to provide the skills businesses need to compete internationally. Vibrant and creative city Further development of streetscapes and public spaces to provide an attractive public realm for residents and visitors. Consider opportunities to enhance the quality and mix of retail and entertainment offerings in the City Fringe. Support development of tourist infrastructure and hospitality to capitalise on the presence of the CBD, cruise ship terminal and tourist attractions. Support for the development of the creative industries that are heavily concentrated within Waitematā. 3

5 Waitematā economic development overview 1. Introduction...5 What is local economic development?... 5 What is an economic development overview?... 5 The role of Local Boards Auckland s economic development...5 How do we measure economic success? People & households Skills Local economy Information media and telecommunications Professional, scientific and technical services Financial and insurance services Internationally competitive and platform technology sectors Industry growth Businesses in Waitematā Knowledge-intensive industries Waitematā s comparative advantage Travel to work patterns Local impacts on the economy Development trends Digital Business Areas Gap analysis of economic development in Waitematā Want to know more? Glossary

6 1. INTRODUCTION Local economic development is important to Auckland s overall economy. A strong economy means more jobs and opportunities. It allows for the provision of infrastructure and services and makes Auckland even more liveable. This in turn attracts more skilled workers, business and investment. What is local economic development? Local economic development brings together a range of players to build up the economic capacity of a local area and improve its economic future and quality of life for individuals, families and communities. What is an economic development overview? This economic development overview of the Waitematā Local Board area looks at: a range of indicators on Waitematā s economy the drivers, trends and linkages that influence the local economy major private and public initiatives that will impact on the economy in Waitematā opportunities and issues to growing business and jobs in Waitematā The role of Local Boards The Local Boards of Auckland Council are in a unique position to understand their local economy, work with the local business community, facilitate growth in industries in which their area has a competitive advantage, and advocate or catalyse activities for local economic development. The economic development overview can be the first stage in the creation and implementation of a Waitematā economic development plan, guiding the activities of Auckland Council and other parties for sustainable economic growth. 2. AUCKLAND S ECONOMIC DEVELOPMENT Auckland s Economic Development Strategy (EDS) aims to develop an economy that delivers opportunity and prosperity for all Aucklanders and New Zealand. The five priorities of the EDS, seen as vital to ensuring a thriving, competitive and highly liveable city in the future, are to: grow a business friendly and well-functioning city develop an innovation hub of the Asia-Pacific rim be internationally connected and export driven enhance investment in people to grow skills and a local workforce develop a creative, vibrant international city. The priorities of the EDS are supported by cross cutting themes that underpin Auckland s economic future. These themes, requiring us to think in new ways, are: Creating a sustainable eco-economy where jobs and economic growth are created while reducing costs and environmental impacts over the long term Facilitating an iwi/māori economic powerhouse improving Māori wellbeing and economic development Developing and enhancing an innovative rural and maritime economy Supporting a diverse ethnic economy, integral to Auckland s emergence as a significant city in the Asia-Pacific region. How do we measure economic success? Auckland seeks on an annual basis: 6 per cent increase in exports 5 per cent rise in GDP 2 per cent productivity growth Auckland must escalate its growth rate to achieve our ambitious economic targets. The only viable means of doing so is by rapidly increasing the economic output derived from exporting industries. Clustering of economic activity can improve productivity by better enabling the exchange of ideas, the building of relationships and networks and better connectivity. High growth local firms that have the requisite products and skills to internationalise are crucial to Auckland s future prosperity. 5

7 The EDS has identified the following sectors as key to meeting Auckland s growth goals: Information and communication technologies (ICT) ** Food and beverage processing and manufacturing Marine manufacturing and services Specialised manufacturing including clean technology and advanced materials Health technologies International education ** Tourism ** Business and financial services ** Construction and engineering Screen and creative content ** Biotechnology ** ** strong / growing sectors in Waitematā. 3. PEOPLE & HOUSEHOLDS Highlights Faster growing population than the Auckland average Younger than average population Lower unemployment than regional average Slightly higher proportion of self-employed and business income than regionally Higher median household income than Auckland Very low home ownership Waitematā Auckland % of Auckland Population (2013) 77,136 1,507, % Population growth % 8.5% Median age (2006) Labour force (2013) 46, , % Labour force participation (2013) 72% 67% Households (2013) 31, , % Household income (2006) $73,691 $63,387 Home ownership (2013) 39% 61% Between the 1996 and 2006 censuses, the population increased by 46 per cent, above the Auckland growth rate of 22 per cent, following a number of high density housing developments and growth in overseas student numbers. This trend continued between the 2006 and 2013 censuses where population growth was 23 per cent compared to 9 per cent across the region. The growth was greater in the city centre which saw population growth of 47 per cent over that time. Medium population projections suggest that Waitematā could be home to 125,800 residents by Forty-three percent of Waitematā Local Board residents were born overseas, just above the region overall (37%). Almost two-thirds of this group (63%) had been in New Zealand for less than ten years. In 2013, the Waitematā population was over-represented in the 20 to 34 age group when compared with the regional population. The high student population will contribute strongly to this age profile. In , the median age of residents was 30.5 years, lower than the regional median of 33.9 years. 1 Note, not all data from the 2013 Census was available when completing this report in December Where the 2013 data had not been released to date, the 2006 census data is provided. 6

