3
Taranaki Industry Structure and Performance
This section sets out the Taranaki region’s current industry structure and performance in
terms of employment and GDP. The analysis looks at the changes in industry structure
between 2001 and 2006. The Taranaki region’s growth is compared to that of New Zealand,
at aggregate and at industry-by-industry levels.
3.1 Taranaki
population
Employment and GDP should be considered in light of the population demographic in the
region. Population growth has been significantly slower than nationally as shown in Table
3.1. This makes Taranaki’s performance over the past five years even more impressive.
Table 3.1 Population trend, 1996 – 2006
Number
Percent
Number
Percent
Taranaki Region
106,569
102,684
104,697
-3,885
-3.6
2,013
2.0
Total New Zealand
3,681,546
3,820,749
4,143,282
139,203
3.8
322,533
8.4
Source: Statistics New Zealand, Census
Increase or Decrease (-)
Increase or Decrease (-)
Census Night Population Count
1996
2001
2006
In New Zealand, a large proportion of growth has been in population-based, service-focused
industries. In Taranaki, population growth has not been in the same league as in New
Zealand. Although these industries have been growing fast in Taranaki as well, they are off
a smaller base and, therefore, they have not impacted significantly on the regional totals.
Therefore, while employment and GDP growth in Taranaki have been slower than the
national average over the last five years, this is an impressive performance considering the
region’s population trends.
Further, there has been a turnaround in Taranaki’s population demographics. After declining
between 1996 and 2001, the population grew in the last five years by 2,000 people (2.0
percent). This will impact positively on the region’s performance going forward, especially as
it provides the resources/clients to support the high growth/value added service sectors.
3.2 Taranaki
employment
In 2006, the Taranaki region employed just over 45,200 FTEs, which is around 2.5 percent of
national employment. The majority of the region’s employment is in the manufacturing and
agriculture sectors. Employment growth in the region has accelerated substantially since
2001, compared with earlier performance, indicating a positive change in the Taranaki
region’s economic performance.
9
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
Figure 3.1 shows the proportion of employment in the Taranaki region accounted for by
various industries in 2006.
Figure 3.1 Taranaki FTEs, 2006
Agricult ure
16.2%
Food processing
8.4%
Educat ion
5.6%
Communications
0.9%
Transport & storage
3.1%
Wholeale & ret ail
15.0%
Ot her mfg
4.0%
M ining (O&G)
1.8%
Cult ural and
recreat ional
1.6%
Personal
2.8%
Healt h & communit y
8.1%
Government admin
1.9%
Fishing
0.1%
Utilit ies
0.5%
Forest ry
0.3%
Hospit ality
3.9%
Engineering
6.1%
Bus, f inance & propert y
11.6%
Construct ion
8.1%
FTEs
BERL Regional Database, Statistics NZ
The three manufacturing industries – food processing, engineering, and other manufacturing
– together provided 18 percent of Taranaki’s employment. Agriculture accounted for 16
percent of all employment in the region. The manufacturing and agriculture industries are
related in that close to half of manufacturing employment is in food processing.
The next largest industry was wholesale and retail trade, at 15 percent of employment, while
finance and business services (12 percent), construction (8.1 percent), and health and
community services (8.1 percent) were also major players.
However, the share of employment accounted for by each industry at a regional level relative
to the national picture provides a better description of important industries in the region.
Figure 3.2 shows the proportion of employment in each industry in Taranaki compared to the
New Zealand average.
10
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
Figure 3.2 Comparison of employment by industry, 2006
BERL Regional Databse; Statistics NZ
16.2
0.3
0.1
1.8
8.4
6.1
8.1
8.1
3.7
6.0
0.4
18.1
4.6
4.0
1.6
16.8
3.5
6.2
2.6
3.6
0.5
2.8
1.6
5.6
1.9
0.9
3.1
3.9
11.6
15.0
4.0
8.2
7.5
4.2
0.2
0.2
0.4
8.2
0
5
10
15
20
Ag
ric
ul
tu
re
Fo
re
st
ry
Fi
sh
in
g
M
in
in
g
(O
&G
)
Fo
od
p
ro
ce
ss
in
g
En
gi
ne
er
in
g
O
th
er
m
fg
U
til
iti
es
C
on
st
ru
ct
io
n
W
ho
le
al
e
&
re
ta
il
H
os
pit
al
ity
Tr
an
sp
or
t &
s
to
ra
ge
C
om
m
un
ic
at
io
ns
Bu
s,
fi
na
nc
e
&
pr
op
er
ty
G
ov
er
nm
en
t a
dm
in
Ed
uc
at
io
n
H
ea
lth
&
c
om
m
un
ity
C
ul
tu
ra
l a
nd
re
cr
ea
tio
na
l
Pe
rs
on
al
Sector
FTE
s
(% of tot
a
l)
Taranaki
New Zealand
From this we can see that a significantly higher proportion of employment in the Taranaki
region is in agriculture, food processing, engineering, and mining. Conversely, Taranaki has
a relatively low proportion of employment in business, finance and property services;
wholesale and retail trade, and most of the service industries.
