NZ Companies Moving Offshore Could Be Missing Something There is no question it is bad news to see such job losses, and it has me wonder was it completely necessary? Are there opportunities that businesses in New Zealand fail to exploit in the way they manage their property lease portfolios? While the media and New Zealand public are focusing on the shock of job losses from a raft of companies moving overseas, we’re forgetting one of the key areas where costs can be saved… property. There is no question it is bad news to see such job losses, and it has me wonder was it completely necessary? Are there opportunities that businesses in New Zealand fail to exploit in the way they manage their property lease portfolios? We all know the key thing in business today is thinking smarter. With property the number two cost on balance sheets, do companies really investigate the full potential savings in thinking smart about their property leases and operating costs? Labour costs are not all about the wages people are paid. The rule of thumb is to multiply a person’s income by two and a half to get the true cost of employing them. I believe that cost can be significantly reduced if we examine the property component cost of labour. More and more people are working from home. Are we thinking smart about how much space we need? Are there savings to be made here? Are there opportunities to negotiate more attractive lease terms and conditions? I believe not enough attention is paid to ways to cut property costs. The cost of labour, having efficient plant and technology are always big ticket items. But potential savings in property costs is frequently overlooked or poorly analysed. Moving operations to third world countries is always going to be attractive when they have low compliance costs around things such as health & safety and building standards. It’s time to get wise about our property costs, and maybe that can impact on the decisions of companies to go offshore. In a period when business confidence levels are at a record low, companies are looking for ways to improve the bottom line. I believe that most companies have heaps of overlooked opportunities to achieve a better outcome on leased property. Even companies not thinking about relocating their operations offshore will benefit financially from a more thoughtful, strategic approach to the property line on their balance sheet.