Rosebank Business Centre Report

<< back to contents

Other Locations in Auckland Region

The Rosebank area is a traditional location for the manufacturing. Over the past five years many more businesses from various industries have established a presence including retail, printing/copying, motor vehicle, transport and food related businesses. As the report has established the location decisions of businesses vary. According to business needs the reasons for remaining in the Rosebank area are specific to each business, for example co-location of support businesses whilst the reasons for considering to leave are equally specific, such as geographical advantages for distribution.

The question asking respondents what other locations in Auckland would they consider and why was to identify how businesses in the area viewed alternative sites. This helps establish the competitive advantage of the Rosebank area comparative to other business centres in the region. In the first instance it provides the Association with opportunities to develop an effective marketing strategy. In addition it provides Auckland City with a successful approach for other business centres across the city. All responses focused on operating in the Auckland Region. Some representative quotes include:

"This was the best suitable location to be in. CBD would have been our first choice."

"City – due to the roading development and potential markets of commercial opportunity."

"Rodney: Ease of dealing with that local body. Simple to make appointments and these appointments are kept. When requesting visits from local body personnel, very efficient, on time every time."

"Onehunga/Penrose – proximity to transport system. Geographically central for Auckland distribution."

"Albany."

"Manukau, East Tamaki and Penrose."

The map below illustrates the location of the 'mentioned' alternative locations in Auckland the local businesses would consider relocating to. Including Rodney District, Albany on the North Shore, Penrose/Onehunga in the south-east. There were a couple of respondents who did mention that Auckland Airport was also a location option with obvious distribution advantages.

The Rosebank area stands to benefit from the planned Avondale extension of the State Highway Twenty (SH20). This motorway will link the area to Auckland Airport –direct for the first time. This offers exporting firms a reduction in transport costs and time. Due to the length of time involved in the planning and construction phases of the project the planned infrastructure will not completed until at least 2011.

There will be minimal benefits for the Rosebank area from the completion of the Mt Roskill Project at Owairaka – the first stage of State Highway Twenty's extension. These will be improved transport times to the Airport and access to South Auckland for shipment of goods and access for suppliers and customers.

Many respondents raised the issue of staff in relation to their location decisions. This is a common theme throughout the report findings. Some respondent's state that staff living locally either (a) is a key factor for staying in the area or (b) prevents them from leaving.

"No other location would be considered unless forced to shift. Staff live locally."

"Anywhere between CBD and Avondale to suit staff. Anywhere between Mount Wellington and Penrose if staff was not so important to our business. Nowhere, if based on emotion as we are westies and proud."

A key factor for business in the area when considering relocating is the cost associated with firm wide relocations. For some businesses the cost of physically moving location is prohibitive. Significantly this information suggests that moving location would be an option for a select few businesses if it were seen as economically viable. The significance of rising rental/land costs is impacting on some business ability to relocate.

"We would consider any location, however the cost of relocating would probably make it uneconomic to shift if rents stay at about its current level."

There was evidence to suggest that the only significant factor responsible for business relocation was geographical position and proximity to a functioning transport system. The Rosebank peninsular is served poorly by public transport according to many respondents even by current standards. This impacts on access for the available human resource pool that the location provides.

"Staff bus services not suitable after 4:30pm."

"Poor public transport facilities for staff."

The reasons for not relocating are common for many of the businesses surveyed. Reasons given were as follows:

• Businesses still have land available for expansion
• The location has competitive advantages over other business centre locations including more affordable rental/land costs, easy access to transport route on north-western Motorway, locality of good workforce and the natural environment.
• Recent growth is providing a wider variety of business services and co-location of support businesses, such as suppliers.