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Home , Christchurch, City Gallery Wellington, Wellington

MAGNET CITIES IN

AUCKLAND / /

SUMMARY & FINDINGS EXECUTIVE SUMMARY

Cities are one of the There are now 400 cities of one million Haynes, an economist and government fundamental building blocks people competing for the best ‘extremely advisor from the UK visited New mobile’ talent and growth companies Zealand in June and again in October of a prosperous country to drive national economies. These 400 this year. During her visit she and it is time to take them cities are direct competitors for Auckland, conducted workshops with city seriously. A city with a strong Wellington and Christchurch. Putting officials and other stakeholders in magnetic pull draws in this in a global context, the future of Auckland, Wellington and Christchurch geographic competition will be between to help recognise ways to approach new residents, visitors and 500 large cities which will control 80% of beneficial change. global financial activity. business investment. They Her key insights from each of the WELLINGTON are brimming with innovative KPMG’s Caroline Haynes and Vanessa major cities are that: Christchurch ideas, have attractive Forshaw have developed a framework for has the opportunity to become infrastructure and a buzzing thinking about cities and how to draw in technology testbed city, using 'smart CHRISTCHURCH people who will make the city prosper. city' infrastructure; Wellington can culture. These cities attract a They identified nine cities around the leverage the expertise in the public specific group of educated, world who have switched their magnetic sector on a global basis; and Auckland ambitious and energetic pull and now attract young wealth can encourage new business growth young people, coined young creators. A bold experiment and huge by attracting start-up accelerators. risk has resulted in them becoming fast- We hope these insights provoke and wealth creators. growing cities with economic growth that inspire New Zealand cities to answer in many instances outstrips the national the following key questions: average.

1. Who do we need to attract or retain in our cities to generate future wealth? 2. How can we compete against other cities to attract them? WHAT IS A MAGNET CITY?

Magnet cities are those Caroline Haynes and Vanessa who have taken a bolder Forshaw from KPMG UK has developed a framework for approach to growth thinking about cities and how to and invested in creating draw in people who will make the an environment that is city prosper. attractive to people The case study cities were who make a city grow, unattractive to new growth, in a those coined Young cycle of decline and repelling people. A bold experiment and huge risk Wealth Creators. has resulted in them becoming fast growing cities with economic growth often above the national average. New Zealand has an opportunity to develop magnet cities. We can ensure that our cities have strong identities, i.e. the unique features that attract young people and the infrastructure to support a high tech dynamic group. We can foster innovation and have a brand that is attractive to forward thinking business. WHAT HAVE WE LEARNT?

PEOPLE ATTRACT Young Wealth Creators are a specific There is fierce competition for group of educated, ambitious and Young Wealth Creators and they: energetic young people. They create • Care about sustainability and jobs of tomorrow, bringing along the environment with them the city’s future wealth. • Embrace physical fitness These people are entrepreneurs, and outdoor pursuits researchers, designers, engineers, physicists, bloggers, artists, • Are foodies – enjoy artisan animators, app and game designers, food, drinks and cocktails clean-tech advocates and people • Get stuck into neighbourhood that build on existing businesses and civic networks or identify and grow new • Are attached to multiple electronic industrial niches. devices simultaneously We need to identify and target A city can’t just invest in physical specific groups of Young Wealth infrastructure and developments Creators and refashion and leverage geared to young people (e.g. all the city’s assets to make redeveloped areas for bars), this them move here. investment must be focussed on what would attract the particular group of Young Wealth Creators we want. Seven key principles 4. CONNECTED were identified that Magnet cities are well connected to other cities – easy to get in to underpin growth and out of. and can be used by The city must first have regained some cities to create their own magnetism before transport links are THE SEVEN helpful, otherwise they provide easier positive magnetic pull. links for residents to leave. Visitors help build magnetism and are PRINCIPLES potentially tomorrow’s residents. 1. ATTRACT YOUNG WEALTH CREATORS 5. NEW IDEAS Identify and establish a unique Magnet cities nurture new ideas. relationship between the city itself and If possible leverage off academic the particular group of young wealth institutions to bring changes to creators you aim to attract. the city. Target groups that have a logical link Be specific about the industry clusters to the city. The city’s point of attraction you want to support, then focus and must be genuine – based on the city’s support this development. heritage.

