Datacom managing director Justin Gray said the results reflected the challenging environment businesses had been navigating over a prolonged period. Photo: Yiting Lin / RNZ
Uncertainty and ongoing market volatility continues to cast a shadow over 2025's business outlook.
Datacom's latest Business Outlook Survey said economic uncertainty was the primary business concern for more than three quarters (77 percent) of a survey of more than 200 business leaders heading into the new year, compared with 13 percent a year ago.
Datacom managing director Justin Gray said the results reflected the challenging environment businesses had been navigating over a prolonged period.
While there were opportunities to drive growth with generative AI and other technology-based opportunities, there was ongoing concern about the a lack of skilled workers (15 percent) and budget constraints (34 percent).
"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 percent of respondents anticipate greater investment in technology in the upcoming year compared to the previous year."
However staff retention and recruitment had dropped to fifth in the rank of priorities compared with third last year, with just nine percent of respondents listing it as a top priority for their organisation.
"I think that's also a sign of probably a pretty low growth environment and expect if and when we get back to growth, I think staff and skills will rise up the ranks again as a challenge for business," Gray said.
There was also a focus on workplace productivity (29 percent) and growth (28 percent), which ranked as the top business priorities for the year ahead.
Businesses were committed to making cybersecurity an increased focus, with more than a third (35 percent) experiencing a significant cyber-attack within the last 12 months and more than half (53 percent) of larger firms reporting an attack.
Gray said last year's survey of 200 business leaders indicated they had high confidence in the incoming government, with 71 percent of respondents stating they believed there would be greater opportunity for businesses to thrive under the new government.
However the latest survey indicated a level of disappointment with about two-thirds (65 percent) of respondents giving government a thumbs up, while 22 percent said "no".
"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.
Companies with fewer than 200 employees were less confident in the government's performance so far, with just under half (49 percent) ranking it as having done a good job and about a third (34 percent) saying "no".
Businesses wanted the government to focus more on the economy, as well as supporting export opportunities.
"Exporting is no longer a peripheral strategy for New Zealand businesses - it's becoming a core pathway to long-term success," Gray said.
"This reflects a growing recognition that global engagement isn't just good for businesses; it's critical for simulating the New Zealand economy."
Improving public services was the second-ranked priority in the previous survey, with climate change in third, but those had dropped to third and sixth respectively.
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