Pwc Auckland Cities of Opportunity Presentation at Auckland Conversations 2015

8/20/2019 Pwc Auckland Cities of Opportunity Presentation at Auckland Conversations 2015

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Auckland

A City of Opportunity

pwc.co.nz


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PwC

Megatrends and the new normal for cities

1 2 3 4 5

Shift in globaleconomic power

Demographicand social

change

Rapidurbanisation

Climate changeand resource

scarcity

Technological breakthroughs

DemandingCitizen

DemographicChange

BlurringBoundaries

Budgetary Austerity

Competitionfor investment

Pervasiveness of Technology

New normal for cities

Source: ‘Future of Government’, PwC, 2013

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Capital Policy &Management

Sustainable Economy

Enablers

EnvironmentalCapital

A City of the Future, A City of Opportunity

ManagementCapacity

Vision

Programme &Project

Strategic Ambition

Strategic Ambition

Delivery & Achievement

Performance & Results

Key Performance Indicators(KPIs)

Performance &

Risk

Partnerships Property People

Leadership City Brand Social

Intelligence City Finance

SocialCapital

IntellectualCapital

InfrastructureCapital

ICTCapital

Culture &LeisureCapital

Participation

& PoliticalCapital

Sustainable urban management is best achieved through a holistic approach

Prioritisation

Financial

Capital

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New forms of collaboration required between different sectors of society - from ‘Triple’ to ‘Penta-helix’

Knowledge

institutions

Non-profitassociations

(charities, culturalinstitutions, etc)

Enthusiastic

citizens

Private sector

Local &regional

governmentSupporting

Enabling

Open attitudeRenewal

Creation of prototypes

Dialogue

Region

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Value matrix to find the gaps and ‘opportunity space’…

I n t e l l e c t u a l c a p i t a l

S o c i a l c a p i t a l

F i n a n c i a l c a p i t a l

T e c h n i c a l c a p i t a l

C u l t u r e & l e i s u r e

c a p i t a l

D e m o c r a c y &

c i t i z e n c a p i t a l

I n f r a s t r u c t u r e

c a p i t a l

E n v i r o n m e n t a l

c a p i t a l

… …

Public players

(local & centralgovernment)

Private sector ● ●

SOEs ●

Universities ●

Not-for-profit

organisations ●

Enthusiastic

citizens

● ●

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Study conducted since 2007, now in its 6th edition

• 30 capitals of Business, Finance and Culture worldwide

• 59 variables organised in 10 indicator categories

• Quantitative and qualitative look at city life

• A deep investigation into a select group of cities

• Holistic approach to city management

• All seeking lessons and directions on…

PwC’s Cities of Opportunity

How do cities

maintain resilience?

What makes moderncities thrive?

The more well-balanced a city is on social, economic and physical qualities for businesses, residentsand visitors, the better it will fare

Today:• Economic and social strengths reinforce each other today• Mutual self-interest continues to unite the urban world tomorrow

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PwC’s Cities of Opportunity

Tools for a changing world

Economics Quality of life

Intellectual Capital andInnovation

Technology Readiness

City Gateway

Health, Safety & Security

Transportation andInfrastructure

Sustainability and thenatural environment

Demographics andlivability

Economic clout

Ease of doing business

Cost

10 indicator categories reflect a comprehensive urban picture

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59 variables organised in 10 indicator categories

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1. Intellectual Capital and Innovation1. Libraries with public access2. Math/science skills attainment3. Literacy and enrolment4. Percent of population with higher

education5. World university ranking6. Innovation Cities Index7. Intellectual property protection8. Entrepreneurial environment

2. Technology Readiness1. Internet access in schools2. Broadband quality score3. Digital economy score4. Software development and multi-

media design

3. City Gateway 1. Hotel rooms2. International tourists3. Number of international association

meetings4. On time flight departures5. Incoming/Outgoing passenger flow 6. Airport to CBD access7. Top 100 airports

4. Health, Safety & Security 1. Hospitals and health employment2. Health system performance3. End of life care4. Crime5. Political environment

