'Golden Triangle' Augurs Favourably for Further Growth
The National Business Review / May 29, 2015 23 Special Report Businesses are noticing the attractiveness of being based Tauranga in regional cities. Tauranga exemplifies a dynamic trend A BUSINESS SHOWCASE throughout regional New Zealand. The city’s position in the ‘Golden Triangle’ augurs favourably for further growth Jamie Ball service sector. “There is quite a significant num- director of the Institute for Business Research at ber of baby boomers in both industries, who the University of Waikato, he has seen the broad- Much as New Zealand’s economic fulcrum tilted invested in them quite some time ago. The own- er region transform since joining the university over a century ago away from the South Island, ership of those industries is now aging and they in 1989. Tauranga’s rise in recent decades is part of a exit out of those industries with plenty of money. “In economic literature, there is the idea comparable move. That’s one of the important elements in terms of of the gravity trade model: you trade the most It is an incremental concentration of growth, Tauranga’s growth: the dairy or kiwifruit farmer with the people who are closest to you, and the spending, human resources, migration and retiring to live in Mount Maunganui, albeit a bit least with who are furthest away. So it’s easy employment flowering in the upper half of the of a cliché,” Prof Spoonley says. for a firm in Auckland to do business in Ham- North Island. Such is the frequency of those baby boomers ilton, compared to doing business with a firm Whereas the traditional quartet of Kiwi in Tauranga that it presents obstacles in attract- in Palmerston North, for example, or with the cities comprised the Auckland/Wellington/ ing and retaining youth – and youthful talent South Island,” Prof Scrimgeour says.
[Show full text]