Waikato is in the centre of an economic revival, which has seen several sectors of the local economy booming for years. Buying into this market can be a great choice for specialists in niche markets and business generalists alike.
Part of the reason for this local boom is location. Nearly half of the population of New Zealand lives within 150 kilometres of Waikato, which makes shipping and commuting relatively easy and prospects good for new businesses. A few areas stand out especially well for trending business opportunities in Waikato.
Dairy
Waikato is one of the prime dairy districts in New Zealand. The area is home to more than 300,000 dairy cows, and dairy farms here get an average of 17.5 litres of milk from each cow per day. Even better, from a business point of view, dairy farmers have a huge local consumer, Fonterra, to act as a purchasing agent. With low costs, high yield and an almost guaranteed market, it’s hard to lose with dairy in Waikato.
Specialty Agriculture
Waikato is a lot like New Zealand’s California — the climate and soil are ideal for growing specialty crops and niche agricultural produce. While 20,000 tonnes of maize are grown here as a staple (mostly by local Maori farms), the region has more than 4,000 hectares devoted to growing outdoor fruits, such as oranges and lemons. Indoor produce is another booming business, with 90,000 square metres given over to greenhouse produce that fetches high prices from near-captive markets in New Zealand and Australia.
Green Energy
Energy is another growing sector of the Waikato economy. Waikato already produces over one-third of the nation’s renewable energy. Entrepreneurs looking to get into the local energy sector still have plenty of room. Between government subsidies, the availability of wind, solar and thermal, and the ever-rising demand in nearby Hamilton and Auckland, local energy production turns a profit in every quarter.
Construction
Construction has always been sensitive to local economic trends. In a growing area like Waikato, construction goes through a boom of its own. Construction in Waikato increased by over $33 million in a single decade, and very small operators are still doing most of the work in construction here.
Goods Manufacturing
Every smart business tries to control its own supply chain, and goods manufacturing in Waikato has been adding value to local materials for decades. Much of Waikato’s most productive manufacturing is being done by small workshops making specialty items, such as furniture and cabinets. The manufacturing sector is made up of 2,000 companies that currently employ over 21,000 workers in the area. Note that this works out to around 10 employees per company, which leaves a lot of room for mergers, acquisitions and large capital-heavy newcomers in the area.
Health Care
New Zealand’s population is aging, and it’s aging faster than a lot of the rest of the developed world. Along with a rising population, that means endless opportunities are open to health care and senior care providers. Prior to 2013, growth in this sector was a sluggish 1 percent per year, but as the generation born after WWII started to retire, that blew right up. Today, the health sector of Waikato’s economy has been enjoying 7.5 percent annual growth for years, and there’s no sign of a slowdown in the next decade or two.
Waikato is one of the most promising areas New Zealand offers for buy-in opportunities. Single-person operations and small entrepreneurs can get in on the ground floor of agriculture, manufacturing and social services such as assisted taxis for the elderly. Interested buyers with more capital can buy into medium-sized energy companies or construction contractors and grow them to many times their current size. Even the biggest investors can buy up land or invest in geothermal power, indoor agriculture or transportation to tie it all together for the other industries.
In all of New Zealand, there’s hardly a place that’s sending stronger buying signals than Waikato.
If you’re looking to purchase a new business, or curious about moving to Waikato, contact the brokers at LINK Business Brokers Waikato. They understand how to match buyers with potential business opportunities and have networks of owners looking to sell their companies.
