REINVENTING NEW ZEALAND - KEY FINDINGS FOR NEW ZEALAND FROM THE 24TH PWC CEO SURVEY
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Reinventing New Zealand Key findings for New Zealand from the 24th PwC CEO Survey pwc.co.nz/ceosurvey I March 2021 click here to start our interactive report
A year
We can expect some volatility as the country For this relatively positive situation, we can
recovers and the impacts the pandemic thank the timely and bold action taken by the
are proving to be uneven among different Government, a cohesive community response
on from
industries and sectors of society. However, we from New Zealanders and the agility and
have also seen the public health crisis resilience of our businesses.
contained and stronger than predicted
COVID-19
economic resilience. For example: After the successful public health response to
managing COVID-19, the critical focus must
• Business confidence has rebounded1 now be on a successful vaccine roll-out – this
and quarterly GDP numbers have largely will create a platform for the cautious and
recovered from the slump in June 20202 controlled reopening of our borders. As a small
following the lockdown. GDP in the trading nation, a long way from our markets
One year on from the first
December 2020 quarter was down 1% and with a small domestic economy and
COVID-19 induced lockdown compared with the same quarter in 20193. labour pool, our links to the rest of the world
in New Zealand and, despite underpin our future economic sustainability.
• Unemployment figures are recovering from
the most recent Alert Level
the high of 5.3% in November 2020 with We encourage the Government to
3 lockdowns in Auckland, the current rate at 4.9%4. Labour force communicate a strategy to safely reopen
the country finds itself in a participation is on the rise, moving toward the border so business can plan for the next
better-than-expected situation. pre-COVID levels, up to 70.2% from a low of phase of recovery. We acknowledge that,
69.9% in June 2020. in this uncertain and volatile environment,
it’s difficult to commit to a set timeline.
• The fiscal position is stronger with net However, businesses are used to dealing with
debt now forecast at only 44%5 of GDP uncertainty and, if the strategic direction and
by 2025. This means less burden on future criteria for reopening are clear, businesses
generations and more capacity to respond can plan and adapt their operational response
to the next shock. as required.
Mark Averill 1
2
NZIER Quarterly Survey of Business Opinion December 2020, released 19 January 2021 and NZIER Consensus Forecasts, 15 March 2021
Stats NZ December GDP release showed September 2020 quarterly growth 14% and annual growth -2.2%
CEO and Senior Partner 3
4
NZ Stats December 2020, released 18 March 2021
Stats NZ Labour Market Statistics, December 2020, released 3 February 2021
PwC New Zealand 5 Budget Policy Statement 2021, 9 February 2021
2 I 24th Annual CEO Survey
Seizing the opportunity for change
The massive shock of the pandemic, and for further investment in infrastructure remains a
New Zealand’s success in responding to that shock, pressing issue. Greater investment that supports
provides us with a unique opportunity to tackle some a productive and sustainable New Zealand will be
deep-seated, long-standing issues and reinvent our important for the country to thrive. This includes
country for the benefit of all. addressing the housing shortage and the increasing
inability to buy a home for many.
To do this, we need to capture the momentum and
success of our short term pandemic response and • Equity including health equity and wellbeing.
direct that same energy, focus and policy ambition to This means improving outcomes for all communities.
reimagining our society and the role of business in that Part of this includes confronting New Zealand’s
future New Zealand. entrenched health needs by improving access and
financial stability for the sector.
Some of the critical issues we believe need to be
addressed include: • Immigration. People coming into New Zealand
have an important role to play in sustaining the
• Sustainability and climate change. The results growth and development of this country to boost
of this year’s PwC CEO survey suggest these productivity. We need people and investment to
issues are still on the agenda for business leaders. fuel our workforce, innovation and tax base at a
The urgency of addressing climate change remains time when birth rates are low6 and the average age
and surpasses COVID-19 as a long-term challenge is increasing7. But immigration is a complex social
for the world. dynamic and requires deliberate planning and
investment in support.
• Upskilling for a new world. Ensuring
New Zealanders are prepared to work, engage and • Maintaining social cohesion. This will be key for
innovate in a complex technology-orientated and moving past the COVID-19 era and into a better
dynamic world is imperative. future for all New Zealanders. It requires a coherent
response to critical issues like housing and health in
• Housing affordability and infrastructure
the short term and policies that address inequality in
investment. Our survey results show the need
the long term.
