Covid puts brakes on growth

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Covid-19 has made a definite impact on North Canterbury businesses in the past six months according to the latest North Canterbury Business Opinion Survey.

The survey, released this week by Enterprise North Canterbury (ENC), is for the six months to the end of October 2021.

The results show that a third of surveyed businesses consider Covid-19 restrictions to be limiting their ability to grow.

In addition, profitability has decreased, costs have increased, and supply constraints are making things problematic.

Forty percent of surveyed businesses saw a drop in profits over the past six months, with 31% noting an increase.

Fifty-eight percent of businesses reported an increase in the cost of doing business, with a trickle-down to the consumer, while 40% of businesses reported an increase in their prices. Business confidence has also dropped, with 41% of those surveyed expecting the business situation to deteriorate in the coming six months compared to just 29% who expect it to improve.

“There’s a lot going on for our local businesses right now,Business Support Manager Miles Dalton, who compiled the survey.

“In addition to the difficulties highlighted in the report, businesses are dealing with general uncertainties, fear of another lockdown and the flow-on effects from supply chain issues.

“As such, the survey results are not a huge surprise,” says Mr Dalton.

situation, we noted an increase in staffing levels over the past six months as well as an increase in the number of businesses investing in buildings, plant and machinery.

“This shows that there is definitely a degree of optimism for the future.

The full North Canterbury Business Opinion Survey can be found here: northcanterbury.co.nz/assets/Uploads/2021-October-Business-Opinion-Survey-1.pdf.