Public Interest Journalism funded through NZ On Air
Confidence in Christchurch as a place to do business is increasing, but still low, according to a recent study.
Te Mauri o Ōtautahi, The Pulse of Christchurch 2022 report, conducted by Research First, found only 26 per cent of businesses surveyed believed the city was headed in the right direction.
Only 23 per cent of businesses trust the city's leaders to "do the right thing for the city and its communities".
Canterbury Employers' Chamber of Commerce chief executive Leanne Watson says there is optimism about conditions in the city, however she acknowledged the difficulties businesses are facing across the country.
She said didn't know whether a lack of business confidence was specific to just Christchurch.
"The region is doing pretty well, largely due to having a diverse economy that's not reliant on just one or two sectors, such as Queenstown."
"A diversity of industry makes for resilience in an economy. We've got manufacturing, agritech, dairy, high-tech food and fibre and new and emerging enterprises like aerospace industries."
"Right now we know it's incredibly difficult with inflation and escalating costs. We don't expect business conditions to improve and we're expecting most of that to remain until the end of the year," she said.
Watson said the city had endured significant hardship over the last decade, and that it was usual to focus on what the city had yet to overcome. The report had a similar finding, that we are more likely to notice what is missing, termed the "Zeigarnik effect".
"Quite often we see people that have been through all of that adversity focus on what we haven't done yet rather than what we have," said Watson.
The report noted more people would recommend Christchurch as a place to relocate a business to, as opposed to starting one. It found only about a third of respondents believed innovators and entrepreneurs were supported in the city.
Dawn Aerospace, a New Zealand-Dutch aerospace company, is one example of a fledgling company in Christchurch that had relocated from Auckland.
The company's chief executive James Powell spoke highly of Christchurch as a place for his business, saying the move was due to the city being an easier place to do business and a more affordable place for staff to live.
Powell said, "being close to the University of Canterbury is also important for us due to the exceptional engineering school there. There is a good amount of industry here."
"I expect Dawn being a startup and in a relatively unique line of business means we are not facing the same types of challenges as other businesses. Overall, for Dawn, the outlook is very strong," he said.
The company has grown its staff by about 50 per cent this year, Powell said, and expects this growth rate will continue.
While some are optimistic about Christchurch, many still believe the city "was in better shape before the earthquakes". The report concludes opinion about the South Island's largest city is divided, resulting in a metaphorical "tale of two cities".
Volumes were lighter as investors are thinking more about the summer holidays.