6 NZ Stats. In December 2020, the total fertility rate hit a record low of 1.61, well below the annual average of 1.97 over the last 30 years.
7 NZ Stats. Population estimates by Age. Median age increased from 31.5 in 1991 to 37.6 in 2020.
3 I 24th Annual CEO Survey
Where next?
If we can seize the opportunities to will drive community and investor focus changed by COVID-19 we encourage
reinvent our country, we can aspire to on that response. businesses to reflect on their strengths
a more prosperous, sustainable and and weaknesses highlighted by
inclusive future for all New Zealanders. • Digital transformation. COVID-19 has the past year and think about how
led to rapid digital acceleration for all these can be used to improve their
Business, along with the Government, businesses. Businesses need a ‘whole continuity frameworks. In this year’s report, we have shaped the
has a key role to play in reimagining of business’ digital strategy to ensure survey findings around these themes including
New Zealand. Strong businesses provide they have the right capabilities to meet • Infrastructure. The Government is commentary from PwC’s experts on each
jobs, increased skills and opportunities the needs of their workforce, customers focusing on roading, rail and water issue and recommendations provided by
and tax revenues that contribute to the and wider stakeholder group. infrastructure and business should CEOs for rebuilding New Zealand in the wake
strength of the communities in which understand the impacts of that of COVID-19.
we operate. • Portfolio review. Strong corporate investment and plan for its involvement,
earnings are expected this year and both directly and indirectly in the We encourage you to read more on these
We see some key areas of focus it’s likely that business valuations will downstream benefits. Infrastructure issues in a global context via PwC’s Take on
for business: remain high. Investors have funds generally could benefit from improved Tomorrow series which tackles today’s most
and are looking for opportunities to pricing signals so that we have a better pressing issues to help leaders think about
• Sustainability and climate change. generate returns in a low interest rate what’s next.
understanding of what infrastructure
With the release of the Climate environment. This is driving increasing we need.
Change Commission’s report and levels of merger and acquisition Thank you to the CEOs who shared their time
mandatory climate-related disclosure transaction activity. We encourage and invaluable insights in this year’s survey.
making its way through parliament, businesses to ensure that their I hope you find this report thought provoking.
there is now a definite driver for strategies are aligned to making the
transformation. Business needs to be most of these conditions.
considering its environmental impact
and how it will survive and thrive in the • Risk management. Managing risk
transition to a low carbon economy. has never been more important. As we
Increased reporting and transparency adapt to doing business in a world
Mark Averill
CEO and Senior Partner
PwC New Zealand
4 I 24th Annual CEO Survey
What’s on the mind of Q: How concerned are you about threats
to your organisation’s growth prospects?
New Zealand CEOs? (showing only ‘extremely concerned’
responses)
New Zealand has much to be thankful for and this sense of optimism is evident in the responses from 2020 2021
the 89 local CEOs who took part in this year’s survey.
73%
are confident about revenue growth Climate change and 42%
environmental damage
over the next 12 months.
85% are confident over the next 3 years
Availability of key skills 41%
48%
expect headcount will increase
in the next 12 months Over-regulation 40%
Trade conflicts 35%
39%
believe global economic growth will
improve over the next 12 months
Policy uncertainty 35%
Yet, this is below Australian CEOs at 70%
and global at 76%
5 I 24th Annual CEO Survey
CEOs recommendations for rebuilding New Zealand in the wake of COVID-19 include:
Q: Which outcomes do you think should be priorities for business to ‘We need to develop ‘New Zealand has an
help deliver in New Zealand? (showing the top three responses) our export industries to opportunity to create a food
reduce the over reliance story and promote a quality,
on tourism, foreign health-based message to
The good health and wellbeing 60% a world concerned about
of the workforce
students and immigration
as the key drivers of food standards. We need to
economic growth.’ support this with improved
A skilled, educated and 56%
adaptable workforce infrastructure (water,
labour), environmental
Reducing climate change and 55%
standards (use of inputs,
environmental damage
‘We need a blueprint for measurement), and
the economy in 2050 that consistency of quality.’
delivers our climate change,
economic and social
objectives. What industries
do we believe will thrive ‘We can’t waste this time.’
and what will struggle?’
