ASHBURTON… a progressive place for business

While other regional authorities get bogged down in the minutia of local body politics, the Ashburton District Council has earned itself the reputation of a progressive, big picture organisation.

The locals are applauding lifestyle moves such as the expansion of Lake Hood, the recently completed events centre, a proposed new art gallery and museum, and plans for an indoor aquatic centre and sports stadium.

It’s ambitious stuff, designed to meet the needs of a steadily growing population. Ashburton has a strong, dynamic workforce with 60% of its 29,000 residents between the ages of 15 and 64 years. The region is also one of the country’s fastest growing rural districts, with the population growth expected to continue.

Ashburton Business Estate
Such growth predictions are one of the driving forces behind the Ashburton Business Estate, the 85ha industrial park owned by the Ashburton District Council. ABE is located on the northern boundary of Ashburton, with direct access to State Highway 1.

Plans are progressing to move the main rail yards from the town’s centre into the prime greenfields site. Nearby are Christchurch International Airport, Ashburton (Regional) Airport, Timaru (Regional) Airport, Lyttleton Port of Christchurch, and PrimePort Timaru.

The completion of the construction of the 45ha Stage 1 is due in early October and interest is expected to intensify in the business zoned land.

Six sites moving ahead
Six sites are currently either under conditional contract or in negotiation with the development board confident of more success soon. A specialist team at Colliers International in Christchurch of Noel Gilchrist, Gary Seear and Brent Bailey are the exclusive agents and are in talks with several other prospective purchasers locally and nationally.

Among those to already sign is Canterbury Longrun Roofing, a division of the 40 year old Nelson based Freeman Group, already operating in Ashburton. The company has committed to a 1.1ha site, somewhat larger than their immediate requirement because of the affordability of Ashburton’s pricing. This will give them the freedom to further expand when required, a luxury that’s been largely priced out of today’s existing industrial areas.

With titles due late this year, Canterbury Longrun Roofing expects to open their new facility in early 2011.

Mayor Bede O’Malley cites Longrun as an example of provincial companies doing well and looking to grow through the tough economic times. “We’re not denying that the effects haven’t been felt locally but we’re seeing the resilience of the provinces really starting to show.”

Ashburton GDP twice NZ average
For the year ended June 2010, GDP growth in Ashburton district was almost twice the Canterbury and New Zealand average.

Ashburton’s primary industry of agriculture is the focus for much of the region’s businesses, followed by manufacturing. Lamb, wool, deer and beef production, as well as horse breeding and a growing dairy industry, also contribute strongly to the region and country’s economy.

Horticulture is a significant industry with the district accounting for 43% of New Zealand’s arable production and 60% of the country’s pasture seed production. The district features on the global stage, producing 50% of the world’s radish seeds, 35% of clover seeds, 33% of carrot seeds, and a major portion of the world’s bok choi seeds.

Almost 50% of New Zealand’s irrigated land is located in the Ashburton District, and with current innovation, this will increase significantly.

Council involvement to encourage business
Brian Lester, chief executive of ADC, believes the council’s involvement will encourage businesses to Ashburton Business Estate.

“Certainly the council doesn’t have some of the funding issues that property developers have faced over the past 18 months or so. We are providing a quality finished product. At the end of the day it’s about the council being proactive in encouraging economic development in the region.”

Lester says Ashburton is attracting a growing number of innovative business owners who have taken advantage of low land prices and low input costs, and a stable work force, to establish a diverse range of businesses, including engineering, handicrafts, viticulture, print and apparel manufacturing.

“The Ashburton Business Estate is designed to support the continued growth of the region, by making it easier for business owners to take advantage of everything the district has to offer.”

Interest from many companies
Noel Gilchrist, of the Colliers sales team, says interest is coming both from operators within the area wanting to relocate to larger, more convenient premises and from out-of-town businesses lured by the low land costs and robust infrastructure.

“The Ashburton Business Estate offers some of the lowest industrialzoned land prices in the region. The council is taking a pragmatic approach. It will work with companies to tailor a specific package – whatever it takes to get your business up and running.

“We’ll also look at ownership or lease back options.”

The council has also been conscious of creating an environmentally friendly complex for residents. The Ashburton Business Estate has been designed to include significant tree planting and landscaping, including rain gardens and stormwater systems, as well as a cycle and walkways for staff. It will eventually also include a lunch and further central recreation areas for staff, including a café,” Gilchrist says.

Brian Lester: “Our focus is on quality, on sustainability, and on a project that is a success for both business and the community.”

Accelerating success