8 Age structure Waitematā and Auckland (2013) 30% 26.6% 25% 20% 15.8% 19.6% 21.5% Waitemata Auckland 15% 14.0% 12.3% 10% 7.2% 6.9% 6.8% 7.5% 7.3% 7.6% 10.0% 6.6% 8.7% 6.3% 5% 3.9% 3.3% 3.0% 3.2% 0% 0 4 years 5 9 years years years years years years years years years 1.4% 0.5% 85 years and over Source: Statistics New Zealand, Census of Population and Dwellings, 2013 The local population is less ethnically and culturally diverse than Auckland as a whole. Waitematā s population has a higher proportion of people of European ethnicity (63%), a higher proportion of Asian (29%) ethnicity and a lower proportion of people of Pacific (5%) and Mãori (6%) ethnicity than the Auckland average. Ethnic groups Waitematā and Auckland (2013) European % Mãori % Asian % Pacific % Waitematā Auckland Other % Source: Statistics New Zealand, Census of Population and Dwellings, 2013 The labour force participation rate, the proportion of the population aged over 15 that were employed or looking for work, was 72 per cent in Waitematā, above the regional rate (67%). The number of people receiving the unemployment benefit in Waitematā in March 2013 had decreased by 12 per cent from March 2012, a smaller decline than in the region overall. The unemployment rate in the 2013 Census in Waitematā was 7.9 per cent similar to the Auckland region unemployment rate of 8.1 per cent. Unemployment was highest amongst young people, with those aged years having an unemployment rate of 17.8 per cent. 7

9 Unemployment rate by age in Waitematā and Auckland (2013) Unemployment rate by Waitematā Auckland age group (years) % 20.3% % 6.0% % 2.2% Total 7.9% 8.1% Source: Statistics New Zealand, Census of Population and Dwellings, 2013 In 2006, the median household income in Waitematā was $73,691, higher than the regional median of $63,387. Analysis of individual income levels in Waitematā in 2013 compared to Auckland shows that there was a higher proportion of persons earning high incomes (over 100,000 per year). In 2006, twenty-eight per cent of households in Waitematā derived self-employment or business income, compared to 25 per cent across all Auckland households. Home ownership in Waitematā is lower than the regional average; in 2013, 39 per cent of households owned the dwelling they lived in, compared to 61 per cent across Auckland. Evidence suggests home ownership is associated with a stable workforce. 4. SKILLS Highlights Compared to Auckland as a whole, there are relatively more professional and clerical jobs in Waitematā and fewer technicians, trades workers, machinery operators and labourers, reflecting the office based nature of a lot of employment in the CBD. Compared to Auckland as a whole, Waitematā residents are more likely to have a university degree and less likely to not have any formal qualifications. Amongst jobs in Waitematā, the highest demand is in the field of management and commerce, followed by engineering and society and culture. The biggest increase in jobs by area of study over the period was in architecture and building. A skilled workforce drives a strong and resilient local economy and is critical for Auckland s future competitiveness. The New Zealand Qualifications Framework (NZQF) has ten levels which are based on complexity, with level 1 the least complex and level 10 the most complex. All qualifications on the NZQF are assigned one of the ten levels, and fit into a qualification type: a certificate (levels 1-4), diploma (levels (5-6) or degree (levels 7-10). Secondary school qualifications of National Certificates of Educational Achievement (NCEA) are gained at levels 1-3. Forty-four per cent of residents aged 15 years or over had gained a bachelor s degree or higher, much higher than the proportion in the region (25%). Only six per cent of local residents had no educational qualifications compared with 17 per cent across the region. 8

10 Level of highest qualification (2013) No qualification 6% 17% Certificate Level % 41% Certificate Level 4 4% 8% Waitemata Auckland Diploma Level % 9% Bachelor degree (Level 7) 17% 29% Post graduate degree and higher (Level 8-10) 8% 15% 0% 10% 20% 30% 40% 50% Source: Statistics New Zealand, Census of Population and Dwellings, 2013 The National Certificate of Educational Achievement (NCEA) is the national school-leaver qualification and is used as the benchmark for entrance selection by universities and polytechnics. In 2012, 85 per cent of school leavers in the Local Board area for Waitematā had achieved NCEA level 2, which provides the foundation skills required for employment. This means that 154 students in the Local Board area had left school without this basic qualification. Waitematā school leavers with NCEA level 2 or above (2012) Auckland Plan Target 100% European 91% Māori 75% Pacific 77% Asian 87% Middle East, Latin American, African 88% Total for Waitematā 85% Total Auckland 78% Source: In December 2012, 7.5 per cent of youth (aged years) in Waitematā were not in education, employment or training, which was below to the regional NEET rate (13%). NEET status is an important economic and social risk factor indicating disengagement in the labour market and education system. Professional and manager occupations were the most popular occupational categories for Waitematā residents in The occupational profile differs from the Auckland regional profile, with a higher proportion of professionals and a lower share of technicians, labourers and machinery operators and drivers. 9

