22 November 11, 2016 / The National Business Review The National Business Review / November 11, 2016 SPECIAL REPORT: SPOTLIGHT ON WELLINGTON 23

Jason Walls Photo: lockwoodassociates.co.nz Spotlight on Three things tend to spring to people’s mind when it comes to Without a doubt ‘the digital what makes our nation’s capital Special stand out for business – craft beer, good coffee and technical Report Wellington innovation. capital of New Zealand’ This is bad news for the coun- try’s bureaucrats – who would no doubt think it remiss to leave them off the list – but will strike a Zealand where he would want to Wellington.” increasing 15.3%. “Wellington is an incredibly After years in the doldrums, Wellington’s economy may be reigniting. But if it keeps growing, the city will need better urban planning. welcome chord for anyone work- start a tech company. Last month Science and “This year’s TIN 100 report easy city to live in,” he says. ing in Wellington’s tech sector. The Wellington Regional Innovation Minister Steven Joyce tells an impressive story of inno- “It has a good tech commu- Wellington remains a fashion centre with a world-class clothing and retail pedigree and plenty of business leaders hope to grasp new Over the past 10 years, it has Economic Development Agen- revealed New Zealand’s leading vation, growth and exporting nity and a diverse population opportunities as the city churns out ideas and spaces. grown 25% in Wellington and cy (WREDA) has also highlighted 200 hi-tech companies reached success in New Zealand’s tech- with many businesses located in now contributes $2.1 billion to the sector as the pride of Welling- a combined annual revenue of nology sector,” Mr Joyce says. a small CBD. This, together with Wellington’s regional economy, ton, with chief executive Chris $9.4 billion – up 12% in the space And it’s not just the larger New young people wanting to con- as well as generating 16,000 jobs. Whelan saying it is an increas- of a year. Zealand tech companies flour- tribute and try new things, ingly important component of makes it a great place for tech Tech industry explodes the city’s economy. start-ups.” In fact, the number of ICT busi- “Wellington is positioned to There were 3000 jobs created Technology commentator Ian Onward and upward for national nesses in the region is growing so play a major role in lifting the in the tech sector across New Apperley is optimistic about the quickly that Wellingtonians are value of New Zealand’s exports, future of Wellington’s technology more than three times as likely through selling high-value, Zealand last year:1500 of industry. to work in ICT as people in other weightless tech products and those were in Wellington “We’re talking about an indus- capital’s retail and arts sectors New Zealand cities. services internationally,” he says. try now worth more than dairy It’s no wonder then that “The influence of the sector – Justin Lester and tourism in terms of GDP.” multinational companies such extends into areas such as the IT He says the local govern- Kate Robertson But it’s not just Lambton Quay that’s people to live, visit and shop in Welling- by top-40 heavyweights such as Troye as Xero, TradeMe and Weta all departments of both corporate The figures come from the ishing in Wellington. Custom ment has a big part to play in the flourishing. High-end retail stores can be ton,” he says. Sivan, Flume, and Ellie Goulding (twice) began in Wellington. entities and the government. annual Technology Investment software development company future of the city’s tech sector With the science, technology, engineering found dotted along Victoria and Willis Sts, Running alongside these current suc- – and probably by others not even known In fact, open source software Its contribution to productivity Network’s TIN 100 report, show- YouDo’s chief executive Kari Rei- and new mayor, Justin Lester will and mathematics sector (STEM) a major and now Ghuznee St – a street running cesses in the retail environment are the to be considering the capital. It’s less than company Silverstrip chief execu- goes further still, as seen in the ing that, of all the regions across terer says tech start-ups are also play a large part. focus for the Wellington economy and parallel to Courtenay Place, not tradition- events bringing people into the city, the ideal but has borne innovation, with tive Sam Minee says he cannot range of businesses using soft- the country, Wellington’s rev- finding Wellington a fantastic a hot point of debate during the recent ally known for its retail presence. One events that built the “cultural capital” smaller venues such as craft beer bars think of another city in New ware and tech tools developed in enue growth came out on top, place to conduct business. Continued on P24 local body elections, it raises the question: big brand to take up residence on the brand. For Wellington Regional Eco- Rogue and Vagabond and Meow becom- Where do the arts and retail industries Ghuznee St fringe is luxury New Zealand nomic Development Agency destination ing regular hosts, as well as outdoor ven- Wellington built