Hastings and the Hawke’s Bay region are in a much stronger economic position than other parts of the country recovering from the effects of COVID-19, but there are challenges ahead. 

That’s according to Infometrics senior economist and director Brad Olsen, who was in Hastings last week, the guest speaker at a Focus on Business breakfast hosted by Hastings District Council.
More than 200 people attended the session held at Functions On Hastings and listened to Mr Olsen’s overview of how the region was faring post-COVID.

“Here we are seeing that spending levels are a lot higher than elsewhere, there’s a lot of local investment and the number of people needing support is falling. Card spending in Hastings was up 5.3 per cent per annum in the first three months of 2021, one of the strongest rises nationally, as locals continue to back local businesses and others from outside the region explore and spend.

“This all means there is a better job market, upbeat businesses and households – painting a good economic picture overall,” he said.

The positive momentum and local support would go a long way to keeping things moving but the challenges were increasing.

“Supply chain issues – getting goods into and out of New Zealand – are key. Napier Port has been able to push through, but a rising number of businesses are starting to feel the bite of lower import levels and there are concerns about lower export levels moving forward. It’s harder to get some goods and stock, and getting our premium products into overseas markets is also becoming more difficult.

“And there will have to be thinking about how to deal with the worker shortage, particularly skilled workers and those needed for the horticulture industry.”
Of increasing importance was the need to realise the opportunities arising as the New Zealand economy changed, he said.

“How do districts like Hastings capitalise on some of the gains that, for example, have been made in domestic tourism and make that long-term.

“And with people looking for affordable housing and lifestyle options, they are moving to the region and bringing new skills with them.

“This brings a wider pool of talent, and the opportunity for innovation like you are seeing with the advanced technology and engineering being used by companies like Rockit.
“You can either and sit and watch the economy changing or you can grasp the opportunities and lock them in for local benefit.”

Hastings mayor Sandra Hazlehurst said Mr Olsen’s session had left people buzzing.

“It was fantastic – it confirmed what we are seeing and feeling, that Hastings is performing strongly across a number of sectors. And the biggest indicator of that was our strong spending data, which shows the stimulus spending is filtering down to reach our local businesses.

“We are going to continue to experience challenges over the next 12 to 18 months, but we are well placed to weather those challenges.”

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