Survey shows significant shift in priorities
Economic uncertainty has become the dominant concern for New Zealand businesses heading into 2025, according to Datacom's latest Business Outlook Survey.
The survey, which included responses from over 200 business leaders, shows a significant shift in priorities, with 77% now citing economic instability as their primary challenge – up from just 13% last year.
This dramatic change highlights the ongoing challenges businesses are facing in a volatile market, as they continue to navigate an environment marked by uncertainty and slow growth.
Datacom managing director Justin Gray pointed out that the results reflect a prolonged period of difficulty for companies, with technological advances offering some potential for growth but ongoing issues like skill shortages and budget limitations still prominent.
Fifteen per cent of executives mentioned the lack of skilled workers as a major concern, while 34% flagged budget constraints.
"Technology is becoming increasingly important in organisational plans, with a focus on AI and automation as significant opportunities for growth," Gray said. "This is reflected in the fact that 68% of respondents anticipate greater investment in technology in the upcoming year compared to the previous year."
While technology continues to rise in importance, the issue of staff retention and recruitment has receded as a top priority. Just 9% of executives listed it as a main focus for the year ahead, a notable decrease from 15% in the previous survey.
Gray attributed this shift to the current low-growth environment, suggesting that should economic conditions improve, staff and skills will likely again become a more pressing challenge.
Alongside technology, other key priorities for businesses in 2025 include productivity (29%) and growth (28%). Cybersecurity remains a significant concern, with 35% of companies reporting a major cyber-attack in the last year. Larger firms were particularly vulnerable, with 53% of them experiencing similar breaches.
The survey also examined business leaders’ views on the government’s performance.
Last year, 71% of respondents expressed confidence in the new government’s ability to create a thriving business environment. However, this year’s results show a slight decline in optimism, with 65% of business leaders expressing positive sentiments and 22% dissatisfied with the government’s actions.
"Business leaders have not fully met their expectations from the government and the economy, but there is a sense of optimism looking forward," Gray said.
Smaller businesses, especially those with fewer than 200 employees, were less confident in the government's performance, with only 49% giving a positive rating and 34% expressing dissatisfaction. Many businesses are calling for more government support in areas such as economic stability and export opportunities.
Gray emphasized that exporting is no longer a peripheral strategy but is becoming a central pathway for long-term success for New Zealand businesses.
As businesses brace for another challenging year, how can the government better support them in navigating uncertainty and boosting export opportunities? Share your thoughts in the comments.