These relative proportions are important when we consider employment growth.
Table 3.2 presents FTE employment numbers for Taranaki broken down by industry
between 2001 and 2006. It also provides a national comparison for total employment.
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Taranaki Industry Projections 2006-2026
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November 2007
Table 3.2 Taranaki FTEs, 2001 – 2006
Industry
2001
2004
2005
2006
2005
2006
2001 to
2006
Agriculture
7,395
7,167
6,943
7,307
-3.1
5.2
-0.2
Forestry
133
138
137
119
-0.9
-12.8
-2.2
Fishing
42
42
37
34
-12.2
-7.8
-3.9
Mining (O&G)
555
649
745
817
14.7
9.7
8.0
Food processing
3,732
3,820
3,889
3,785
1.8
-2.7
0.3
Engineering
2,247
2,299
2,554
2,753
11.1
7.8
4.1
Other manufacturing
1,771
2,008
1,801
1,794
-10.3
-0.4
0.3
Utilities
286
298
320
237
7.5
-26.1
-3.7
Construction
2,463
2,971
3,439
3,680
15.7
7.0
8.4
Wholesale & retail trade
6,368
6,791
6,922
6,803
1.9
-1.7
1.3
Hospitality
1,364
1,557
1,714
1,757
10.0
2.5
5.2
Transport & storage
1,221
1,392
1,394
1,414
0.1
1.5
3.0
Communications
346
380
448
402
18.0
-10.2
3.0
Business, finance & property svs
3,782
4,618
4,843
5,253
4.9
8.5
6.8
Government administration
747
776
867
877
11.8
1.1
3.3
Education
2,376
2,570
2,664
2,518
3.6
-5.5
1.2
Health & community svs
3,586
3,527
3,681
3,664
4.4
-0.5
0.4
Cultural & recreational svs
598
644
642
731
-0.3
13.8
4.1
Personal svs
1,066
1,201
1,280
1,275
6.5
-0.3
3.7
Taranaki
40,078
42,849
44,321
45,221
3.4
2.0
2.4
New Zealand
1,532,525
1,690,949
1,751,699
1,809,041
3.6
3.3
3.4
Employment Number FTEs
source:BERL Regional Database, Statistics NZ
%pa change
Over the last five years, the Taranaki region averaged employment growth of 2.4 percent per
annum compared to 3.4 percent per annum for New Zealand. While regional growth was
lower than that seen nationally, much of this was likely a result of supply side constraints – a
shortage of labour due to lower population growth.
The fastest employment growth over the last five years in percentage terms was in
construction, which grew from around 2,460 FTEs to 3,680 FTEs, an increase of 8.4 percent
per annum. Other particularly strong performers were mining (8.0 percent per annum,
almost all within oil and gas); business, finance and property services (6.8 percent per
annum); hospitality, which accounts for most of the tourism industry (5.2 percent per annum);
engineering (4.1 percent per annum); and cultural and recreational services (4.1 percent per
annum).
Only four of the 19 industries experienced falls in employment over the period. The largest
industry, agriculture, saw a decline of 0.2 percent per annum (around 90 FTEs). Other
industries where employment fell were fishing (-3.9 percent per annum); utilities (-3.7 percent
per annum); and forestry (-2.2 percent per annum).
Figure 3.3 shows the trend in employment growth in the Taranaki region compared to New
Zealand employment growth between 2001 and 2006.
12
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
Figure 3.3 Employment trend, 2001 – 2006
100
105
110
115
120
125
2001
2002
2003
2004
2005
2006
E
m
p
lo
ym
en
t i
n
d
ex 2
001=
100
Taranaki
New Zealand
source: BERL
Employment growth in Taranaki has broadly mirrored that of New Zealand over the last five
years, apart from a dip between 2003 and 2004. What makes this remarkable is that
employment growth has been achieved despite lower population growth.
Figure 3.4 compares employment growth in Taranaki and New Zealand at the 19-industry
level over the last five years.
13
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
Figure 3.4 Comparison of employment growth by industry, 2001 – 2006
BERL Regional Databse; Statistics NZ
-0.2
-3.9
8.0
4.1
-3.7
8.4
5.2
6.8
0.5
2.3
0.7
1.8
3.1
-0.1
4.3
2.2
3.6
5.0
3.0
3.7
4.1
0.4
1.2
3.3
3.0
1.3
0.3
0.3
-2.2
5.5
5.6
2.6
4.1
6.9
2.1
2.3
-4.0
-6.0
-6
-3
0
3
6
9
Ag
ric
ul
tu
re
Fo
re
st
ry
Fi
sh
in
g
M
in
in
g
(O
&G
)
Fo
od
p
ro
ce
ss
in
g
En
gin
ee
rin
g
O
th
er
m
fg
U
til
iti
es
C
on
st
ru
ct
io
n
W
ho
le
al
e
&
re
ta
il
H
os
pit
al
ity
Tr
an
sp
or
t &
s
to
ra
ge
C
om
m
un
ic
at
io
ns
Bu
s,
fi
na
nc
e
&
pr
op
er
ty
G
ov
er
nm
en
t a
dm
in
Ed
uc
at
io
n
H
ea
lth
&
c
om
m
un
ity
C
ul
tu
ra
l a
nd
re
cr
ea
tio
na
l
Pe
rs
on
al
Sector__FTE___g__row__th___2__0__0__1'>Sector
FTE
g
row
th
2
0
0
1
-2
0
0
6
(%
pa
)
Taranaki
New Zealand
The general national trend is lower employment growth in the primary industries, while
growth is highest in services as well as construction, wholesale and retail trade, and
hospitality. A lot of this is due to increasing productivity in the primary sector, but also the
growth in demand for services industries, driven in large part by global trends and
population.