its reputation on fit into leather bag and jewellery brand Deadly and marketing general manager, Adele ues such as Waitangi Park utilised more the equation? Ponies and just three months after open- Fitzpatrick, the demand for such events is frequently throughout the year. Despite their absence from the debate, ing it is already “surpassing all expecta- only increasing. For a region on a par with talk to almost any Wellingtonian and the tions.” Adelaide and Perth, Ms Fitzpatrick is con- Solution planned general consensus seems to be the sector Deadly Ponies creative director Liam vinced Wellington punches well above its It’s all solvable and is an issue Wellington is thriving. weight for ticket sales and cultural attend- mayor Justin Lester isn’t too concerned How This year has been a big 12 months JUSTIN ance. Indeed, Wellington has seen tickets about. Having now taken on the arts and for the capital. The 2016 Royal Edinburgh LESTER: The to acts selling at a 4% increase year on year culture portfolio, the newly elected mayor WELLINGTON Military Tattoo drew Wellington’s biggest new mayor at Absolutely Positively venues. In 2017, says there is a larger venue budgeted for ever crowd, selling 82,000 tickets across has big plans Ms Fitzpatrick says the agency is looking in five to seven years, and in the mean- for creating the four-day season, The New Zealand forward to hosting the Winery Tour (star- time Wellington City Council will focus on GOT ITS community Festival hosted bigger headliners than ever accessible ring Bic Runga, Brooke Fraser and Benny plans to get the earthquake-closed Wel- before, the World of Wearable Art (WoW) venues Tipene) for the first time at the Basin lington Town Hall and concert chamber continues to light up the city for three Reserve – a venue being considered for “back on track,” along with a number of weeks every spring, and Lambton Quay is wider uses than just sport after the success other community-accessible spaces. Mr more vibrant now than at any other point of Robbie Williams’ concert there last year. Lester sees no reason why Wellington can’t in recent history. Bowden says the team knew going in there The increase in live events has, how- remain New Zealand’s cultural capital and For proof of hype around the retail sec- was a strong customer base in Wellington ever, put pressure on a part of the industry hopes that in three years the city will still tor one only needs to look at the media “begging” for a showroom. Given the loca- falling behind, the lack of venues. In the have a “flourishing arts sector” that will coverage it received in comparison to tion, Mr Bowden believes community wake of several years of notable venues breed more work for artists and commu- BACK the local body elections to know it was has a significant role to play that cannot fading out – longtime music haunt Bodega nity spaces alike. deemed a talking point of national impor- be overlooked. He noted the brand’s typi- being the latest casualty (after the build- As a city, Wellington is teeming with THERE’S RENEWEDGroove CONFIDENCE IN THE CAPITAL AS IT LOOKS AHEAD tance. The shutting down of local institu- cal “High St customer” buys online from ing was sold for development) – local and optimism and ambition. Residents know TO MORE THAN 55,000M2 OF NEW AND REFURBISHED OFFICE SPACE, tion Kirkcaldie & Stains paved the way for Deadly Ponies, whereas in the physical international acts alike are limited in their the city is moving into a period of growth PLANS FOR A NEW CONVENTION CENTRE AND MOVIE MUSEUM, AND Australian department store David Jones stores the team is “focused on being part options. With Bodega removed from the and are wholeheartedly embracing it. With and the opening of Topshop saw people of a community,” something it is already equation, small to medium sized acts are new leadership, a thriving startup industry THE FLOW-ON EFFECTS OF A BOOMING TERTIARY EDUCATION SECTOR. camped out down Lambton Quay in a way seeing returns from. “Ghuznee St has a left only with the often booked San Fran. and a healthy economy, Wellington seems rarely seen in Wellington. The strip is desir- host of interesting retailers and galler- Further this with the lack of a venue in a city worth keeping tabs on. In Mr Lester’s able again and people are catching on, a ies, and is the creative hub of Wellington between the 5655 capacity TSB Arena and own words, “Wellington is believing in status reflected in councillors going as far which aligns perfectly with our values. 34,500 capacity Westpac Stadium, some itself, investing in itself, and marking out as to propose the street be converted into With events like WoW happening annually, major gaps for acts become apparent. its own future.” a walking mall as soon as 2019. there is always something attracting more It’s an issue that’s seen the city bypassed [email protected]

COMMUNITY BUZZ: The annual Newtown Festival brings together art, music and food