6. FUNDRAISERS 2. PHYSICAL RENEWAL Magnet City governments attract Ongoing physical renewal keeps private investments, research grants 1 2 cities interesting and new. and public funds for the city. Consider the housing required by your Progressive magnet cities offer their group of young wealth creators, it’s own risk capital to attract investment density, location and access to public and funds. transport. Significant improvement of a city A strong downtown area can requires public and private money strengthen the magnetic pull of working together. the entire city. 3 4 5 7. STRONG LEADERS 3. CITY IDENTITY Reinventing a city requires strong Cities that attract young wealth mayors and civic leaders. creators have a strong and clear city Magnet city leaders have to identity that residents connect with. true to the vision in the face of Without a clear city identity it is difficult public dissent. 6 7 for people to understand what a city Magnet city leaders all work more stands for and its attraction. collaboratively with residents, Through concerted effort you can investors, developers, businesses create a city identity if it does not exist. and universities than is the norm. THE ECOSYSTEM FOR A MAGNET CITY EXISTS… IT JUST NEEDS CONNECTIONS AND COMMUNICATION

AUCKLAND WELLINGTON CHRISTCHURCH

TAMAKI CREATIVE AND CREATORS AND KAI EXPERIENCE TECH DISRUPTORS

Nature Tech: Wellingtons fusion Christchurch’s the intersection of technology, boundary busters: of culture, food, creativity and fusion of health and public service creativity and technology for life. experience. disruption. LESSONS NEW ZEALAND CAN LEARN FROM MAGNET CITIES

MAGNET CITY YOUNG WEALTH CREATORS KEY ACTION LESSONS FOR NZ CITIES

Malmo, Sweden Socially progressive clean technology Urban renewal & infrastructure Entrepreneurial approach using public Population 656,000 & sustainability entrepreneurs combining sustainability and design assets to seed growth

Pittsburgh, USA R&D focused on robotics, artificial Quality projects, including making University leaders pivotal. 1,200,000 intelligence & medical innovation city walkable. Magnet for innovation Alternative taxes created investors

Changwon, South Korea Environmental and creative Combined 3 cities; environmental Can-do mayor & pro-business 752,000 entrepreneurs renewal government

Bilbao, Spain Creative professionals Changed the urban core Reclaimed the waterfront; 979,000 innovative funding

Denver, USA Medical & bio-tech millennials wanting Attracted research leaders. Public art Connected transport; used sales tax 2,500,000 work-life balance & outdoors pursuits projects. Transport & downtown renewal and municipal bonds for funding projects.

Incheon, South Korea Global scientists, researchers and Physical transformation - iconic Attracted universities; enabled 2,600,000 global business executives buildings, transport, parks, waterways private funding

Oklahoma, USA Young educated professionals with Enhanced river as outdoors area; created Council with commercial mind-set 1,200,000 outdoors and sports focus canals, stadiums; urban renewal

Tel Aviv, Israel Technology entrepreneurs Redeveloped seafront; provided 24hr non-stop city – eat, drink and 425,000 start-up space dance all night MEET

Looking through our future lense of AND THE FUTURE AUCKLAND who we might be able to attract

THE PERSON... THE CITY... » Brazilian. » After graduating from Stanford, »  Auckland has world-famous food markets, held seven days » Age 30. he took a job in Auckland – he did this because Auckland is where a week, where food companies » Degree in chemistry from University of Brazil. some of the most exciting food test new food innovations. » PHD from Stanford University. innovation around the world is »  People travel from around » Interested in the chemistry behind food, taking place. the world to go to these food particularly new food products. » Fonterra has opened a secondary markets, providing a huge boost » Strong moral compass. R&D facility in the old Port to . » Worried about increasing levels of Location in central Auckland. » Pioneering spirit. malnutrition of both kids and adults. »  The city has residents from »  The Auckland Awards – an » Concerned about the environment. all over the world. annual global award given to » Loves hiking and surfing in the weekends. »  Food testing panels have been the development team behind a food innovation or products that » Strives to win a world-famous ‘Auckland established by huge food will most benefit the world’s Award’ for the diabetes-busting protein manufacturers due to Auckland’s global citizens. population and planet. he is helping to develop.

