AmCham New Zealand Releases Results Of 2024 Survey Of US Companies Operating In New Zealand

Auckland, New Zealand – 10 Dec – The American Chamber of Commerce in New Zealand (AmCham) has released the results of its 2024 survey of US companies operating in New Zealand, providing valuable insights into the current business environment and investment trends. The survey, which includes responses from a diverse range of companies, highlights several key issues affecting businesses and offers recommendations for improvement.

Key Findings:
The survey reveals that the economic climate is the most significant challenge for businesses in New Zealand, with concerns about the recession, low economic growth, and the overall cost of doing business. For example, respondents from the financial services sector, expressed concerns about the impact of the recession on their operations. Similarly, companies in the manufacturing sector highlighted the challenges posed by low economic growth and increased costs.

Other major issues include regulatory challenges, such as the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regulations. Talent shortages were also a significant concern, with respondents from the IT sector, noting difficulties in attracting and retaining skilled talent due to immigration barriers and visa approval processes.

Market demand was another critical issue, with companies in the entertainment sector facing competition from overseas markets. Infrastructure and logistics challenges were highlighted by respondents from the transport and logistics sector, who reported disruptions in international freight and high local transport costs. The cost of living was also a concern, impacting sales and industry demand, as noted by companies in the healthcare sector.

Government fiscal constraints and exchange rate fluctuations were additional challenges, with respondents from various sectors mentioning the impact of a weak New Zealand dollar on their business operations. Inflation was another significant issue, affecting costs and pricing strategies, as highlighted by companies in the consulting services sector.

Investment Trends:
The survey indicates mixed investment trends, with some companies considering expanding their investment in New Zealand, while others are either downsizing or maintaining their current level of investment. For instance, respondents from the biotechnology and life sciences sector expressed interest in expanding their operations, while companies in the aerospace and defence sector were more cautious about increasing their investment.

Barriers to Investment:
Several barriers to investment were identified, including the regulatory environment and compliance costs, which were particularly challenging for companies in the financial services sector. The lack of strategic engagement at a governmental level was another barrier, as noted by respondents from the IT sector. Limited market size and workforce pool were concerns for companies in the manufacturing sector, while high costs of raw materials and logistics were highlighted by respondents from the transport and logistics sector.

Recommendations for Improvement:
To support greater inward investment into New Zealand, survey respondents suggested several changes, including harmonisation of policy and regulation with Australia, which would benefit companies in the financial services sector. The development of local capital markets was another recommendation, particularly relevant for companies in the IT and biotechnology sectors. Government policies supporting rapid digitisation were suggested by respondents from the consulting services sector, while improvements in infrastructure and capacity around tourism were highlighted by companies in the transport and logistics sector. Streamlined regulatory processes and incentives for international talent were also recommended to address the talent shortages faced by companies in various sectors.

In the new year AmCham will be talking with the government on the above findings.

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