Attachment 1 PRESENTATION OF HAMILTON ’ S ECONOMY May 2015
Conversely, the city has a larger proportion than in New Zealand as whole of people HAMILTON’S ECONOMY in its employed workforce who have higher level qualifications (ie, diploma, degree or post-graduate qualifications). Hamilton’s gross domestic product (GDP) grew strongly in 2014. It has maintained steady growth over the longer term. June 2014 GDP growth is 3.4 per cent. Hamilton is a growing city. It has reached a scale where it is now a very diverse, confident and strong place to invest in. The following key facts about Hamilton’s economy underpin Auckland’s was 2.7 per cent. that Hamilton is a very safe place to do business. Hamilton’s productivity is 2.4 per cent, with GDP per person approximately $84,500 Hamilton’s population currently stands at approx imately 154,000 people. ($84.5K). Between 2013 and 2040, the city’s population is projected to grow by almost 40 There are 31,000 people in highly skilled jobs from a total employment population per cent. of 81,500 jobs. It is New Zealand’s largest inland city. Hamilton’s GDP in the professional, scientific and technical services grew by 6 per cent each year between 2003 and 2013. It is just over 120 kilometres (km) from New Zealand’s largest and fastest growing city, Auckland. BALANCING THE BOOKS Hamilton is also 100km from Tauranga, New Zealand’s fastest growing sea port. Since 2008, the Council has been spending more than it is earning and borrowing to pay the Hamilton’s population is youthful, compared to Auckland, Tauranga, Christchurch difference. Three years ago we made a plan to change that and balance the books by 2017. and New Zealand as whole. The proportion of Hamilton’s population in the under- 30 age group is projected to decline gradually until 2040, but the rate of decline will Balancing the books is critical. It means we will be able to pay for new assets and upgrades be less than elsewhere in New Zealand. without the same amount of borrowing. Houses in Hamilton are, on average, half the price of houses in Auckland. They are also almost 30 per cent below the national average. The labour force participation rate in Hamilton is above the national average. Half the employed workforce in Hamilton is in the ‘ Highly Skilled ’ and ‘ Skilled ’ occupations. Hamilton has a lower proportion of unqualified and lowly qualified people in its employed workforce than New Zealand as a whole and around the same proportion of people in these categories as Auckland has.
1. POPULATION GROWTH Hamilton is a fast growing city; in fact it’s one of New Zealand’s fastest. Hamilton has a population of more than 153,000, with around 60 per cent of people under the age of 40. In 30 years, Hamilton’s population is predicted to increase by 60,000 people that represents population growth of around 40%. Hamilton’s median age is lower than New Zealand . There are approximately two million people in the Auckland- Hamilton- Tauranga ‘golden triangle’ . This is projected to rise to around three million by 2040. POPULATION Hamilton City Auckland Tauranga City Christchurch City Greater Hamilton New Zealand Under 30 30 and over Under 30 30 and over Under 30 30 and over Under 30 30 and over Under 30 30 and over Under 30 30 and over 2006 48% 52% 44% 56% 38% 62% 41% 59% 42% 58% 45% 55% 2013 47% 53% 43% 57% 37% 63% 39% 61% 40% 60% 44% 56% 2016 47% 53% 43% 57% 38% 62% 38% 62% 40% 60% 44% 56% 2021 46% 54% 41% 59% 37% 63% 37% 63% 39% 61% 43% 57% 2026 45% 55% 39% 61% 36% 64% 36% 64% 37% 63% 41% 59% 2031 44% 56% 38% 62% 35% 65% 35% 65% 36% 64% 40% 60% 2040 43% 57% 36% 64% 33% 67% 33% 67% 35% 65% 36% 64% Source: Statistics New Zealand, BERL Calculations
2. GROWTH CITY GROSS DOMESTIC PRODUCT MIGRATION Hamilton’s approx imately $7.2 billion dollar ($7.2B) economy grew by 3.2 per cent There is continued growth in people migrating to Hamilton. in the year to December 2014. People are actively choosing to move to Hamilton as a place to live work and enjoy. Consistently for the last four years the Hamilton economy has continued to grow. Hamilton generates a greater proportion of its GDP in the professional, scientific and technical services.