6 I 24th Annual CEO Survey
CEOs recommendations for rebuilding New Zealand in the wake of COVID-19 include:
‘We need to build back ‘We should align significant ‘Develop a clear long-
with a focus on addressing additional government term strategy based
significant long-term spending with long-term on the principles of a
issues around equality, climate change mitigation/ circular economy.’
infrastructure and housing.’ adaptation requirements.
We can’t afford to do these
separately. We need to focus ‘Keep borders closed to
‘The world is moving on health outcomes – where protect and reinforce a
towards a circular the health of the nation focus on looking after
bioeconomy and away from goes, the nation goes.’ New Zealanders.’
the transitional, linear,
petrochemical-based
economy. New Zealand has ‘Position New Zealand as a ‘Increase MIQ capacity
huge natural advantages in global thought leader and and open it up to more
this future and our recovery as an ethical and innovative non‑New Zealand citizens
needs to be built to allow us country. Instigate bold whose skills are needed
to catch and benefit from initiatives around climate to provide short-term
that wave.’ change and bridging our capacity within the
social divide.’ economic recovery.’
7 I 24th Annual CEO Survey
Climate change is
27%
of CEOs are ‘extremely concerned’
about climate change and environmental
a key business risk damage compared to 42% in 2020
67%
In the wake of COVID-19 climate change have factored in climate change and
remains a key risk to business growth for environmental damage into their
New Zealand CEOs. But, with only 27% of
strategic risk management activities
CEOs stating they are ‘extremely concerned’
in comparison to 42% in 2020, it appears it compared to 40% globally
is now a less pressing issue. Pandemics and
health crises, alongside knock-on threats like
70%
supply chain disruption are, predictably, the of CEOs plan to increase long-term
current focus for business leaders.
investment in sustainability and ESG
However, when asked for a recommendation initiatives over the next three years as a
to rebuild New Zealand following the impact result of COVID-19
of COVID-19, a significant number of
business leaders mentioned climate change,
64%
environment and sustainability concerns.
These issues are still clearly on the radar. of CEOs believe the Government’s
recovery plan will effectively
Similarly, a significant number (70%) plan to
increase long-term investment in sustainability
balance short-term economic needs
and ESG initiatives as a result of COVID-19 and with long-term environmental goals
67% are now factoring in climate change and compared to 45% globally and 41%
environmental damage into their strategic risk
in Australia
management activities.
8 I 24th Annual CEO Survey
“New Zealanders can’t ignore climate However, any work in this area needs to be
change any longer. The Climate Change done with integrity and authenticity to have
Commission’s draft advice recommends a any real bearing on reputation perception.
range of ambitious policy levers and actions
to help New Zealand achieve its carbon One critical challenge facing publicly listed
neutral targets. If implemented these will companies and large financial services
have far reaching implications on every organisations is the Government’s intention
business in the country. Action needs to be to mandate climate-related financial
taken now to progress the transition to a low disclosure – a proposal currently making
carbon future. its way through parliament. Impacted
organisations will be required to comply or
I think climate change brings considerable explain based on standards currently being
potential. So much focus is given to the risks drafted by the External Reporting Board
and the costs associated with compliance, (XRB). These disclosure requirements could
“
but it’s not often you get to really look at take effect as early as 2023.
your business model and disrupt how
you operate. It’s important for these organisations to begin
identifying and assessing risk now to ensure
Climate change impacts every aspect of they are ready to meet the requirements.” Climate change
a business from how it sets its strategic
direction, to how it continues to generate impacts every aspect
revenue, and the operating model that of a business from
supports it. The potential to redefine your
business is huge. Some businesses will reap Annabell Chartres how it sets its strategic
the benefits and others will need to make Sustainability and Climate direction, to how it
fundamental shifts to survive. Change Lead Partner
continues to generate
Climate change also presents an opportunity
for reputational advantage for first movers.
revenue, and the
They have the opportunity to own that space operating model that
and show true leadership within their sector.
supports it.
9 I 24th Annual CEO Survey
CEO recommendations for rebuilding New Zealand include:
Further reading
How ESG will drive the next
‘We need to take the ‘New investment needs to
wave of transformation
opportunity to rebuild a be considered through a
Including insight into what it might look like.
more environmentally climate change lens.’
sustainable economy.’ How businesses can bridge the
gap and achieve net zero
Business leaders need to act now to meet the
‘New Zealand needs to demands of science, government, investors and
‘Let’s focus on climate transition to the 2050 net society at large.
change adaptation and carbon neutral goal by taking PwC Net Zero Economy Index
growing our economy a whole of economy approach
Tracking the progress G20 countries have made
in an environmentally that fosters innovation and to reduce energy-related CO2 emissions and
sustainable manner.’ avoids red tape.’ decarbonise their economies.