5. Transportation and Infrastructure1. Public transport system2. Mass transit coverage3. Cost of public transport

4. Licensed taxis5. Major construction activity 6. Housing

6. Sustainability and the naturalenvironment1. Natural disaster risk 2. Thermal comfort3. Recycled waste4. Air pollution5. Public park space

7. Demographics and livability 1. Cultural vibrancy 2. Quality of living3. Working age population4. Traffic congestion5. Ease of commute6. Relocation attractiveness

8. Economic Cloud1. Number of Global 500 HQs

2. Financial and business servicesemployment

3. Attracting FDI

4. Productivity

5. Rate of real GDP growth

9. Ease of doing business

1. Ease of starting a business2. Resolving insolvency

3. Employee regulations

4. Ease of entry: Number of countries with visa waiver

5. Foreign embassies or consulates

6. Level of shareholder protection

7. Operational risk climate

8. Workforce management risk

10.Cost

1. Total corporate tax rate

2. Cost of business occupancy

3. Cost of living

4. iPhone index

5. Purchasing power

Tools for a changing world Economics Quality of life


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2014 Global Edition Cities and selection criteria

BeijingBerlinBuenos AiresChicagoDubai

Hong KongIstanbulJakartaJohannesburgKuala Lumpur

LondonLos AngelesMadridMexico City Milan

Moscow MumbaiNairobiNew York Paris

Rio de JaneiroSan FranciscoSão PauloSeoulShanghai

SingaporeStockholmSydney TokyoToronto

Centres of finance,commerce and culture

Mature and emergingmarkets

Broad geographicsampling

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Which cities are included and how do they rank? Global study 2014

San Francisco 26

Los Angeles 19 Chicago 21

Toronto 27

New York 29

Mexico City 9

São Paulo 5 Johannesburg 8

Sydney 22

Singapore 28

Hong Kong 23

Tokyo 18

Seoul 17Beijing 12

Shanghai11

Mumbai3

Dubai 15

Moscow 10

Stockholm 24

Berlin 20

Istanbul 6

Paris 25

Madrid 16

London 30

Milan 13

Buenos Aires 7

Kuala Lumpur 14

HighMediumLow

Rio de Janeiro 4Nairobi 1 Jakarta 2

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Increase economic activity by holistic approach

y = 21.177x + 577.92R² = 0.6494

0

200

400

600

800

1000

1200

0 5 10 15 20 25 30

O v e r a l l C o O

S c o r e

Productivity Score (GDP/employment)

Stockholm

New York

San Francisco

Los Angeles

Chicago

Sydney

ParisToronto

Tokyo

Mumbai

Johannesburg

Beijing Kuala Lumpur

Moscow

Istanbul

Correlation between the sum of all CoO variables and productivity (GDP/employed)

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Auckland ranked 16th globally in 2012 – the city has basic preconditions in place, but needs to turn them into economicsuccesses…

Intellectual Capital andInnovation


City Gateway



Sustainability and the naturalenvironment

Demographics and livability

Economic clout


Cost


Economics

Quality of life

2012 Position

#1 #2 #3 Auckland

Stockholm Toronto Paris #10

Seoul San Francisco New York #15

London Paris Beijing #28

Stockholm Toronto Sydney #10

Sydney Auckland San Francisco #2

Paris Sydney Hong Kong #12

Singapore Seoul Toronto #27

Beijing New York Paris #27

Singapore Hong Kong London #6

Berlin Seoul Kuala Lumpur #16

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Auckland has strengths and its weaknesses were identified as priorities in the Auckland Plan

Strengths

City Gateway


Economic clout

Weaknesses


Sustainability and thenatural environment


Auckland fares well as a‘liveable’ city

Auckland understandsand confirmed these as

plan priorities

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Auckland was confirmed as a ‘livable’ city in 2012 but required strengthening in a number of areas

How are we tracking against the key areas requiring improvement in 2015?

2015 indicators reviewed in 2015



Demographics andlivability

Economic clout

How are these indicators tracking in 2015?

