New private sector investment is already being planned or in development in the city, including the construction of the New Zealand International Convention Centre, new hotels, restaurants and visitor attractions. This is also supported by an increase in direct air route connections and cruise ship visits into the city, with further developments underway.
An additional NZ$2.3 billion of private sector investment is required between now and 2021 to service the extra demand for goods and services caused by the projected growth in Auckland’s visitor economy.
Investors looking for opportunities in Auckland's ICT sector will integrate with key benefits the city has to offer:
Lower market rates and fewer employee add-ons ensure Auckland's workforce holds a cost advantage over other developed countries such as Japan, the United States, the United Kingdom and Australia.
High quality workforce
Auckland software developers hire locally trained PhD and other post-graduate specialists with skills commonly sought in Silicon Valley, but without having to meet Silicon Valley salary expectations. Auckland's universities produce world-class mathematics, statistics and hard sciences graduates.
Auckland's software developers and designers lead the world in their creative thinking and originality. The broad nature of work in Auckland means that employees tend to be generalists and typically work in smaller development teams, leading to faster response times.
Time zone advantages
As the first country to start each day, business has a head start in New Zealand. Its business day covers the afternoon on the west coast of the United States, much of Asia's business day, the morning in Europe, and is a few hours ahead of Australia. This provides the opportunity to do business while other markets sleep.
Food and beverage
Significant growth is forecast for the New Zealand food and beverage industry as the global demand for food continues to grow, and New Zealand’s place in the global market place continues to be respected and grow. Processed food exports continue to show steady growth, while dairy and beverages continue to be fast growing segments.
Auckland is well positioned to capitalise on the forecast increase in two-way trade with China, as processed food (particularly dairy and infant formula) continues to require more processing capacity. Emerging food and beverage trends and Auckland’s strong processing and research and development capability positions the city well for investors to capitalise on the exciting prospects for this sector.
With over 1000 food and beverage companies in Auckland, significant scope still exists for new investors to directly invest in SMEs or establish major processing facilities.
Opportunities to invest in Auckland include:
- Investing in segments where New Zealand has competitive advantage (food processing, including dairy processing and infant formula manufacture)
- Investing to leverage New Zealand’s trusted brands into high growth markets (typically Asia)
- Investing in exporters target countries where free trade agreements provide an advantage (e.g. China).
The processed food sector provides particular opportunities for Auckland based processors able to access Auckland’s significant talent pool working in this sector.
Greenfield and brownfield site availability
Auckland’s large rural and urban land mass provides significant scope for brown and greenfield site developments in the food and beverage sector. The industry is predominantly based in the south of Auckland, but significant opportunities to build affordable plants in smaller rural communities attached to Auckland’s transport network, providing access to a well skilled labour force and proximity to international ports (air and sea) exist.
Significant sites are available from 1 – 3 hectares, with a limited supply of sites greater than 5 hectares. Auckland Council continues to be one of Auckland’s largest landowners and is proactively encouraging the attraction of new processors to Auckland, this provides scope for partnering with investors for the growth of exports, jobs, GDP and profits.
Co-investment with iwi and Māori food producers
Māori and iwi are influential investors in food and beverage ingredient and raw material production. These investors bring a capability to increase the scale of Auckland based production companies, as well as providing strategically co-investment capital. These investors include:
- Aotearoa Fisheries the Auckland based seafood group that are the largest fishery company in New Zealand. Aotearoa Fisheries own Sealord (50 percent), Moana Pacific, OPC and Prepared Foods.
- Te Tumu Paeroa - the new Māori Trustee is the cornerstone investor in Miraka (a dairy processor) and the administrator many of New Zealand’s largest dairy, sheep and beef farms.