How we can help
PwC advises clients across the New Zealand economy on a range of
sustainability initiatives, carbon reduction strategies and reporting. Our team
includes leading specialists in sectors that are at the forefront of the transition
to a renewable future, including the energy, transportation, agriculture, and the
digital sectors.
10 I 24th Annual CEO SurveyDigital transformation
can unlock “
Many organisations are realising they no longer have
a choice and have to transform to remain competitive.
productivity gains the right technology to support your sure we have the right infrastructure in place
business transformation and not the other here in New Zealand so organisations feel
way round, which is often the case. safe that they have choices on where data
COVID-19 has accelerated the need for “The wheels have been turning on can sit. On another, there is ensuring we
digital transformation across the board. digital transformation initiatives for To be truly effective, businesses need
are able to attract and retain the right talent
Over 80% of New Zealand CEOs are planning some time but following the impact of the ability to have digitisation across their
to work here. This is difficult right now with
to increase their long-term investment in COVID-19 the momentum, drive and end-to-end process. Having a website can
the closed borders. A New Zealand-wide
digital transformation initiatives over the scale has increased exponentially. be a start of a digital journey, but it is only a
solution to this is important as we navigate
next three years as a result of the pandemic. Many organisations are realising they channel and a window into your organisation.
the pandemic and the future.
Meanwhile, 64% of local business leaders no longer have a choice and have to It’s the whole backend solution that’s
are ‘concerned’ about the speed of transform to remain competitive. For this important to truly understand and get right. I would like to see the Government support
technological change. reason, I see transformation remaining and incentivise New Zealand as an attractive
Here in New Zealand, we see this challenge
and evolving as a significant focus area place for providers and talent to come, along
first hand. Many big box retailers can
But, what about the role of government in for New Zealand businesses. with supporting skills and training in STEM
operate online at different levels of
digital transformation? 57% think adequate through both school and further education.”
Similarly, we are seeing increasing lockdown, however the ability to execute the
physical and digital infrastructure should be a
maturity around cloud services. It isn’t a end-to-end sale and delivery of the goods
government priority. Investment in this area is
conversation about whether a company is challenged by a non-digital supply chain.
seen as vital to New Zealand’s future.
‘should’ use cloud-based technology, it’s This leads to higher overheads and brand
about ‘when and how’ they do this, with challenges when they are unable to fulfill and
Tracy Taylor
scale and trust, knowing that data and deliver on an order.
Consulting Markets &
security is key. Maturity in the local market Alliances Lead Partner
The Government has a role to play in digital
about cloud is growing. But, there is a
transformation. On one level there’s making
conversation needed on how to choose
11 I 24th Annual CEO SurveyCEO recommendations for rebuilding New Zealand include:
81%
Q. Which aspects of your workforce strategy are you changing to make the of CEOs plan to increase long-term
greatest impact on your organisation’s competitiveness? investment in digital transformation
(showing the top three responses) initiatives over the next three years as a
result of COVID-19
64%
Our workplace 52%
culture and behaviours
of CEOs are ‘concerned’ about the
speed of technological change
Our focus on the health and 48%
well-being of our workforce
57%
of CEOs think adequate physical and
Our focus on productivity through 35% digital infrastructure should be a
automation and technology
government priority
12 I 24th Annual CEO SurveyFurther reading
Jumping onto the right side of the
AI divide
The AI performance gap widened
during the COVID-19 crisis.
How do you measure up?
‘We need to accelerate ‘New Zealand needs Simplifying cybersecurity
digital transformation and acceleration of technology/ Have our institutions become too
infrastructure investment.’ innovation initiatives to complex to secure?
enhance productivity and Adapting to the new world
sustainability.’
Facing the challenges of the
post-COVID landscape.
How we can help
PwC’s Consulting practice provides the insights, services and advice to solve
your biggest problems. We’ll help you to transform your business and maximise
opportunities – whether that involves strategy planning, aligning costs, rethinking
human capital, optimising technology, managing digital change or refining
operations and systems. Our people will apply their skills, experience and
industry-leading resources, to guide your organisation to the next stage.