11 Occupations of residents (2006) Managers 18% 18% Professionals 24% 30% Technicians and trades workers Community and personal services workers Clerical and administrative workers 9% 8% 9% 12% 16% 13% Waitemata Auckland Sales workers 10% 10% Machinery operators and drivers Labourers 3% 6% 7% 9% 0% 5% 10% 15% 20% 25% 30% 35% Source: Census 2006 Higher skilled jobs offer people an improved standard of living and are a critical component in attracting workers to an area. Statistics NZ allocates occupations to skill levels based on the range and complexity of tasks performed in a particular job. The skill level does not relate to the qualifications obtained by an individual, but to the range and complexity of the tasks they do at work. There is a larger proportion of high-skilled jobs in Waitematā (43%) compared to the Auckland average (37%) and smaller proportion of lower-skilled jobs (34% compared to 40%). Managers are the largest occupation group within jobs in the local board area including specialist managers (10%), chief executives, general managers and legislators (4%). Professional occupations account for 36 per cent of jobs, compared to 23 per cent across Auckland. There are a relatively low number of people working as labourers (3%), machinery operators and drivers (2%) and technicians and trades workers (8%) in the local board area. 10

12 Employment by occupation (2012) Managers 18% 22% Professionals 23% 36% Technicians and trades workers 8% 13% Community and personal service workers Clerical and administrative workers 8% 8% 12% 14% Waitemata Auckland Sales workers 10% 11% Machinery operators and drivers 2% 6% Labourers 3% 8% Top 20 occupations by employment (2012) Occupation 0% 5% 10% 15% 20% 25% 30% 35% 40% Jobs Source: Infometrics 2012 % of total jobs in Waitematā 1 Specialist managers 16, % 2 Business, human resource and marketing professionals 16, % 3 Sales representatives and agents 8, % 4 Design, engineering, science and transport professionals 8, % 5 Numerical clerks 7, % 6 Hospitality, retail and service managers 7, % 7 ICT professionals 7, % 8 Education professionals 7, % 9 Chief executives, general managers and legislators 6, % 10 Sales assistants and salespersons 6, % 11 General clerical workers 5, % 12 Health professionals 5, % 13 Legal, social and welfare professionals 5, % 14 Hospitality workers 4, % 15 Engineering, ICT and science technicians 4, % 16 Other clerical and administrative workers 3, % 17 Cleaners and laundry workers 3, % 18 Other labourers 3, % 19 Office managers and program administrators 3, % 20 Arts and media professionals 3, % Sub-total of top 20 occupations 137, % Total jobs 177,347 Note: includes self-employed Source: Infometrics

13 The pattern of job gains and losses by occupation has seen a decline in clerical and sales workers and increases in managers and professionals. Fastest growing occupations Occupation New jobs Specialist managers 2,672 ICT professionals 1,266 Business, human resource and marketing professionals 1,186 Numerical clerks 1,163 Design, engineering, science and transport professionals 1,046 Source: Infometrics Occupations with declining jobs Occupation Jobs lost General clerical workers -782 Personal assistants and secretaries -655 Clerical and office support workers -420 Sales assistants and salespersons -321 Inquiry clerks and receptionists -260 Source: Infometrics Estimates of the types of qualifications currently demanded in Waitematā show that management and commerce is in the highest demand, with 28 per cent of jobs requiring a qualification in this field, followed by engineering (16%). Forty-three per cent of jobs require a degree level qualification. Demand grew most strongly between 2007 and 2012 for architecture and building qualifications. Employment by level of qualification and field Degree Diploma Certificate % Field NZQA Level 7+ Level 5-6 Level 4 Level 1-3 Total Change Architecture and building 4,158 1,246 1,953 2,437 9, % Natural and physical sciences 3, ,711 6, % Engineering and related technologies 10,439 3,110 5,473 8,077 27, % Education 4, ,986 9, % Management and commerce 17,890 5,655 4,344 19,133 47, % Information technology 4, ,361 7, % Society and culture 12,593 2,778 1,707 8,255 25, % Health 6,182 1, ,372 11, % Food, hospitality and personal services 727 2,236 1,930 4,957 9, % Creative arts 5, ,006 9, % Agriculture, environmental and related studies 1, ,399 3, % Total 70,800 19,658 18,289 57, , % Source: Infometrics 12