AUCKLAND Meat Dairy Grocery Processed foods Horticulture Specialty food ECOSYSTEM Neutraceuticals Beverages FOOD, RETAIL Restaurant Wine BEVERAGE & & FOOD Café NEUTRACEUTICALS EXPERIENCE Quick food

Engineered Information Ngati Whatua products technology THE ENTERPRISE Tainui Processing Genetics PARTNERS THE PEOPLE MAORI Others technology (plant & animal) (SUPPLIERS) Specialty Advisory ingredients Logistics MAKE THINGS CONNECT TO HAPPEN ! FOOD, HEALTH Product specialists Consumer Brand specialists specialists & TECHNOLOGY

Polynesia/Islands Tourism Te Puni Kokori Chinese MPI Treasury CENTRAL VALUE FOOD MBIE Education GOVERNMENT LOVERS CULTURE DRIVEN Europe MFAT Environment TAMAKI KAI South East Asia NZTE Assure quality Central & South America

Employers Retailers RISK DIVERSITY Sustainable Chamber TAKERS SEEKERS business of Commerce Watercare Horticulture IT industry LOCAL INDUSTRY ATEED Wine Unions (multiple) GOVERNMENT GROUPS Dairy Meat industry GO-GETTERS Meat industry Packaging Committee for Auckland

University of Auckland MIT IERSR IGNS Massey Unitec EDUCATION RESEARCH Landcare Crop & food AUT Lincoln NIWA Callaghan Agresearch MEET

Looking through our future lense of AND THE FUTURE WELLINGTON who we might be able to attract

THE PERSON... THE CITY... » From England. » Wellington has become the » The Digital Tech sector is a huge contributor to the economy » Age 28. global hub for social agencies applying cutting-edge thinking with over 150 direct IT entities » Engaged to be married to a guy she to a citizen centred government generating over $2bn and the met in Wellington. using data and analytics. public sector IT spend over $1bn » Masters in Economics and IT from . » After graduating from Oxford, » Wellington has a super » One of 15,000 Digital Experience Tech she took a job in Wellington as connected, magnetic ecosystem experts in Wellington. she was attracted to Wellington’s linking local government, » Loves culture and the outdoors. reputation for creative tech and education, industry and media » A ‘thinker’ always looking for the next ‘great idea’. ground-breaking approach to with the wider ‘wellington experience’ which Jenny and » A well-travelled, worldly global citizen. public service experience. her techy friends are an integral » Wellington is recognised as a » Strong moral compass. part of ‘hot bed’ of thinking with 4,000 » Wants to minimise her environmental footprint. employees from private sector » Wellington’s compact city centre » Loves a busy social life in a city that is ‘alive’ and NGO’s engaged full time is buzzing every night of the every night of the week. in reshaping the public sector week with bars, café’s, late night experience’. events and shows. » At least $5bn of direct economic activity is produced by Jenny and her ‘tech mates’ because of their love for living (spending on culture and outdoor experiences). IRD WELLINGTON Health Outdoors Cafe Justice, Courts, Police Gallery Music ECOSYSTEM MBIE PUBLIC SERVICE THE WELLINGTON Theatre Sport EXPERIENCE TECH MSD EXPERIENCE Restaurant

150 digital experience company’s – Top 10: ► Datacom ► Optimation Run the Red RedSky Film & ► ► THE PEOPLE DIGITAL Certus Catch Design Television ENTERTAINMENT EXPERIENCE ► Weta ► Catalyst IT The Green Group & MEDIA TECH Weta / Digital ► Fronde ► Open Cloud Wipster Neilson CONNECT TO ► Intergen ► TradeMe Simply Digital Pukeko Pictures LOVE TO LIVE EXPERIENCE, Park Road Avalon Studio CREATIVITY & I.Kon.O.Clust TECHNOLOGY

