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About This Update About this Update This publication reports on a selection of key indicators that Update for September 2008 monitor trends in Hamilton and the wider Waikato Region. The update provides statistical information available as at ECONOMIC GROWTH – WAIKATO REGION September 2008 (i.e. it primarily focuses on data covering (June Quarter 2008) the period April to June 2008), plus some of the more recent happenings around Hamilton and the region. It is currently distributed to elected members and staff at Hamilton City Council as well as to various organisations and members of the public. The publication can also be downloaded from www.hamilton.co.nz/economicupdate. June 2008 Quarter Summary Business confidence was largely unchanged in the June 2008 quarter according to the National Bank, while consumer confidence fell for the second successive quarter. Consumer confidence in the Waikato increased this quarter, after a large decline in the June 2008 quarter. Hamilton’s unemployment rate fell to 3.3% in the June Source: The National Bank of New Zealand (Economics Division) 2008 quarter (compared with 4.5% in the March 2008 quarter) and was lower than the national unemployment rate of 3.8%. The total number of houses sold in Hamilton in the June 2008 quarter was down to 386, compared with 459 in the March 2008 quarter. According to National Bank’s ‘Property Focus’ the median number of days to sell rose to 56 in September, from 51 in the June 2008 quarter. A recent survey by Darroch Valuation found that vacant industrial land supply across Hamilton currently stands at 89 hectares, compared with approximately 140 hectares around six years ago. Sources: • The National Bank of New Zealand (Economics Division) • Statistics New Zealand, Quarterly Regional Review (Hamilton) March 2008. • Darroch Valuation. Source: The National Bank of New Zealand (Economics Division) For further information please contact: Nicole Hubbard, Waikato economic growth was the same as the national average Strategy and Research Unit - Hamilton City Council. economic growth, at 0.8% for June 2008, and was one of only Ph: (07) 838 6769 Email: [email protected] four regions to have back-to-back declines over the past two quarters, according to National Bank’s ‘Regional Trends’. Highlights STUDENT CENTRE TAKES SHAPE HONEY RESEARCH HITS INTERANTIONAL MARKET The University of Waikato has embarked on an ambitious $29 million Research from Waikato University’s honey research group is about capital works programme to build a landmark, one-stop student centre at to hit international medical markets in the form of a dressing for the heart of its campus. wounds. The dressing, a blend of honey and a seaweed extract, is The 10,600m² complex will house an “information commons” with space designed for use on wounds including leg and foot ulcers, burns, for 1,000 computers and the provision of wireless technology. The and infected areas. The international wound-care market is existing central library will be refurbished and integrated with the new estimated to be worth $12 billion by 2012. facilities. The dressing is the brainchild of Dr Peter Molan, a professor at the Design team leader Alec Couchman says making the campus a more University of Waikato, who leads the university’s world-renowned attractive place for students is a key driver of the project. Waikato Honey Research Unit. University Alumni Magazine – 2008 Winter edition Dr Molan said the dressing would be particularly useful for chronic wounds resulting from diabetes. Type II diabetes is predicted to CITY FIRM IN MICROSOFT LINK become a huge burden on health systems as obesity rates see more people succumbing to the disease, and the foot ulcers and wounds Microsoft has entered into a partnership that will be worth millions of it often causes. “It means fewer amputations which are often dollars to Hamilton software development company NetValue. necessary when these wounds won’t heal.” The software giant has chosen the four-year-old London Street firm, That, in turn, means lower costs for the health sector. “A lot of which employs 40 staff, for its high-performance computing, life sciences wounds care is done in the community, and this dressing doesn’t and high potential managed independent software vendor partner need changing as often as conventional dressings, so it could save programmes, as NetValue launches human genome mapping software on time and travel costs” Dr Molan said. called ‘Slim Search’. Comvita’s Chief Marketing Officer Scott Coulter said the NetValue chief executive Graham Gaylard said his company’s high-speed Medihoney Antibacterial Honey Gel Sheet had regulatory approval genomic search technologies combined with Microsoft’s High as a medical device to be sold in Europe, as well as FDA approval Performance Computer Server platform were a critical component for the for the US. It is already for sale in the New