The Taranaki region tends to follow the national trends in each industry. It has, however,
seen substantially stronger growth in mining (oil and gas) and engineering, two of the
region’s traditional strengths. In addition, other industries such as construction; hospitality;
and business, finance and property services have added jobs at a faster rate than New
Zealand as a whole.
While the region has seen significant falls in employment in two of its smaller industries,
forestry and fishing, this has been against a background of even greater drops at a national
level. Utilities employment fell at 3.7 percent per annum while there was some growth
nationally (1.8 percent per annum).
14
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
3.3 Taranaki
GDP
The Taranaki economy generated around $4.38 billion in GDP, or 2.8 percent of national
GDP, in 2006.
Figure 3.5 shows the composition of the Taranaki region’s GDP in 2006.
Figure 3.5 Taranaki GDP, 2006
Food processing
9.9%
Engineering
5.5%
Ot her mf g
3.9%
Wholeale & ret ail
10.5%
Educat ion
3.0%
Healt h & community
4.6%
Cultural and
recreat ional
1.1%
Personal
0.9%
Fishing
0.1%
Hospit ality
1.3%
Communicat ions
2.9%
Government admin
2.4%
Bus, f inance & property
16.4%
Transport & storage
3.3%
Agriculture
9.5%
Utilit ies
2.6%
Construction
4.7%
Forestry
0.7%
M ining (O&G)
16.9%
GDP
BERL Regional Database, Statistics NZ
Mining (oil and gas) makes the biggest contribution to the region’s GDP, accounting for 16.9
percent. This is followed by business, finance and property (16.4 percent), wholesale and
retail trade (10.5 percent), food processing (9.9 percent) and agriculture (9.5 percent).
The proportion of GDP accounted for by mining (oil and gas) is unique in New Zealand.
Similarly, agriculture, food processing and engineering are all relatively higher than
nationally.
Figure 3.6 compares the relative contributions to GDP of each industry in Taranaki and New
Zealand in 2006.
15
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
Figure 3.6 Comparison of GDP by industry, 2006
BERL Regional Databse; Statistics NZ
9.5
0.7
0.1
16.9
9.9
1.3
0.9
5.3
15.4
5.0
25.7
4.5
3.7
5.4
2.1
1.1
4.6
3.0
2.4
16.4
2.9
3.3
10.5
4.7
2.6
3.9
5.5
1.2
5.8
1.7
1.9
6.2
4.1
4.9
0.9
0.2
1.2
4.7
0
7
14
21
28
Ag
ric
ul
tu
re
Fo
re
st
ry
Fi
sh
in
g
M
in
in
g
(O
&G
)
Fo
od
p
ro
ce
ss
in
g
En
gi
ne
er
in
g
O
th
er
m
fg
U
til
iti
es
C
on
st
ru
ct
io
n
W
ho
le
al
e
&
re
ta
il
H
os
pit
al
ity
Tr
an
sp
or
t &
s
to
ra
ge
C
om
m
un
ic
at
io
ns
Bu
s,
fi
na
nc
e
&
pr
op
er
ty
G
ov
er
nm
en
t a
dm
in
Ed
uc
at
io
n
H
ea
lth
&
c
om
m
un
ity
C
ul
tu
ra
l a
nd
re
cr
ea
tio
na
l
Pe
rs
on
al
Sector
G
D
P
(%
of tota
l)
Taranaki
New Zealand
Mining (oil and gas) stands out as having the most significant difference from the national
situation. In the region, it accounts for 17 percent of GDP, whereas nationally it accounts for
less than 1.0 percent. Again, this highlights the importance of the oil and gas sector to the
Taranaki region. Similarly, food processing, agriculture, and engineering make relatively
high contributions to GDP at the regional level.
Within the Taranaki region, most of the retail, business and people services make a relatively
smaller contribution to GDP than is seen nationally. This is due to the disproportionately
large contribution of the primary and manufacturing sectors in the Taranaki economy as well
as the smaller population base of the region.
Table 3.3 presents the annual change in GDP for Taranaki broken down by industry between
2001 and 2006. It also provides an overall GDP picture for New Zealand.
16
Taranaki Industry Projections 2006-2026
Venture Taranaki
November 2007
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