Wellington Councils 90 Seconds TV Te Papa EXPERIENCE SOCIAL AND LOCAL ENVIRONMENT CREATIVE & LIVE AT Grow Wellington Radio NZ INSTITUTIONS THE FRONT GOVERNMENT CONSCIENCE Wellington Economic National Film Archives EXPERIENCE Development Alexander Turnbill TECH National Library

WORLDLY Treasury CREATORS Environment Callaghan MBIE NIWA CENTRAL RESEARCH NZTE GOVERNMENT ESR DIA THINKERS GNS Science Ministry of Education Ministry of Social Development Ministry of Health SCC ICT.govt.nz Massey School of Design WDCNZ INDUSTRY GROUPS EDUCATION Victoria University TechNZ Wellington Institute of Technology EdTech For Export Youbee School of Design NZ Music Industry Whitereia Creative NZ Film Wellington MEET

Looking through our future lense of AND THE FUTURE CHRISTCHURCH who we might be able to attract

THE PERSON... THE CITY... » From Silicon Valley. » Christchurch is the creative » Beautiful affordable student housing. » Age 29. centre of NZ celebrating diversity. » Removed barriers to creativity » Single. » Embraces experimentation. – 5% creative development » Computer Science degree from Victoria University. » Canals in the Red Zone. contribution. » Working for the 2nd best virtual reality team in the » Seeks out positive disruption. » New Zealand’s most walkable world, housed within Canterbury University » A community lead leadership and cycle able city. » Also works part time for a 30 year old university structure, involving data » Creative commons in the CBD. lecturer who is planning to launch his own rocket scientists. » Private affordable funding for within the next 12 months. » Christchurch fellowship civic projects. » Creative and Artistic. sponsored by ‘SpaceX’. » Foodie – loves trying new restaurants and bars. » An integrated transport system. » Healthy, outdoor lifestyle. » Top 5 investment cities in the world for technology. » Community focused. » A city of creation that is design lead. Lyttelton Southern Alps Banks Peninsular Waimakarari Sumner CHRISTCHURCH NZTE The Avon Antartica THE Red Zone CHRISTCHURCH ECOSYSTEM TPK EXPERIENCE Canterbury Museum Ministry of Health / CDHB CENTRAL Te Puna Ahurea Art Box Education Cultural Centre GOVERNMENT Performing MSD Christchurch Arts Precinct Internal Affairs Art Gallery / Centre The square THE ARTS Central Library SCENE Family Playground Convention Regenerate Christchurch Botanical Gardens Centre National Infrastructure Unit THE PEOPLE World Buskers NZ Transport Authority Festival Infrastructure Alliance INFRASTRUCTURE LIVING ON THE CONNECT Land Information New Zealand EDGE TO CREATIVITY Rocket Lab & DISRUPTION Ministry of Awesome Department of Building and Housing () KiwiRail CCC Glenn Martin INDIVIDUAL Grant Ryan DISRUPTERS Sir Gill Simpson Future Tech CPIT James Tan ADVENTURES LIVE AT Electronic South CREATIVE THE FRONT Scott Noakes EDUCATION Youbee School of Design Canterbury DISRUPTORS Canterbury Lincoln Software Cluster IT Hothouse SOFTWARE: TECHNOLOGY: SLI Systems Tait Wynyard Dynamic Controls Aranz Geo Invert Robotics Jade Enatel Chamber of Commerce OUTDOORS CREATORS Telogis Trimble Canterbury West Sports Trust DISRUPTIVE Trineo Scope ENTERPRISE Canterbury Development Corp RESEARCH Yike Bike AgResearch, Martins Jetpack Landcare Research, DISRUPTERS Plant & Food Research HEALTH-TECH: AGRI-TECH: Orion Health Crop Logic DairyNZ McKesson Innicad (+ all Crown Research Institutes) Comrad Lincoln Agri-Tech Silhouette iAgri Metro Sports Facility Fishing OUTDOOR Innovation Precinct The Stadium Ski Fields DISRUPTIVE SPORT & LEISURE CENTRES Innovation Park (Hagley Cricket Oval) Cup-day SERVICES: GAMING: EpicCentre Datacom Digital Confectioners Mountain Climb Kayak Greenhouse Effectus Cerebal Fix Salmon & Trout Fishing Diving Truescape Mountain Biking Rugby Rock Climbing & Bouldering JOIN THE ECOSYSTEMS