14 5. LOCAL ECONOMY Highlights At $22.5 billion in 2012, Waitematā has the largest local GDP of Local Board areas. One in four of the region s jobs are in Waitematā. Over 50 per cent of the region s professional, scientific and technical services and information media and telecommunications jobs are in Waitematā and over 60 per cent of jobs in financial and insurance services are here. Sectors that compete internationally are strongly represented including: ICT; biotechnology; tourism; international education; and creative industries. Each contributes a greater share of the Waitematā economy than they do regionally. While there is a strong base of small businesses in the area, Waitematā is home to many large businesses, head offices and multinationals within the CBD. Half of employment is in firms with over 100 employees. Waitematā Share of Auckland GDP (2012) $22.5 billion* 28.4% Jobs (2012) 154, % Businesses (2011) 24, % * adjusted to 2012 $ In 2012, GDP in Waitematā was $22.5 billion. The local economy grew by four per cent from , compared to growth in Auckland (3.2%) and New Zealand (2.3%). The Waitematā economy has outperformed the Auckland region over the ten years to 2012, with average annual growth of 3.4 per cent, compared to 3.0 per cent in the Auckland region. Employment growth over that time has matched growth across the region. GDP and employment growth Index Base year 2002 = Waitemata GDP Waitemata Employment Auckland GDP Auckland Employment Source: Infometrics, Statistics NZ Waitematā s future economic performance depends on its combination of a sufficiently diversified industrial based and clusters of sectors that have the potential to achieve high rates of productivity and export growth. The Waitematā economy has a different profile to that of Auckland as a whole with concentrations in information, media and telecommunications, finance and insurance, and professional, scientific and technical services. These sectors make up 46 percent of the Waitematā economy, but only 13 percent of the rest of the Auckland economy (excluding Waitematā). This reflects the fact that the area contains the CBD which is New Zealand s primary financial centre and home to the New Zealand head office of a number of large multi-national companies. 13

15 Waitematā s industrial mix by GDP (2012) Mining Manufacturing Construction, 1% Other services, 1% Arts and recreation services, 1% Ownership of owner occupied dwellings 7% Unallocated 10% 2% Wholesale trade 4% Retail trade 3% Accomodation and food services 2% Transport, postal and 4% warehousing Health care and social assistance 3% Education and training 2% Public administration and safety Administrative and support services, 1% 2% 2% 19% Information media and telecommunications Professional, scientific and technical services 13% Rental, hiring and real estate services 8% 14% Financial and insurance services Source: Infometrics Auckland s industrial mix by GDP (2012) 14% Agriculture, forestry and fishing 1% Unallocated Mining 1% Manufacturing Ownership of owner occupied dwellings 10% 14% Other services Arts and recreation services 1% 2% 7% 2% 3% Electricity, gas, water and waste services Construction Health care and social assistance Education and training 5% 3% 7% Wholesale trade Public adminisatration and safety Administrative and support services 3% Professional, scientific and technical services 2% 7% Rental, hiring and real estate services 7% 7% Financial and insurance services 9% 6% 5% Information media and telecommunications Retail trade Accommodation and food services 1% Transport, postal and warehousing Source: Infometrics 14

16 Top industries in Waitematā by GDP & employment (2012) Information media and telecommunications 6.9% 19.3% Financial and insurance services 10.8% 13.5% Professional, scientific and technical services 13.3% 21.4% % GDP % Employment Rental, hiring and real estate services 1.9% 7.7% Transport, postal and warehousing 4.1% 3.6% 0% 5% 10% 15% 20% 25% Source: GDP data Infometrics; Employment Statistics NZ Employment in Waitematā increased by an average of 1.8 per cent pa in the ten years from , the same as the Auckland rate and above the 1.4 per cent in New Zealand. During this period, Auckland job numbers increased the most in professional, scientific and technical services (+10,440), finance and insurance services (+5,380), and accommodation and food services (+3,010), and declined the most in manufacturing. 15

17 Employment by sector and Employment 2012 Waitematā Change in employment Average annual employment growth rate Auckland Average annual employment growth rate Agriculture, forestry and fishing % 23.1% -2.0% -1.5% Mining % 30.0% 2.6% 39.9% Manufacturing 2,930-1, % -5.8% -1.3% -0.3% Electricity, gas, water and waste services % -1.1% 0.8% -4.4% Construction % -0.8% 3.6% 0.8% Wholesale trade 7, % 0.3% 0.7% 1.4% Retail trade 8, % 0.2% 0.7% 1.5% Accommodation and food services 13,520 3, % 2.4% 3.2% 5.9% Transport, postal and warehousing 5, % -1.1% 0.9% 1.5% Information media and telecommunications 10, % 6.8% 0.1% 8.4% Financial and insurance services 16,610 5, % 6.7% 3.2% 8.1% Rental, hiring and real estate services 2, % 4.0% 2.4% 1.7% Professional, scientific and technical services 33,000 10, % 5.1% 4.5% 2.5% Administrative and support services 14,070 2,740 1, % 12.8% 2.7% 3.8% Public administration and safety 6, % 10.3% 3.4% 3.1% Education and training 10,690 1, % -1.5% 2.8% 1.6% Health care and social assistance 9,800 1, % -2.3% 3.4% 2.2% Arts and recreation services 3, % 0.3% 1.8% -0.8% Other services 4, % 2.6% 2.0% -0.3% Total 154,400 25,750 5, % 3.7% 1.9% 2.2% Source: Statistics NZ Information media and telecommunications Information media and telecommunications contributed $4.3 billion (19%) to the Waitematā economy in 2012 and provided 7% of employment in the area. Fifty-seven per cent of Auckland s employment within this sector is located within Waitematā. The sector has grown slowly over the period within Waitematā. Professional, scientific and technical services Professional, scientific and technical services is the largest employment sector in Waitematā. It contributed $3 billion (13 per cent) to Waitematā s GDP in 2012 and has held a steady share of the local economy since Professional, scientific and technical services jobs account for 21 per cent of local employment. One in two jobs in the sector are in Waitematā. Financial and insurance services The financial and insurance services sector contributed $3 billion to the Waitematā economy in It is a significant source of employment, representing 11 per cent of local jobs and has seen steady growth over the last decade. Internationally competitive and platform technology sectors Auckland has comparative advantage in a number of industry segments that compete internationally. Several of these are strongly represented within Waitematā, with ICT, international education and tourism contributing a greater share of the Waitematā economy than they do regionally. Waitematā s strength in biotechnology underpins growth in other sectors, including food and beverage, health technologies and pharmaceuticals. The creative sector underpins the film, television, animation and publishing sectors amongst others. 16