13 I 24th Annual CEO SurveyRisk conversations “Over the last year we’ve seen the risk
landscape change.
strategic planning horizon but need to
be on the radar. Likewise, there has
must be broadened
been insufficient focus on ‘black swan
With more people working from home, events’ – the catastrophic and rare risks.
cyber security and information security These events are getting more focus.
risks have increased. You’ve got Not for the risks that may exist in them,
people dealing with highly sensitive but rather the impacts that will result
material in a home environment and from them.
CEOs are reassessing their focus on risk friends and family in close proximity.
following the impact of COVID-19. This means Documents and screens can easily be This shifts the conversation to the
switching from thinking about risk in the short- viewed and telephone calls overheard. catastrophic end of the spectrum and
term to planning for potentially catastrophic This significantly impacts confidentiality. we’re seeing boards wanting to really
events well beyond the immediate horizon. It’s something businesses have to understand this. They are asking the
actively address. questions – are we doing enough and
Ninety-one per cent of New Zealand CEOs should we be doing it differently?
say they are rethinking their organisation’s We’ve also seen an increased focus
tolerance for risk. At the same time, 87% note on risk in change. Organisations are It’s important that businesses capture all
they are increasing their focus on collaboration looking at how they can take cost out the learnings they’ve gained over the last
with supply chain partners to manage risks, and do more with less. This is true for year and factor these into their business
while 73% disclose they are taking the companies that haven’t been massively continuity framework. It will lead to
“
opportunity to increase their focus on digitising affected by COVID-19 too. It’s an better outcomes.”
their risk management function. opportunity to reassess how they are
operating and build back better to their
When it comes to which risks are being
Organisations who factored into management activities,
strategic advantage. But, change has
risks. Organisations who consider risk Lara Hillier
consider risk early, unsurprisingly pandemics and health crises early, as well as design the change, are Internal Audit, Risk
are top of the list (84%). This is closely followed
as well as design the by more traditional risk considerations which
the ones who come out as the winners. & Compliance Lead
Partner
change, are the ones have been accelerated by the pandemic – Many organisations have realised they
cyber threats (79%) and availability of key
who come out as the skills (78%).
have not done enough about emerging
risk – those risks that are beyond the
winners.
14 I 24th Annual CEO SurveyQ. Which of the Q. How are you increasing Further reading
following threats are your risk management
explicitly factored into focus as a result of
How disruption equips us all to rethink
your strategic risk COVID-19?
and reinvent
management activities? COVID-19 and Brexit brought greater care,
creativity and innovation to the fore.
Compliance. Transformed
Is your approach to compliance fit for the future?
Pandemics and other health crises 84% How to respond when a crisis becomes
the new normal
As the world comes to grips with the effects of
COVID-19, businesses can focus on six areas
Cyber threats 79%
in order to help both their people and their
bottom line.
Availability of key skills 78%
How we can help
The accelerating pace of change is creating insecurity, uncertainty and risk.
Our experience and expertise can help build the resilience that acts as your
45%
organisation’s immune system – protecting you from the unexpected and
of CEOs believe their organisation should be ensuring a speedy recovery if problems occur. Our strategy is to ensure that the
doing more to measure key risks identification of risk is an opportunity to prepare, respond and emerge stronger.
15 I 24th Annual CEO SurveyM&A Q. Which of the following activities are you planning in
the next 12 months in order to drive growth?
2020 2021
activity is Seek operational efficiencies 74%
stronger Pursue organic growth 72%
than ever Launch of a new product or service 54%
M&A activity around the globe is on the
rise. This trend is mirrored in New Zealand Form a new strategic alliance or joint venture 51%
with a high volume of deal flow – in the last
six months we have seen 159 transactions
completed in the local market. Last year 26% Enter a new market 33%
said they were planning new M&A activity to
drive growth but this year the number has
increased to 38% – a noteworthy jump.
Pursue 26%
When asked why they are pursuing M&A, the new M&A
majority of business leaders (41%) pointed
to consolidation within the sector or industry Collaborate with 25%
they operate in. Over the last year, we have entrepreneurs or start-ups
seen consolidation in the market become
increasingly common, particularly in sectors
Sell a 11%
where CEO’s are trying to build on core
business
competencies and business purpose.