CLOSING JOIN THE STATEMENT ECOSYSTEMS

Magnet Cities are competing more effectively to attract wealth creators who NEW IDEAS STRONG LEADERS enable faster growth. AUCKLAND Action is required TAMAKI KAI to connect a city’s ecosystem at 3 levels; 1. Businesses 2. The City CHRISTCHURCH WELLINGTON CREATIVE CREATIVE & 3. Nationally CITY IDENTITY DISRUPTORS EXPERIENCED TECH FUNDRAISERS

PHYSICAL RENEWAL CONNECTIVITY OUR

Simon Hunter Caroline Haynes Vanessa Forshaw PEOPLE Partner, NZ Director, UK Senior Manager, NZ Simon leads KPMG’s Performance Caroline is a Director in KPMG’s Vanessa is a Senior Manager in our Consulting team in Auckland and has a Advisory Practice and leads the firm’s Wellington team having spent the past 20-year track record of boosting growth work on Economic Growth and ten years working across KPMG’s NZ and profitability to build value for his City Reinvention. and UK practices. She has significant clients and fuel their prosperity. management consulting experience She trained and worked for many supporting public sector and financial Simon is a highly experienced and years as an economist and was an services clients. commercially astute performance advisor on welfare reform to the Labour improvement specialist with a proven governments under Tony Blair and Gordon While in the UK, Vanessa was KPMG’s track record at Board, CEO and Executive Brown and was an economic advisor Local and Regional Government Sector level. Simon is a trusted advisor to the current UK Prime Minister and Executive with responsibility for leading who is able to respond to the critical Chancellor. key client engagements, developing challenges that constrain organisational Caroline is co-author of Magnet Cities propositions to support local authority performance including strategy direction along with Wellington based Vanessa clients and drafting thought leadership and deployment, customer growth and Forshaw. Caroline advises on Sustainable articles. She is co-author of Magnet Cities profitability, productivity, transformation, Urban Development at the University of and will provide local connection and people and change. Oxford. She also advises UK and global insight into this global thought leadership Prior to joining KPMG Simon career city clients on economic growth, city piece. included leading Grant Thornton Business reinvention and the commercialisation of Education & Qualifications Transformation practice as partner and city assets. Caroline holds degrees from 14 years with Arthur Andersen and Ernst Columbia University and the ► Bachelor of Laws (Victoria University Young as a senior manager and principle School of Economics. of Wellington); in the Performance Improvement ► Bachelor of Commerce and Administration Manager and Principal. Education & Qualifications (Victoria University of Wellington); Simon will be the Lead Partner in ► BA Economics, Columbia University ► Enrolled Barrister and Solicitor of the High Court of New Zealand; New Zealand for the Magnet Cities Project. ► MSc Economics, London School of Economics ► Certificate in Terrorism Studies (University Education & Qualifications of St Andrews, United Kingdom); ► BCom, Ag Economics and Marketing, ► Prince 2 Foundation Course. Email: [email protected] Lincoln University (NZ) ► The University of Western Ontario Advanced Email: [email protected] Management Programme ► Ernst & Young (Darden Business School) Executive Programme ► Lean Six Sigma Black Belt

Email: [email protected] Contact

Simon Hunter Partner Auckland T: +64 (9) 367 5811 E: [email protected]

Vanessa Forshaw Senior Manager, NZ Wellington T: +64 (4) 816 4723 E: [email protected]

kpmg.com/nz

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