17 per cent of Hamiltonians have a degree or post-degree qualification. HOUSE PRICES Nearly 40 per cent of Hamiltonian households earn over $70K per annum. Twenty per cent of Hamiltonians earn over $100K. Sixteen per cent earn over $70K. Hamilton house prices continue to grow but not at a rate where they are unaffordable. HAMILTON’S DIVERSE BUSINESS SECTOR (GDP BY SECTOR) Both the growth in the number of houses being built and the value of those houses Hamilton’s diverse economy is represented by the proportion of sectors that make being built show a strong economy, without the overinflated prices of other cities. up the GDP of Hamilton. Nearly 50 per cent of Hamilton’s economy consists of business, construction and manufacturing. Hamilton’s economy and its diversity show that although it is an important part of the Agri cultural (‘ Agri ’) sector, it has a very diverse economy. Hamilton has reached a scale where its sophisticated manufacturing and high quality service sector are a significant part of ‘NZ Inc’s’ broader economy. Other 13% Business 25% SKILLED WORKFORCE Retail/Wholesale Approximately 50 per cent of the employed workforce is in Hamilton is in the 21% ‘H ighly Skilled ’ and ‘ Skilled ’ occupations. Construction As a proportion of its employed workforce, Hamilton has a larger proportion of 7% workers with post-secondary qualifications. 14 per cent are managers. Education 24 per cent are professionals. Health 5% 12 per cent are technicians. 12% Manufacturing Source: BERL Regional Database 17%
ROOM FOR GROWTH Infrastructure development is preparing the city for growth for over 200,000 people. Hamilton has outstanding roads and major routes that connect the economic areas within the city, the Waikato, and to the rest of New Zealand. Hamilton invests in a level of capital expenditure that ensures we have appropriate infrastructure to meet the city’s future growth.
TIMELINE FOR GROWTH Hamilton has a 30 year Infrastructure Plan. Hamilton is growing and Hamilton City Council is preparing to invest into the assets and infrastructure that is required to ensure that growth isn’t held back.
Both areas also specialise to a lesser extent in the manufacturing of transport equipment and machinery and equipment. There may also be some vertical integration in the latter industry 3. WORK AND LIVING because both areas also specialise in wholesale machinery and equipment. LIVING IN THE CITY Hamiltonians are a well-educated and enterprising community. There is continued strong Hamilton’s central city is a growing area when it comes to population. Since 2001, growth in the service sector and ‘ high tech ’ manufacturing within the city. 900 more people are now living in the inner city. Overall, there is a movement towards professional/scientific employment and an increase in inner city living. The movement towards a more professional services The greatest increase was the 20-34 age group. The largest percentage change to economy has also seen the central city’s GDP grow. the central city by ethnic group (500 people) identifying themselves of Asian descent. What this shows is that Hamilton’s central business district (CBD), like that of Auckland and Wellington, is attracting professional services which are gravitating to The number of dwellings within the central city also increased by the same rate as the central heart of Hamilton. that of residents. Apartments/townhouses increased from 492 in 2001 to just over 1000 in 2013. BUSINESS/EMPLOYEES RIVER PLAN Professional (scientific and technical) services have grown - this category now makes up one of the larger groups of employees in the central city (312 employees). An important amenity for Hamilton is the Waikato River. In 2014 an integrated 30 year plan to provide clarity and certainty regarding the development of the River There are 18,900 employees within the central city and approximately 70,000 in was developed. It provides a strategic guide for council, developers and business employment in Hamilton overall. regarding the development of the Waikato River. The area where Hamilton’s central city is strongest is professional services and healthcare. http://www.hamiltoncityriverplan.co.nz/ SPECIALISED MANUFACTURING Hamilton manufacturing industries are highly specialised in the following aspects of manufacturing: Polymer product and rubber products. Fabricated metal products. Primary metal and metal products.
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