16 I 24th Annual CEO Survey“
Investors used to see these as fairly unstable assets but this perception has now
changed with the sector being key to the country’s recovery.
“We saw a strong return of M&A activity foot in New Zealand or met the vendors led to increasing interest from buyers in
over the second half of 2020 with a wave face-to-face. For example the sale different sectors. Take healthcare assets
of completed deals and new transactions. of Mighty Ape to Kogan in Australia. as an example. Investors used to see
We don’t see this trend changing This scenario is one we wouldn’t have these as fairly unstable assets but this
anytime soon. seen 18 months ago. perception has now changed with the
sector being key to the country’s recovery.
Strong equity markets globally, open debt We have found that working on deals
markets and plenty of available capital virtually has made the whole process There are still sectors that are under a
means that many businesses in strategic more efficient and buyers are seeing the significant amount of stress like tourism
industries like healthcare, food, education, benefits. There was a well-established and traditional bricks and mortar retail.
as well as those with online platforms, are process for buying and selling. We have seen less M&A and restructuring
in high demand. But, through using technology, it has been activity in these sectors than expected but
streamlined. Presentations and meetings this is likely to change. I expect to see a
Private equity firms who assessed their can be lined-up in a way that doesn’t fair amount of consolidation as businesses
portfolios in the early part of 2020 are affect the operating rhythm of a business create synergies and efficiencies
now looking at their entry and exit options or take people out for long periods. to survive.”
in 2021. Travel time is no longer a problem.
Any concerns about border closures Building trust in the information provided
and travel restrictions leading to reduced to buyers is crucial. We are seeing
market activity have been completely businesses investing in better data insights
dispelled. We are doing, and seeing, so they can demonstrate and evidence Karl Dwight
substantial transactions where the buyer their strategic advantage to potential M&A Lead Partner
or investor is overseas, has never set acquirers and investors. COVID-19 has
17 I 24th Annual CEO SurveyFurther reading
Global M&A Industry Trends
Fierce competition ahead
for dealmakers shaping the
Q. What are your Q. Which three countries post-pandemic economy
primary motivations to do you consider most
Can private equity save the world?
pursue new M&A? important for your
organisations’ overall Dynamic investors are well-situated
to bring their capabilities to bear on
growth prospects in the
issues like decarbonisation.
next 12 months?
Rebuild New Zealand:
private equity
How can private equity help
New Zealand’s recovery?
Consolidate a sector/industry 41%
your organisation operates in
How we can help
Expand/diversify your 26% Our Corporate Finance team is the largest in the country, with a proven track
organisation’s product/service mix record across a diverse range of sectors. We offer a seamless delivery across
transaction services, tax and other professional services, and our well known
brand offers additional credibility to our clients in the eyes of prospective
Acquire capabilities (including 15%
counter-parties.
talent, tech or processes)
18 I 24th Annual CEO SurveyInfrastructure remains specialised workforce we need to support
the sector. Simply put, we don’t have enough
developing projects. Understanding these
issues will help drive overall productivity in
a crucial issue for
people with the right skills in New Zealand the economy which leads to growth and
and need to be able to bring people in. better outcomes for New Zealand.
Training takes time, so tackling this problem
now will be key to getting more projects off The Climate Change Commission’s
New Zealand
the ground. draft report identifies transport as a key
sector where emissions can be reduced.
Some elements of infrastructure are delivered Developing pricing signals in the transport
inefficiently across the country however area is a key first plank to lowering emissions.
there are moves underway to rectify this Those signals, as outlined above, have the
in some areas. A good example is the added benefit of helping work out what
The need for quality infrastructure “Infrastructure remains an important driver
Three Waters Reform Programme which Infrastructure we need.”
development has long been trumpeted. of employment and growth. And, because
was announced last year. The Government
Following the impact of COVID-19 of this there was a lot of talk about an
should be applauded for this initiative – it will
has brought about discussion of an ‘infrastructure-led’ economic recovery last
greatly improve drinking, wastewater and
‘infrastructure-led recovery’ given year. There is no clear sign of the sector
stormwater infrastructure. The reforms will be
the sector’s role as an enabler of driving recovery yet but that’s because
fundamental to delivering more efficient water Carl Blanchard
productivity and economic growth. there weren’t a lot of well-planned projects
infrastructure across New Zealand while Property, Infrastructure
that could get underway quickly and
ensuring water is safe to drink and managed and Capital Lead Partner
Almost one year on from the onset of create jobs.
