MARTA STEEMAN AND TAMLYN STEWART
The impact of the earthquakes on Christchurch businesses has not been as bad as expected, a Statistics New Zealand report reveals.
The "Business demography" report released yesterday shows Christchurch's number of business sites was only 2.5 per cent lower in February this year than February last year.
The report compares the number of business locations or sites in February this year with February last year before the destructive February 22 earthquake.
Christchurch had 37,340 business sites in February last year and 36,420 in February this year. That is only 920 fewer business sites.
It's the same for the Canterbury region. The 63,470 business locations in February this year is only 960 lower than the 64,430 in February last year.
The number of employees in Christchurch was only 1600 fewer in February this year, at 184,000, than February last year. And in Canterbury there was a slight rise in the number of employees to 256,600.
But Christchurch has a lot more businesses in building and the construction industry and a lot fewer cafes, restaurants, pubs, tourism businesses and education services, the report shows.
The numbers of painting and decorating businesses rose more than a third in the year to February 2012 , the number of house building businesses increased 11 per cent and other construction businesses rose 14.5 per cent.
The number of cafes and restaurants fell 19 per cent and pubs, taverns and bars dropped 13.5 per cent.
Christchurch economist Robin Clements, of research house UBS, said he expected the impact to be a lot worse.
"That's what shocked me," Clements said.
Many businesses just got on with the job and set themselves up in all sorts of alternative locations.
It suggested the economic loss to the region was not as great as some of the "scaremongers" were suggesting.
Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said the small decrease in business sites in Christchurch was in line with feedback from membership. The region was "still in pretty good shape and well positioned to engage in the rebuild."
The report gives more insight into the flight from the CBD. It shows about 18,200 fewer employees in the CBD in February this year - nearly 40 per cent fewer - and 1975 fewer business sites (about 34 per cent down) than February last year.
The western and southern suburbs took the migration from the centre.
They had an extra 16,710 employees in February this year, a 6 per cent increase, and an extra 1250 business sites.
FAST RELOCATION KEPT QUAKE-HIT FIRMS ALIVE
Winning the race to find new premises in the western suburbs of Christchurch ensured the survival of many businesses after the February 2011 earthquake.
Hi-tech manufacturer Enatel and web development company Hairy Lemon were two of those - Enatel relocating to Wigram and Hairy Lemon to Hornby.
Enatel managing director Gary Foot said one advantage of relocating was that the business, previously spread across four separate business sites in St Asaph and Tuam streets, was now in one much larger site in Wigram.
The hi-tech manufacturer produces standby power supplies for the telecommunications industry and solar inverters which convert electricity from solar panels into electricity suitable for everyday use.
Enatel's new location is close to the airport but traffic congestion was a problem. Morning and afternoon rush hours were "just a nightmare", Foot said.
But it was something to "grin and bear" because all the activity in the area was rebuild-related.
The firm was paying higher rent than before the earthquake but that was because its premises were much larger, Foot said. "But clearly there has been a significant increase in rental as a result of the earthquake."
Before the quake, one site had been offered for $100,000 a year, on a three-year lease, Foot said. Immediately after the quake, the landlord for that site had wanted a 10-year lease for $200,000 a year.
Another tenant accepted those terms within 48 hours.
Fortunately the firm had had its eye on its Wigram site before the September quake and was able to negotiate a seven-year lease. The company spent $1 million on a new fitout.
Web development company Hairy Lemon co-founder Graham Dockrill said its relocation to Hornby had been vital.
"Finding facilities that allowed us to continue business after the event, that continuity of business was incredibly important."
However the location, fit-out and size of its Hornby office was "not ideal", with only about half the office space of their former Victoria St site.
Rent was similar to what the firm had been paying in Victoria St.
The firm is returning to the city centre and is about to sign a lease for new premises.
- ? Fairfax NZ News
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Public release date: 18-Oct-2012
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