GUEST BLOG: Waikato really means business

Guest blog by Chris Simpson, a Waikato-based strategy consultant with a background in economics, research, economic development and international trade.

Shhhh…..want to know a secret?

There’s a group of aspirational business, leaders and thinkers who have set down a strategy to promote the Waikato. It’s encapsulated in their strategy document - Waikato Means Business - which is a 20-year economic development strategy

The strategy sets two 20-year focus goals of:

• Increasing median household incomes to above the New Zealand average
• Increasing annual value added per capita growth to 2.8 per cent so that Waikato is in the upper third of regions for economic performance.   

Based on the aspirations of Waikato Means Business, the growth of the Waikato’s economy since 2001 has seen it grow from $25b to $50b. So, the opportunity really is just south of the Bombay Hills.

And those aspirations of these Waikato leaders reflect the value-add to NZ Inc and a very clear focus that the Waikato knows where its opportunities and, more importantly, strengths are.

The high-value manufacturing that the Waikato’s known for is underwritten by a strong and innovative agricultural technology and an aviation industry which many people don’t think of when it comes to the Waikato.

The Waikato is naturally a logistics hub as well, thanks to its centrally located place in the North island.

Primary production and manufacturing, all of which are by nature bulky exports, are transported via major sea ports at Tauranga and Auckland. And the Waikato can and is housing those goods for distribution. And the $100 million Waikato Expressway will of course become the corridor for the Waikato region – meaning the Waikato’s comparative advantage will be in logistics.

And sticking to Waikato means business, the added-value dairy and food products created in the region are further supported through the likes of the work done at New Zealand’s only true innovative hub, and that’s to be found at Innovation Park at Ruakura.

And, while the Waikato is the fourth largest contributor to the New Zealand economy and is home to over 9 percent of the nation’s workforce, the quiet revolution is happening in its major city - Hamilton.

Hamilton has some 90,000-people working there with an economy of $8b. Some 2006 jobs were created in Hamilton in the previous year, while a further 464 and 928 jobs were created in Waipa and Waikato districts.

This represents a significant improvement – employee numbers in Hamilton were flat from 2009 to 2014, showing little or no growth. But, look at where the growth in jobs is happening. The professional sector makes up over 27.5% of employment compared to 23% of NZ.

Of the 90,000 employed, 38% are in knowledge-intensive roles compared to 32% for NZ and 36% for Auckland. Hamilton is nearly as big as Wellington with 167,000 people compared to 212,000 for Wellington. (Hamilton GDP grew by 4% last year while Wellington was 2.2%.)

The big opportunity for the Waikato is the expressway to Auckland – due to be completed in about 15 months. 1.6million people will get closer to 160,000 people. When Auckland people finally discover how smart Hamilton and the Waikato is, they may take that as an opportunity to invest. Just look at how the Ports of Auckland is investing by building its inland hub at Horotui – just north of Hamilton.  And, Tainui Group Holding's big inland port and Hamilton's airport hub makes it the city of the future.

The Waikato is a key part of the ‘golden triangle’ connecting Hamilton, Auckland and Tauranga in the Bay of Plenty – all home to around two million people.

The Waikato is the place where you can derisk your investment on so many levels. But, you may want to keep it a secret and take the opportunity of first mover advantage.