in an environmentally sustainable way.
the pandemic, infrastructure remains
“
front of mind for New Zealand CEOs This might not matter too much right now
There are other examples of inefficiency;
with 63% saying they are concerned because unemployment is low. It will
road, rail and water could all benefit from
about the country’s inadequate basic matter over time though as the economy
better pricing. Getting the correct pricing
infrastructure. Business leaders also has not fully recovered and we may still
need the sector to drive growth.
signals is an important part of delivering Getting the correct
see infrastructure (both physical and
digital) as a key government priority.
the right infrastructure and this mechanism
needs to be used to better effect. Pricing
pricing signals is an
One of the key issues the sector is facing
is the lack of human capital. The border helps people who are using infrastructure important part of
restrictions are impacting the ability to to understand when and how they are
going to use it. Knowing what you need is
delivering the right
source and retain the highly skilled and
crucial, particularly for planners and people infrastructure...
19 I 24th Annual CEO SurveyCEO recommendations for rebuilding New Zealand include:
‘Invest in big scary ‘We need investment in Q. Which of these outcomes do you think should be government
infrastructure projects that infrastructure now to priorities in New Zealand? (showing the top three responses)
will set us up for the future.’ stimulate our economy and
reduce unemployment.’
A skilled, educated 70%
and adaptable workforce
‘Accelerate the building/
‘Ensure that government Adequate physical 57%
supply of housing for low and digital infrastructure
income groups. This will policy allows for the
create jobs and a stronger rapid implementation of
Reducing climate change 46%
social base by reducing some infrastructure required to and environmental damage
of the income inequalities.’ support the country into
the future.’
63%
of CEOs are ‘concerned’ about
inadequate basic infrastructure
20 I 24th Annual CEO SurveyFurther reading
Private–public infrastructure
partnerships can spur a green recovery
Economic stimulus plans that support
clean energy and decarbonisation through
innovative partnerships will create new
models for sustainable growth.
Global infrastructure trends
The global forces shaping the future of
infrastructure
Rebuild New Zealand: infrastructure
What opportunities lie ahead for the sector?
How we can help
PwC has advised on many of New Zealand’s largest infrastructure projects
spanning road and rail, ports, communications and IT, healthcare, housing
and other forms of social infrastructure. We have deep relationships with key
stakeholders including central and local government. We pride ourselves on a
focused partnership approach to our work in the sector, based on principles of
trust, independence and challenging insight, using specialist teams tailored to
specific client needs.
21 I 24th Annual CEO SurveyContacts About the report
PwC surveyed 5,050 CEOs in 100 countries Notes
and territories in January and February
Not all figures add up to 100%, as a result
Annabell Chartres Mark Averill of 2021.
of rounding percentages and exclusion of
+64 21 799 927 +64 21 646 418 ‘neither/nor’ and ‘don’t know’ responses.
Eighty nine New Zealand CEOs contributed to
annabell.l.chartres@pwc.com mark.averill@pwc.com
this year’s findings.
The research was undertaken by PwC
Research, our global centre of excellence
Lara Hillier Geof Nightingale The global figures in this report are based on
for primary research and evidence-based
+64 21 240 8640 +64 21 940 346 a sub-sample of 1,779 CEOs, proportionate
consulting services.
lara.w.hillier@pwc.com geof.d.nightingale@pwc.com to country nominal GDP to ensure that
https://www.pwc.co.uk/pwcresearch
CEOs’ views are representative across all
major regions.
Tracy Taylor Keren Blakey
+64 22 011 6944 +64 21 628 226 Please explore the global survey findings on
tracy.x.taylor@pwc.com keren.j.blakey@pwc.com the PwC Global website.
Karl Dwight
+64 21 396 361
karl.r.dwight@pwc.com
Carl Blanchard
+64 21 744 722
carl.g.blanchard@pwc.com
This content is accurate as at 30 March 2021. This content is for general information purposes only, and should not be used as a substitute for
consultation with our professional advisors. To find an advisor and to see more of our general guidance for businesses, please visit our website at
www.pwc.co.nz
© 2021 PricewaterhouseCoopers New Zealand. All rights reserved. ‘PwC’ and ‘PricewaterhouseCoopers’ refer to the New Zealand member firm,
and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.You can also read