18 Development of the ICT and digital media precinct in the Wynyard Quarter is expected to strengthen this key sector in Waitematā and across the region. Internationally competitive sectors (2012) GDP 2012 $m % of economy Employment % of total jobs in Waitematā ICT 4, % 16, % Tourism % 15, % Food and Beverage % 2, % Construction and Engineering % 10, % Marine % % Niche Manufacturing % 1, % Health Technologies % % International Education % 2, % Total (net) 6, % 50, % Platform technology sectors (2012) GDP 2012 $m % of economy Employment % of total jobs in Waitematā Advanced materials 0 0% 2 0.0% Biotechnology % 2, % Creative 1, % 15, % Note: Employment includes employed and self employed Source: Infometrics, Auckland Council Estimates as of August Some sector definitions are currently under review and therefore estimates are subject to change Industry growth The fastest growth rates for GDP ranged from relatively small sectors in mining ($101 million GDP in 2012), to large sectors including financial and insurance services ($3 billion), professional and technical services ($3 billion), electricity, gas, water and waste services ($363 million) and information media and telecommunications ($4.4 billion). The location of company headquarters in the CBD will mean many sectors not associated with central Auckland feature in the data. Fastest growing industries by GDP Industry Average pa change Mining 41.4% Financial and insurance services 6.4% Professional, scientific and technical services 4.1% Electricity, gas, water and waste services 3.1% Information media and telecommunications 2.9% NB: This data relates to GDP growth rates, not the size of the sector. Weakest performing industries by GDP Industry Source: Infometrics Average pa change Retail trade -0.6% Wholesale Trade -1.2% Administrative and support services -2.7% Manufacturing -7.5% Note excludes industries with GDP < $20m. Source: Infometrics 17

19 Top 20 industries by employment Rank Industries Jobs % of total jobs in Waitematā 1 Management and other consulting services 8, % 2 Cafes, restaurants and takeaway food services 8, % 3 Tertiary education 7, % 4 Legal and accounting services 7, % 5 Hospitals 7, % 6 Depository financial intermediation 6, % 7 Employment services 6, % 8 Computer systems design and related services 6, % 9 Architectural, engineering and technical services 5, % 10 Telecommunications services 5, % 11 Health and general insurance 3, % 12 Other administrative services 3, % 13 Accommodation 3, % 14 Public order and safety services 2, % 15 Other machinery and equipment wholesaling 2, % 16 Auxiliary finance and investment services 2, % 17 Advertising services 2, % 18 Clothing, footwear and personal accessories retailing 2, % 19 Building cleaning, pest control and gardening services 2, % 20 Scientific research services 1, % Total top 20 industries 96, % All other industries 57, % Total employment 128,650 Source: Source: Statistics NZ Businesses in Waitematā There were 24,915 businesses in Waitematā in The Local Board area is home to many large businesses and multi-nationals. This is shown by the average number of employees per business in Waitematā of 6.2 compared to 4.0 regionally. When self-employed and owner operated businesses are discounted the average business size is 17.5 employees compared to 12.5 regionally. The area has one of the highest numbers of employees per businesses, after Mangere-Otahuhu and Maungakiekie-Tāmaki. While 95 per cent of businesses in Waitematā are SMEs (employing less than 20 people), only 25 per cent of jobs in the area are within SMEs, meaning 75 per cent of jobs are within large firms (employing more than 20 employees). Almost half of employment is in firms with over 100 employees. Growth in the number of businesses in Waitematā averaged 1.9 per cent pa from , below the Auckland wide rate (2.7%). 18

20 Size of businesses in Waitematā (2012) Per cent of firms / per cent of jobs 70% 60% 50% 65% SME sector Firms Employment 49% 40% 30% 20% 10% 0% 0% 0 (Owner Ops) 20% 15% 11% 11% 8% 5% 6% 5% 3% 1% 1% 1 to 5 6 to 9 10 to to to Source: Statistics NZ Knowledge-intensive industries In 2012, knowledge-intensive industries, which are defined based on the qualifications and occupations of employees in these industries, comprised 54 per cent of employment in Waitematā, significantly higher than in Auckland which had 36 per cent of jobs in knowledge-intensive industries. Waitematā s comparative advantage The following diagram shows industries in which Waitematā has a comparative advantage, based on industries comprising a larger share of the Waitematā economy compared to Auckland. The industries are focused around finance and insurance. Points to note are: Several important sectors grew significantly in size from : o o o Insurance and superannuation funds Finance Telecommunications, internet and library services Slower growing industries from were information media services and professional, scientific and technical services Auxiliary finance and insurance services and administrative and support services declined slightly over the period. 19

