Is this NZ’s mini Silicon Valley? How 'easy living' is fuelling business boom in this city

Saturday, 27 December 2025

This story was first published in July 2025.

Once known for students, sports and sheep, this unassuming city is quietly transforming into one of New Zealand’s economic engines.

From technology startups to food exports and logistics superhubs, Palmerston North is punching above its weight.

Centrally located with strong transport links and affordable rents, the city has become an attractive base for some businesses.

With around 120 tech companies in the region Palmerston North is being dubbed New Zealand’s Silicon Valley.

Local tech entrepreneur Aaron Fulton said the city offered a rare combination of connectivity, affordability and quality of life.

“You might as well be in a place you love,” he said.

Fulton, who set up his company WebtoLife about two years ago, said Palmy’s a great place to run a business.

“We've got so many different facilities here that they just don't have in other cities. We don't have a big traffic problem. It is a great place for family.”

“My clients are everywhere so it doesn’t really matter where I am. But when you can work from anywhere, why not choose a place that’s great for your family.”

Originally from Bay of Plenty Fulton is also an executive officer of ManawaTech, a tech industry body aiming to connect more than 120 technology companies in the region.

Right connections and talent

HybrIT NZ owner Kris Turk, 39, said Palmerston North offered the right connections to grow his business.

“There’s a real sense of tech community here,” he said.

“I came here with no professional contacts but after attending a couple of networking events, I found the business people to be incredibly friendly and collaborative.”

Turk, who spent 14 years in the UK before moving back to Palmerston North, said the presence of institutes like Massey and UCOL gave the city a great pool of talent.

“The city is attracting young talent and also working to retain them here.”

He said there were specific conversations about the city becoming New Zealand’s Silicon Valley.

“We’re definitely heading in that direction.”

Logistical efficiency

The city’s appeal isn’t limited to the technology sector.

Christian Smith, COO of Christchurch-based Kā te Rama Switched On Group that opened their new headquarters in Palmerston North last year, said Palmerston North’s central location and deep community connections made it an ideal hub.

“Palmerston North is well-positioned to become a national leader in inclusive, community-driven business,” he said.

“The city’s centrality has significantly improved our logistical efficiency, enabling us to better serve the wider Manawatū region.”

Smith said the city also offered access to a skilled and diverse workforce.

“Its infrastructure, talent pool and collaborative spirit create a strong foundation for innovation in housing, sustainability and social enterprise.”

The company builds and maintains homes including for Kāinga Ora.

Resilience and connectivity

Massey University’s senior lecturer Dr Wayne Macpherson, who’s studying local business scene, said the city’s resilience, accessibility and lifestyle made it ideal for the business.

“What makes Palmerston North stand out is its economic diversity,” he said.

'You’ve got thriving industries in farming, food production, tech, logistics, education, and defence. It means we’re not overly reliant on one sector.

“We are not food-only or government-only or education-only economy and that’s why we don’t have the ups and downs of the economic metrics

The regional resilience’s at the heart of Palmy’s boom, he said.

“The city doesn’t suffer from the major climate and infrastructure disruptions seen in other parts of the country.

'We don’t get the severe floods of Tasman or the closures Auckland experiences due to weather. We’re in a kind of weather shadow. Roads stay open, the airport runs year-round and we don’t face the natural disaster risks of Christchurch or Wellington.'

Macpherson said the new logistics hub near the airport and the inland railway port in Longburn added a significant advantage for businesses.

'We are a transportation hub.

“It’s a small city in terms of scale, but it has excellent road connectivity. We’re close to Taranaki, Hawke’s Bay and Wellington, with direct flights to Auckland and Christchurch. For businesses that kind of access is gold.”

Lifestyle

He said “easy living” was one of the city’s biggest advantages.

'With better connectivity, digital infrastructure and lower overheads, companies are realising they can operate more efficiently from here while offering their staff better lifestyle options.'

He said the presence of Massey University and other research institutions also played a crucial role.

'We’ve got state-of-the-art facilities like FoodHQ and the Riddet Institute helping businesses align their products with science-backed testing. That research capability gives us an edge.'

However, a key challenge would be to sustain the infrastructure growth, he said.

“We will need to keep investing in road infrastructure and improving mobility.”

Palmerston North City Council’s strategic planning general manager David Murphy said initiatives like Te Utanganui, a central New Zealand’s distribution hub, further positioned the region as a vital engine for national productivity.

“Through the ongoing expansion of Te Utanganui, Palmerston North is stepping confidently into its role as the logistics and distribution centre of central New Zealand.

“With over $8 billion in public and private investment either underway or committed across the region, we’re seeing real momentum.

“Businesses like Woolworths, Foodstuffs, Hiringa Energy and ADA NZ are choosing to establish themselves here because they see the potential of being connected to an integrated, future-ready freight network that offers road, rail and air in one location.”

He said the council recently reduced development contributions for new commercial projects lowering the barrier to entry for investors.

“The level of investment we’re seeing reflects real confidence not only in Palmerston North but in the region’s [Manawatū’s] ability to deliver.”