Find out what’s driving Wellington growth, as well as discover Total Property’s gold mine of original commercial news content, market trends and invaluable insights at www.bayleys.co.nz/totalproperty/articles Or contact Bayleys specialist Wellington commercial property team on 04 499 6022 Capital Commercial (2013) Ltd, Bayleys, Licensed under the REA Act 2008 Photo: Morgan Fowler 24 SPECIAL REPORT: SPOTLIGHT ON WELLINGTON November 11, 2016 / The National Business Review The National Business Review / November 11, 2016 SPECIAL REPORT: SPOTLIGHT ON WELLINGTON 25

ing, adding carparking, a hotel pled with the availability of greenfield to date has been with local Kapiti busi- and extending its terminal. It development land in locations such as nesses. Nearly 600 people are employed also hopes to build a 300-metre Broken Hill, an increased appetite for on the project and this doesn’t count the runway extension in a bid to development, some of it speculative, is jobs that have been created with suppli- Photo: Morgan Fowler Capital’s grunt attract long-haul flights from evident,” he says. ers and through local businesses. Asia and the US. Mr Bridges says the Kapiti Express- “The project is kickstarting careers “Almost 1600 people a day way and other infrastructure projects are and fostering an enduring skill base for travelled between Wellington providing boosts to the local economy in the region through a partnership with and a long-haul destination peripheral – but still important – ways. Whitireia and Weltec to recruit local over the last 12 months. All of “Over half of the contractors’ spend- graduates.” back on track them had to take additional ing for suppliers and subcontractors [email protected] connections and unnecessary extra time on ground to reach Nathan Smith opment is of paramount impor- rebuild but it is still about their final travel point. tance, says Mr Milford, and the yesterday’s demand. There is “A joint venture with Wel- Wellington Chamber of Com- chamber wants to see an urban certainly the need for the wider merce chief executive John development agency. Com- Wellington region to invest in CONNECTIVITY: Smoothing out infrastructure Milford referred recently to the mercial construction is also infrastructure and develop- Given these market dynamics, capital’s city planning as “lack- increasing, with non-residential ments and to be done ahead coupled with the availability of infrastructure will reinvigorate the Wel- economic growth and productivity. ing grunt,” which is especially building consents up 25% com- of the curve, rather than when lington region’s established industrial Wellington regional transport com- concerning as resident, visi- pared with 15% nationally in congestion is upon us,” he says. greenfield development land in precincts and provide the catalyst for mittee deputy chairwoman Fran Wilde tor and business numbers are the September 2015 year. The Wellington region is one locations such as Broken Hill, an expansion of new precincts north of the says the improved motorway network expected to rise over the next of the top in the country for city. will provide a much higher degree of decade. Front of mind tourism, marking more than increased appetite for development, “To date, development has largely resilience for Wellington – and New Zea- Data from the annual Wellington Airport chief execu- $2.25 billion spent in the past some of it speculative, is evident been focused on bulk retail prem- land – on a vitally important transport Infometrics Wellington CBD tive Steve Sanderson agrees 12 months, a 6% growth over ises servicing a growing surrounding route. report shows Wellington’s gross with the focus on improving the the same period last year. This – Bayleys Research national manager Ian Little residential catchment. However, longer “The current two-lane SH1 is totally domestic product (GDP) grew city’s infrastructure for the ever- reflects global trends, as world term, given its proximity to both Kapiti unacceptable in terms of capacity, expo- Looking for by 3.8% in the year to March rising 204,000 residents in the air travel is expected to double lington City Council to extend affordable long haul services,” airport and the new motorway, Kapiti sure to high tides in storms and seismic 2015. Financial and insurance front of everyone’s minds. in the next 15 years. New routes Wellington’s runway will allow Mr Sanderson says. Landing has the potential to become a risk. As well as servicing the capital and proven solutions services were the largest con- “There is considerable infra- and capacity will boost major long-haul airlines to operate to Bayleys Research national major regional commercial and indus- being a critical commuter road for the to unleash the potential of tribution to overall growth in structure construction hap- developments, Mr Sanderson and from central New Zealand, manager Ian Little says more trial business hub. region, it also carries national freight Wellington’s CBD between 2014 pening, such as Transmission says. delivering significant visitor than $2.6 billion of new roading “Improved connectivity to Wellington destined for the South Island – yet it still your people and 2015, growing by 6.2%. Gully, the Auckland motorways To deal with those