Wellington loses top innovator, but wins creative city title

Thursday, 2 November 2023

Luke Sinclair, Kendall Bristow and Saskia Thornton of FTN Motion, a motorcycle maker that’s leaving Wellington for Hamilton.

Wellington has again taken the title for the country’s most creative city, but there’s concern some top innovators may be pushed out because of rising commercial rates, lack of industrial space, and its distance from Auckland.

FTN Motion - an electric motorcycle maker and dealer based in the capital - announced this week it would relocate its operations to Hamilton mid-next year after the business was unable to find a new workshop in Wellington.

Founder and co-chief executive Luke Sinclair, in an interview, said FTN Motion wouldn’t have achieved the success it had without Wellington.

But while the city’s people were approachable, helpful, and driven by creativity, and investment had generally been good, the business hadn’t seen the government support it expected. It struggled to find a bigger, fit for purpose workshop after a prolonged search despite Wellington offering great local connectivity.

Many buildings it considered were earthquake-prone, and insurance premiums were bloated. Waikato would be significantly cheaper and its new lease there offered a space twice the size that it’s used in Wellington, and included a large yard for unloading parts.

Wellington was also far from a majority of its customers and suppliers as the company looked to scale its operations to Australia and further afield. “Everything we order and export comes in and out through Auckland and Tauranga, it’s added costs and mileage onto everything [being in Wellington].”

Sinclair said while the capital was hard to make work long term, the company was still gutted to leave. Many of its 15 employees would not be able to relocate their families and would have to find other jobs. “It’s going to be really sad.”

FTN Motion would retain a Wellington presence.

Economist Brad Olsen says Wellington’s creative reputation isn’t close to being threatened.

Scott Sheeran, the former Wellington Central electorate candidate for the National Party, said he felt the move was part of a bigger trend of businesses leaving the capital due to housing and financial challenges. “The city is just not business friendly any more,” he said in an email to The Post.

But not everything was bad. The latest Infometrics Creativity Index, released this week, which measures cities’ creative and artistic industries, put Wellington well ahead nationally.

Wellington’s creative index was 6.9 last year - a rise of 0.9, after three years of declines. Queenstown-Lakes district came in second with a 5.6 score, while Auckland clocked in at 5.4.

The capital had held the mantle since 2000, when the data started being measured.

The report found the capital’s creative sectors bounced back strongly last year despite significant job losses being forecast over the pandemic years. Wellington’s creative sector employment was growing at a rate of 3.7%, with 12,403 people employed in creative industry jobs last year.

The trolls outside Wētā Workshop's gift store in Wellington. A spokesperson says its owners - Richard Taylor and Tania Rodger - are firmly committed to the city.

Infometrics chief executive Brad Olsen said that, over the past year, 440 more creative jobs were created in Wellington. A large number of those were in post-production and film-related work, museum operations, advertising, and architectural services.

Other creative businesses were doubling down on their commitment to Wellington.

A Wētā Workshop spokesperson, when asked if it planned to consider moving offshore, said: “Our owners are dedicated Wellingtonians and, as a result, we are firmly committed to being based here.”

Software firm Hnry earlier this year secured $35 million investment and announced plans to double its capital-based staff to 150.

Catherine Jones, chief executive of Creative HQ, said Wellington boasted a vibrant startup ecosystem, particularly for early stage companies. FTN Motion’s story showed what was possible for businesses based in the capital, she said.

But prominent Wellington tech investor Serge van Dam cautioned that Wellington would be the New Zealand city most impacted by the rise of artificial intelligence. He said the generative AI revolution would impact white collar workers across policy, law, education and accounting.

AI is also widely expected to disrupt creative industries. In the United States, actors have been on strike since July, demanding movement from big studios on issues including the use of AI. This has created issues for New Zealand screen workers, who had struggled to find employment as international productions stalled.