21 Industries concentrated in Waitematā 2012 Location Quotient: Industry GDP share in Waitemata compared to Auckland average 3.0 Electricity and Gas Supply 2.5 B A A. Fast Growth Insurance and Superannuation Funds Finance C 2.0 Telecommunications, Internet and Library Services B. Low / Moderate Growth Information Media Services Professional, Scientific and Technical Services 0.5 C. Decline Auxiliary Finance and Insurance Services Administrative and Support Services 0.0-2% 0% 2% 4% 6% 8% 10% 12% Annual average percent change GDP Source: Infometrics Travel to work patterns Travel to work patters for Waitematā reflect the fact that the CBD is located within the area. In 2006, 70 per cent of Waitematā residents also worked within the area. Other employment destinations for residents were Albert-Eden (6%) and Maungakiekie-Tāmaki (6%). Waitematā is a major employment destination, attracting workers from across Auckland: Albert-Eden (39 % of residents travel to jobs in the Waitematā Local Board area) Orakei (34%) Puketapapa (26%) Whau (25%) Devonport-Takapuna (24%) Kaipatiki (23%) 20

22 From Waitematā economic development overview 2013 TRAVEL TO WORK PATTERNS BETWEEN LOCAL BOARD AREAS (2006) LESS THAN 1% 1-5% 6-10% 11-20% 21-30% 31-40% RESIDE AND WORK IN THE LOCAL BOARD AREA To Local Board Area Rodney Hibiscus and Bays Upper Kaipatiki Devonport- Henderson- Waitakere Harbour Takapuna Massey Ranges Waiheke Waitematā Whau Albert- Eden Puketap apa Orakei Maungakiekie- Tāmaki Howick Mangere- Otahuhu Otara- Manurewa Papakura Franklin Papatoetoe Rodney 58% 6% 8% 3% 3% 5% 1% 8% 2% 2% 1% 2% 1% Hibiscus and Bays 2% 38% 17% 8% 10% 1% 14% 1% 2% 1% 3% 1% 1% Upper Harbour 2% 4% 37% 11% 9% 6% 16% 3% 3% 1% 4% 1% 1% 1% Kaipatiki 1% 2% 12% 35% 13% 1% 23% 1% 3% 1% 4% 1% 1% 1% Devonport- Takapuna 2% 9% 11% 40% 1% 24% 1% 3% 1% 4% 1% 1% 1% Henderson- Massey 2% 4% 2% 1% 38% 2% 19% 11% 6% 2% 1% 6% 1% 2% 1% Waitakere 1% 2% 1% 1% 16% 21% 20% 14% 7% 2% 1% 7% 1% 3% 1% Waiheke 1% 1% 71% 18% 1% 2% 1% 2% 1% 1% 1% Waitematā 2% 2% 2% 2% 70% 1% 6% 1% 2% 6% 1% 2% 1% Whau 2% 1% 1% 8% 2% 25% 28% 10% 4% 1% 9% 1% 4% 2% 1% Albert-Eden 2% 1% 2% 2% 39% 3% 28% 2% 3% 9% 2% 3% 2% 1% Puketapapa 1% 1% 1% 2% 26% 5% 13% 20% 2% 15% 2% 6% 3% 1% Orakei 1% 1% 1% 1% 34% 1% 7% 1% 27% 14% 3% 3% 3% 1% 1% Maungakiekie- Tāmaki 1% 1% 1% 1% 21% 1% 7% 2% 7% 38% 6% 7% 4% 2% 1% Howick 1% 1% 1% 12% 1% 3% 1% 3% 17% 41% 6% 9% 3% 1% 1% Mangere- Otahuhu 1% 1% 10% 1% 4% 2% 2% 21% 6% 34% 10% 5% 1% 1% Otara- Papatoetoe 1% 1% 8% 1% 2% 1% 2% 16% 12% 15% 30% 8% 2% 1% Manurewa 1% 7% 1% 2% 1% 1% 15% 9% 11% 16% 26% 6% 2% Papakura 7% 2% 1% 11% 6% 7% 10% 9% 38% 5% Franklin 5% 1% 1% 7% 6% 4% 6% 4% 8% 54% Source: Census