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2015 Technology readiness - Auckland #16

Stockholm

2015

Seoul

2012

OverallTechnology readiness

Amsterdam

2015

Stockholm

2012

Internet accessin school

Seoul

2015

Stockholm

2012

Broadbandquality score

Stockholm

2015

Stockholm

2012

Digital economy scores

London

2015

Tokyo

2012

Software developmentand multi-mediadesign

13th

16th

14th

18th

10th

23rd

8th

13th

9th

28th

2015 data2012 data

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Quality of life


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2015 Demographics & livability - Auckland #13Mutual self-interest continues to unite the urban world tomorrow

Sydney

2015

Paris

2012

OverallDemographic and

livability

London

2015

New York

2012

Cultural vibrancy

Toronto

2015

Toronto

2012

Quality of living

Beijing

2015

Beijing

2012

Working agepopulation

Singapore

2015

Singapore

2012

Trafficcongestion

12th

13th

21st

3rd

30th

8th

14th

3rd

23rd

6th

2015 data2012 data

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2015 Transportation and infrastructure - Auckland #30Grow transport and don’t come to a stand still…

Singapore

2015

Singapore

2012

OverallTransportationand

infrastructure

Toronto

2015

Toronto

2012

Public transportsystem

Paris

2015

Paris

2012

Mass transitcoverage

Jakarta

2015

Mexico

2012

Cost of publictransport

Mexico

city

2015

Kuala

Lumpur

2012

Licensedtaxis

27th

30th

21st

26th

31st

23rd

19th

28th 28th

19th

Dubai

2015

Toronto

2012

Major constructionactivity

27th26th

Auckland

2015

Auckland

2012

Housing

1st1st

2015 data2012 data

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Economics


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2015 Economic clout - Auckland #25Need to improve key components for Economic Development

London

2015

Tokyo

2012

OverallEconomic Clout

Tokyo

2015

Tokyo

2012

Number of Global 500 Headquarters

Milan

2015

Milan

2012

Financial and businessservices employment

Singapore

2015

Shanghai

2012

Attracting FDI

San

Francisco

2015

Abu Dhabi

2012

Productivity

28th

25th

27th

17th

31st

16th

28th

15th

28th

11th

Beijing

2015

Buenos

Aires

2012

Rate of real GDP growth

10th

16th

2015 data2012 data

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Auckland Capturing the opportunity



Economic clout


Economics

Quality of life

Competitive advantages Areas of attention

• Emerging broadband

• Connectivity

• Growing digital economy

• Strengthening software development

• Quality of living

• Cultural vibrancy

• Current and forecast infrastructure

build

• Financial and business employment

• Rate of GDP growth

• Education and school internet access

• Innovation readiness

• Keeping up with the high pace of development

• Ageing population

• Mass transit coverage

• Cost and ease of public transport

• Congestion

• Attracting Foreign Direct Investment

• Attracting global corporate presence

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Demographics and livability


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Implications for Auckland and the council

1. Tell the story of Auckland

2. Sustain ‘livability’

3. Stay on the move

4. Develop city transport

5. Reimagine competitive advantage

6. Increase investment attractiveness

7. Grow density and quality of talent

8. Exploit upper north regional collaboration

9. Lower cost of infrastructure

10. Encourage ‘clustering’ of activities

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Time for action to capture the opportunity

Auckland has a strong competitive position with some of the key preconditions inplace…

But lagging on some of the criticalperformance indicators…

It is time for action to capture theopportunity and capitalise on itscompetitive advantages!

?

??

‘Dreaming’ ‘Cities of Opportunity’

‘Sleeping’ ‘Adventurous’

P o l i c y a n d P l a n n i n g

Execution +-

+

-

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Thank you!

Hazem Galal Senior PartnerCities & Local Government Sector Global Leader

Egon de Haas

Global DirectorGovernment & Public Services

Download at pwc.co.nz

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Get in touch

Craig RicePartner, Strategy LeaderT: +64 9 355 8641E: [email protected]

David Walker DirectorT: +64 9 355 8033E: [email protected]

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Documents

Pwc Auckland Cities of Opportunity Presentation at Auckland Conversations 2015