Zealand medical next generation of DNA search and analysis. industry. www.waikato.ac.nz He said the new software eliminated the need for clusters of supercomputers in high performance research centres and could be HAMILTON AIRPORT UNVEILS $3.8 MILLION ANNUAL PROFIT installed on one PC. Mr Gaylard, said the partnership gave NetValue instant international Hamilton International Airport has reported an after-tax surplus of credibility: “Given we are the only one with such status in New Zealand, $3.8m for the year ended June 2008, up from $2.7m the year then we will get a competitive advantage from that alone.” Said Mr before. Gaylard. Chairman Jerry Rickman, said the company had reduced debt The software, developed by fellow shareholder Dr Stuart Inglis, Dr during the year from $21.2m to $17.9m from the proceeds of land Leonard Bloksberg and Prof John Cleary, cost hundreds of thousands of sales. dollars to develop and will be used by doctors to make a diagnosis. Those Mr Rickman said landing charges were up 33%, car park revenue using it will pay $US50,000 per year. up 2.9%, rental income up 36% and departure fees up 13% as the www.waikatotimes.co.nz airport achieved record aircraft movements for the year. www.waikatotimes.co.nz RETAIL LOW OR VACANT IN CITY CBD COUNCIL APPROVES ZONING CHANGE FOR TITANIUM PARK Retail sales are at a national low and the number of vacant shops in the Hamilton’s CBD is estimated to be around 100. A major commercial and industrial development planned for the An ASB study found that Waikato retail sales for the year to 30 June were southern outskirts of Hamilton has been given the green light, down 3% (the national low) compared to the previous year. Auckland’s following Waipa District Council’s decision to re-zone 117 hectares retail trade was down 1%, while Northland and Nelson saw a significant of land bordering Hamilton International Airport. increase of 9% and 10% increase respectively. The Titanium Park development, a joint venture between Hamilton The majority of tenants leaving the CBD were closing rather than International Airport and McConnell Property, will house a relocating, according to Colliers International director Mark Brunton. The balanced mix of commercial, industrial, manufacturing and aviation increase of retail space at The Base, St James Park Shopping Centre and enterprises, and provide a range of purchase options catering to Chartwell Westfield were all factors. businesses of all sizes. Mr Brunton said consumers were watching their money more carefully McConnell Property Head of Commercial and Industrial, Nigel and it was hurting retailers. Howards Storage World, in Downtown Plaza, Richards, said the Council’s decision to replace the previous rural went into receivership in July and in Frankton, Blockbuster video closed and airport industrial zoning with a new Airport Business Zone is a its doors. tribute to everyone who participated in what he describes as a Other Waikato sectors are also facing turbulent times. New car sales “hugely consultative” process. slowed by 15% in the Waikato and the construction sector was among The joint venture partners are now working towards finalising a the worst hit in the country, with a 32% decline compared to the same start date for construction, with a ground-breaking ceremony period last year. planned for some time in the near future. Employment remained relatively stables, down by 1% and despite Mr Richards said the new development will be a welcome relief to ongoing reports that house prices had taken a dive, the ASB study the local industrial and commercial market. showed it had fallen only 1.4%. www.waikatotimes.co.nz www.hamiltonairport.co.nz Highlights V8 Highlights COMPANIES FLOCK TO INNOVATION PARK V8’S GENERATE $28 MILLION ECONOMIC IMPACT FOR HAMILTON International processing and packing company Tetra Pak is among several An independent post-event analysis of the inaugural Hamilton 400 major new tenants to anchor the next stage of development at the held in April 2008 has shown that the economic impact on the city Waikato Innovation Park. was approximately 40% greater than originally estimated. The The company will be joined in the new building by existing park tenant study, undertaken by Horwath HTL Limited after the Hamilton video communications company Tandberg and possibly the expanding 400, says that $28.3 million of new money was generated for the Hills Laboratories, which already has some of its facilities at Innovation local economy as a result of the city hosting the event. Park. The moves will allow space for several new companies to take up Horwath HTL completed an economic impact estimate prior to the residence in the established core facilities building. event in 2006 as part of the resource consent application which Earthworks began last week in what will be the third major expansion in predicted the impact would be around $20 million.
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