changes, growth, business connectiv- city and other major business precincts Urban planning and devel- and rail, and the Christchurch Wellington Airport is upgrad- ity and more convenient and Continued on facing page within the region means interest from UPGRADES: storage and distribution companies in Wellington Chartered Members of the Institute of Organisational Psychology are Kapiti Landing is likely to increase, par- Airport CEO Steve experts in human behaviour in the workplace with proven solutions ticularly as a base for servicing custom- Sanderson wants to act now, rather to your people problems and unrealised opportunities. Having ers in the lower North Island,” he says. Without a doubt ‘the digital than later studied to a honours or masters level, they have had their practice reviewed to ensure they are applying their expertise effectively, and Lift in activity are kept up to date with the latest research on what really works for capital of New Zealand’ People travel from far and wide to work in Wellington’s CBD each day so, once your business. the Northern Corridor project is com- From P23 didn’t exist a couple of years ago and now pleted, peak hour travel times between Find out more information about Organisational Psychology, and a is generating new jobs and opportuni- the airport and Levin may be reduced by functions as it did a century ago,” Ms Chartered member located near you, at www.organisationalpsychology.nz Mr Lester is young, tech savvy and ties.” 40 minutes, according to the New Zea- Wilde says. popular with youth. Mr Apperley says his Although the sector is looking optimis- land Transport Agency. Other improve- Mr Little also highlights a lift in indus- election is a step forward for Wellington’s tic, Mr Apperley says it has been a hard ments are expected to shave 15 minutes trial leasing activity over the past 12 technology sector. slog to get to this point. off the time between Kapiti and the months in Porirua and Tawa area, driv- Sponsored by: Mr Lester tells the National Business “We have had some issues in the past Hutt Valley, and five to seven minutes ing down vacancy rates. A number of Review tech jobs in the city will continue with Wellington where the council hasn’t between Porirua and the Hutt. infrastructure companies involved in the to grow during his tenure as mayor. invested its time and energy into the tech Transport Minister Simon Bridges Transmission Gully project are reported “There were 3000 jobs created in the sector,” he says. says the Northern Corridor, one of the to be searching for space within the tech sector across New Zealand in the last He says the council has done some government’s seven roads of national area, adding to pressure on an already Inspiring excellence in Comprehensive Insurance, year; 1500 of those were in Wellington.” things to help the sector along, including significance, will make journeys tight market, with agency estimates put- psychology across tailored for your personal Asia-Pacific and business needs He says Wellington is “without a doubt trialling some of the smart city software between Wellington and the lower North ting vacancy rates as low as 5-6%. the digital capital of New Zealand.” but “in the grand scheme of things it’s Island easier, safer and foster improved “Given these market dynamics, cou- been quite limited.” IAN APPERLEY: He says a big blow was struck when the Optimistic about previous council got rid of the technology Wellington’s tech portfolio. sector, given “Every local government has differ- the new council ent portfolios the elected officials and leadership WhoWho knows knows ho howtwtoo councillors manage – economy, tourism, housing. The previous Wellington council dumped the tech portfolio and, at the time, we threw our hands in the air and unleashunleash your your productivity productivity asked ‘why have you done this?’ In previous years, especially in the “No answer was forthcoming back 1990s, Wellington experienced corporate then.” dragon?dragon? YoYoududoo drift, where companies left the city in But he says some of Mr Lester’s policies droves, he says. will help to support the sector, for exam- # But that trend is reversing he says. ple his plan to get the council to buy more Even with the best geekery in-house, optimising “Flick Electric is one of the fastest- from Wellington tech companies. information flow can fall into the too hardbasket. growing companies in the country. It “At the moment, the council can buy its At Yo uDo we liveand breathe complex had 3000 customers 18 months ago and tech solutions from anywhere, but what information models. We create cleversolutions 15,000 this year.” Mr Lester wants is the council to spend that lead to increased productivity and better Mr Reiterer says technology is inter- at least 20% of that money on local tech customer experiences. esting in the way it can help businesses companies.” Get in touch and set your dragon free. create something new that wasn’t there This will help with the city’s tech youdo.co.nz/unleash-the-dragon before. growth, he says. WE ENABLE “For example peer-to-peer lending [email protected]