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What Business Sectors Are Booming in New Zealand?
New Zealand is actually experiencing promising economic growth across a number of industries, making it an exciting time to invest in a company in the nation. If you're looking to buy a new business or find a new entrepreneurial challenge, it does help to know exactly which industries seem to be booming. The Ministry of Business, Innovation and Employment keeps annual records and creates a dashboard snapshot showing how companies in various industries seem to be faring. The latest data is from 2015 and gives an overview of which industries are booming according to performance for the previous five years. Here's a quick summary of that data.
Service Industries Are Consistently Rising
The average Compound Annual Growth Rate (CAGR) for service industries from 2010 through 2015 was 4.9 per cent, with all sub-industries presenting a CAGR of 2.4 per cent or higher. Service is the only category this is true. Manufacturing as a category had a CAGR of 5.2 per cent, but that is solely due to the stellar performance of the food and beverage manufacturing industry, which experienced a CAGR of 8.8 per cent (the highest on the dashboard; only agriculture at 8.6 per cent came close).
Other than food and beverage and agriculture, chemical and plastic refinery was the only other non-service-category industry with a high CAGR.
A Look at Booming Service Industries
Transport and logistics was the most booming service industry based on CAGR (it performed at 7.5 per cent from 2010 to 2015) and it was followed by construction, which had a CAGR of 6 per cent. Transport and logistics has been on the move in New Zealand for decades. New roadways, improvements in shipping and container products and processes and an increasingly global economy have combined to result in a significant rise in both imports and exports. In fact, transport is such as booming industry that much of the nation currently faces a driver shortage and now is a great time to buy or start a small trucking company.
The next group of service industries all have a CAGR of between roughly 4 and 5 per cent. That's within the 3rd quartile and above average for national industries. Those service industries include rental and property service, finance and insurance, accommodation and restaurants, utilities, wholesale and retail trade and professional services. All of these industries are booming enough to support new business, but they aren't equally easy to enter for entrepreneurs.
The utility and finance industries obviously come with regulatory requirements and a lot of competition, and some professional services require that you have certain credentials and schooling that take years to accomplish. Other professional services only require a certificate or short training program and you may be able to purchase a business or involve yourself in a franchise that includes some resources for learning the industry.
Perhaps some of the easier industries to enter for someone looking to buy a business include accommodation, restaurant and retail trade. Successfully buying and managing any company does require a certain amount of business acumen, but these industries don't require you to have a specific degree. If you're not sure what industry you want to enter, but do know that you want to buy a New Zealand business, consider working with a buyer broker to figure out the rest.
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