23 6. LOCAL IMPACTS ON THE ECONOMY Highlights Several key plans and major projects will have an impact on Waitematā and particularly on the CBD and waterfront areas Connectivity is a key determinant of a local area s economic competitiveness. We need to ensure that it is easy and fast for businesses in Waitematā to access knowledge networks and connect with skilled workers, customers and suppliers. This is particularly important for Waitematā s knowledge based and international businesses. There are a number of major longer term projects that will also have a big impact on the Waitematā Local Board Area including the City Centre and Waterfront Masterplans and City Rail Link and proposed intensification around the new rail link stations. These projects will shape the way people travel to work, move around and use the CBD and surrounding areas. Development trends There were 59 new dwellings consents in Waitematā issued in 2012, which was 1.5 per cent of the 3,953 issued in the Auckland region. Residential consents declined in line with that of the region from and broadly tracked the increase in the region after that. The CBD is one of the areas prioritised for growth in the Auckland Plan and is expected to intensify its land use and house a much larger population over coming years. New dwellings consented ( ) Index Base Year 2006 = Waitematā 60 Auckland Source: Auckland Council, Statistics NZ There were 46,876 sqm of industrial and commercial building consents issued in Waitematā in 2012, which was 8 per cent of the non-residential building consents total of 596,955 sqm issued in the Auckland region. After much stronger growth from the level of activity fell sharply back towards the region wide trend with the onset of the global financial crisis. 22

24 Non-residential building consents consented (floor area) ( ) Index Base Year 2006 = Waitematā Auckland Source: Auckland Council, Statistics NZ Digital Ultrafast Broadband (UFB) is a nine year central government programme to deliver a fibre-optic broadband network past every property in urban New Zealand. The map below shows the current status of the roll out of ultrafast broadband in the Waitematā Local Board area. 23

25 More information can be found on the Auckland Council website at: RBI: ndinitiative.aspx UFB: dbandinauckland.aspx 24

26 7. BUSINESS AREAS The 18 main business areas in Waitematā accounted for 93% of employment in Waitematā, with the CBD housing 60% of jobs. The 6 largest business areas accommodate 82% of jobs in the area. Employment in business areas in Waitematā (2012) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Business area Employment profile 2012 There were 92,777 people employed in the CBD 2012 which was 60 per cent of the Waitematā employment total. Jobs were concentrated in: CBD Professional, scientific and technical (20,509 jobs) Finance and insurance (14,212) Administration and support services (9,632) Accommodation and food (9,232) Newmarket Employment in Newmarket was 14,759 people in 2012 which was 10 per cent of the Waitematā employment total. Jobs were concentrated in: Professional, scientific and technical (3,949 jobs) Retail trade (2,783) There were 7,660 people employed in Uptown in 2012 which was 5 per cent of the Waitematā employment total. Jobs were concentrated in: Uptown Professional, scientific and technical (1,714 jobs) Information, media and telecommunications (840) Administration and support services (766) There were 6,243 jobs in Newton/Grafton in 2012 which was 4 per cent of the Waitematā employment total. Jobs were concentrated in: Newton/Grafton Professional, scientific and technical (1,470 jobs) Information, media and telecommunications (1,254) Wholesale trade (709) 25

27 Business area Employment profile 2012 There were 3,122 people employed in Parnell North in 2012 which was 2 per cent of the Waitematā employment total. Jobs were concentrated in: Parnell North Professional, scientific and technical (1,529 jobs) Wholesale trade (397) Ponsonby Road businesses employed 2,504 people in 2012 which was 2 per cent of the Waitematā employment total. Jobs were concentrated in: Ponsonby Road Accommodation and food services (752 jobs) Retail trade (372) Professional, scientific and technical (290) Note: Business areas defined based on draft Auckland Unitary Plan Employment based on FTEs. Source: Statistics NZ 26

28 8. GAP ANALYSIS OF ECONOMIC DEVELOPMENT IN WAITEMATĀ The Auckland Region aim: Develop an economy that delivers opportunity and prosperity for all Aucklanders and New Zealand. The Waitematā Local Board aspires for a dynamic and attractive commercial hub for Auckland well connected to successful centres in the city fringe. Auckland region Waitematā Where we want to be Current situation Local options for future exploration 1 Grow a businessfriendly and wellfunctioning city The area is an economic powerhouse for Auckland and contains New Zealand s premier business centre. BID partnerships in Uptown, Heart of the City, K Road, Newmarket, Parnell and Ponsonby. Support BIDs in developing local projects that will maximise economic benefits. Support the pre-bid establishment work by the Grey Lynn Business Association (GLBA). Ultrafast Broadband widely available. Promote the benefits of ultrafast broadband to local businesses. Pressure to convert existing industrial land to other uses will further increase the scarcity of this resource. Development of Wynyard Quarter. Preparation for building of City Rail Link to ensure disruption minimised and business and placemaking benefits maximised. City Centre and Waterfront Masterplans will shape how people move around and live and work in the area. Preparations for building the City Rail Link are being progressed. Develop initiatives to support city fringe strengths in high value sectors such as professional services, healthcare and social assistance, creative industries and ICT. City fringe area has strengths in professional services, healthcare and social assistance, creative industries and ICT. 2 Develop an innovation hub of the Asia-Pacific rim The Waitematā area has high numbers of jobs in knowledgeintensive industries. Firms can access centres that offer specific infrastructure for Auckland s high technology industries such as the Wynyard ICT and digital media cluster. Development of Wynyard Quarter Innovation Precinct. Define pathways for firms in Waitematā to Auckland and national innovation programmes that assist commercialisation and business growth Within the regional and national innovation framework, support innovation that strengthens sectors in which firms in Waitematā have a competitive advantage. 27

