As 2025 nears, businesses are increasingly worried about the economic climate, with uncertainty and market volatility continuing to dominate their outlook. According to Datacom’s latest Business Outlook Survey, more than three-quarters (77%) of the 200+ business leaders surveyed cited economic uncertainty as their primary concern—an alarming increase from just 13% at the same time last year.
Justin Gray, managing director at Datacom, explained that the results reflect the tough business environment that companies have been navigating over the past several months. Despite the challenges, leaders are finding opportunities for growth through advancements in technology, particularly generative AI. However, concerns persist around skill shortages (15%) and budget limitations (34%).
Gray emphasized the growing importance of technology in business strategies, noting that artificial intelligence (AI) and automation are seen as key areas for expansion. “68% of respondents anticipate greater investment in technology in the coming year, compared to the previous year,” he added.
While staff retention and recruitment had been a top priority last year, it has now slipped to fifth place in the ranking, with only 9% of business leaders considering it a key focus. Gray suggests that this may reflect a stagnation in growth, but predicts that as growth resumes, staffing challenges will resurface as a critical issue for businesses.
Workplace productivity (29%) and growth (28%) are now the highest priorities for the year ahead, according to the survey. Additionally, cybersecurity has become a growing concern, with 35% of businesses reporting a significant cyber-attack in the past year. Larger companies were particularly affected, with 53% reporting similar incidents.
Gray also highlighted the shift in attitudes toward the government, noting a decrease in business leaders’ confidence compared to last year. While 71% of respondents in the previous survey expressed optimism for the new government, only 65% felt the same this year, with 22% expressing disappointment. Businesses with fewer than 200 employees were especially critical, with just 49% rating the government’s performance positively.
One area where businesses are seeking more support from the government is in fostering export opportunities. “Exporting is no longer a peripheral strategy for New Zealand businesses—it’s becoming a core pathway to long-term success,” Gray stated. He underscored that global engagement is not only beneficial for businesses, but also essential for stimulating the broader New Zealand economy.
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