New Zealand businesses are falling behind in productivity, and slow tech adoption may be the reason why.

That’s according to a new 2025 report by 2degrees, released this month, titled “Productivity Propelled.”

The study surveyed more than 600 Kiwi businesses and found that while 88% see tech as essential to growth, only 37% believe they are using it effectively.

The report highlights a clear link between innovation and output—businesses that regularly adopt new tech tools are up to 68% more productive than those that don’t.

But with cost, time, and fear of change holding many back, the gap continues to grow.

“New Zealand has a strong entrepreneurial spirit,” says 2degrees CEO Mark Callander, “but we’re not making the most of digital tools.”

For Coasties, this has real implications.

Local businesses may be missing opportunities to automate, scale, or streamline their services— especially as customer expectations shift.

From AI-powered bookings to cloud-based inventory systems, smarter tools can boost capacity without adding staff.

The report calls on business leaders, government, and telcos to collaborate on practical solutions to help more businesses embrace innovation and grow sustainably.

For small and medium businesses on the Hibiscus Coast, this could be the nudge needed to explore how digital tools can improve efficiency, free up time, and ultimately support growth.

The full report is available at 2degrees.nz

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