29 3 Become internationallyconnected and export driven ATEED s support of the growth and competitiveness of businesses includes: o Business events, awards and networking o Business mentors programme Facilitating business capability and research and development investment. Many large businesses in the area, at a scale to be internationally competitive. Support businesses with international potential to build up the skills and capacity to enable them to enter global markets and focus on global growth opportunities. Grow Auckland s creative economy, in particular digital content, TV, film, arts and ICT. Grow Auckland s biotechnology sector as a platform for growth in other sectors, including food and beverage, health technologies and pharmaceuticals. 4 Enhance investment in people to grow skills and a local workforce Waitematā has strengths in several of the sectors in which Auckland is internationally competitive (ICT, creative industries, tourism, international education and biotechnology) and the growth of these sectors will be important in delivery of the Auckland Plan. Well educated and skilled local workforce, a high proportion of residents have a university degree. Presence of several tertiary education providers. Identify critical skill shortages and create a better match between skills supply and skills demand and improve the relevance and responsiveness of educational programmes. Tailor programmes to meet future demand. Build the relationship between tertiary providers and business. Champion education, skills and career development of youth in the City Fringe to find employment within Auckland. 5 Develop a vibrant, creative international city Great amenities for locals and visitors, including access to waterfront and Waitematā harbour, theatres and concert venues, Auckland Art Gallery, War Memorial Museum, Voyager Maritime Museum. Excellent range of retail outlets, cafés, restaurants and bars available. Strong and varied programme of cultural events and festivals. Further development to streetscapes and public spaces to provide an attractive public realm for residents and visitors. Consider opportunities to enhance the quality and mix of retail and entertainment offerings in the City Fringe. Support development of tourist infrastructure and hospitality to capitalise on the presence of the CBD and tourist attractions. Next iteration of the Visitor Plan will provide stronger direction for the development of the city centre and tourism offering. 28

30 Cross cutting themes Sustainable eco economy Iwi-Māori economic powerhouse Innovative rural & maritime economy Diverse ethnic economy The Auckland Plan has highlighted that to achieve job and economic growth while reducing costs and environmental impact over the long term requires new thinking and a collaborative approach from business, communities, industry, government and Auckland Council. A significant difference can be made through local demonstration and facilitation of sustainable economic practices and there are strong opportunities for collaboration around sustainability. Deliver integrated transport system Identify and work with iwi to support international commercial opportunities from the Māori asset base in Auckland and support the innovative and entrepreneurial capacity of iwi/māori Areas for future consideration include skill development and labour market participation for Māori and support for local iwi to leverage Treaty settlements to enable economic development for Māori. Waitematā has a strong marine sector and plays an important role in the supply chain for value added production for marine sector. Support development of the international education sector through aligning international marketing efforts, building business capability and leveraging alumni. The city centre will be important in how Auckland will compete in the international education market in the Asia-Pacific region. Waitematā has a diverse ethnic population, with a high number of international students. New migrants are an important foundation for Auckland s future success and the creation of an innovative, export-focused and internationally connected city. The successful settlement of new migrants is an important foundation for Auckland s future prosperity and the creation of an innovative, export-focused and internationally connected city. 29

31 9. WANT TO KNOW MORE? More information about the content of this report is available: Report cards on Auckland Annual economic profile 2012: Waitematā. Prepared by Infometrics for Auckland Council. GLOSSARY Australian and New Zealand Standard Industry Classification 2006 (ANZSIC 2006) This is the official industrial classification used by Statistics NZ. The classification system aims to reflect the structure of Australian and New Zealand industries and enable comparability with other countries statistics. Business areas Business areas were defined as part of the work undertaken in preparation of the draft unitary plan and are based on business zoned land. In some cases the business areas cross Local Board boundaries and where this occurs the business areas was allocated to a Local Board based on the location of the area centroid. Employment Head count of salary and wage earners sourced from taxation data. Unless stated, does not include self-employed. GDP Gross Domestic Product is the total market value of goods and services produced in the Local Board area, minus the cost of goods and services used in the production process. GDP for each Local Board was estimated by Infometrics Ltd using 1995/96 prices and a top down approach. These have been converted to 2012 prices by an inflation multiplier. Labour force participation The labour force is defined as all persons aged 15 years and over who are looking for work, or are employed, either full time, part time or casually. Location quotient Location Quotient is a way of quantifying how concentrated an industry is in an area (such as a Local Board area) compared to a larger geographic area (such as Auckland region). Participation rate The proportion of the total population aged over 15 years that are in the labour force. Population The population for the Local Board area is the usual resident population count from the 2013 Census of Population and Dwellings. This figure may be lower than previously published estimated 2012 population figures from Statistics New Zealand. Productivity The NZ Productivity Commission defines productivity as the efficiency with which resources such as labour and capital are converted into outputs of goods and services. Unemployment rate The unemployment rate is the number of people aged 15 years and over who did not have a paid job, were available for work, and were actively seeking work, as a percentage of the labour force. Note, unless otherwise stated, definitions are based on those provided by Statistics NZ. 30