Comments

David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
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David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
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John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
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5/5/11

Moving towards normal but domestic sales low


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The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during April 2011, shows total sales in March 2011 decreased 7% (export sales decreased by 2% with domestic sales decreasing 11%) on March 2010.

The NZMEA survey sample this month covered NZ$582m in annualised sales, with an export content of 49%.

Net confidence rose to -10, up from the -13 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 100.5, up from 97.5 in February, the change index (capacity utilisation, staff levels, orders and inventories) went up to 102 from 101 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 103.25, up on February’s result of 101.25. Anything less than 100 indicates a contraction.

Constraints reported were 70% markets and 30% production capacity.

Staff numbers increased slightly for March, year on year.

“Sales levels have got back to some semblance of normality post the earthquake with export sales in particular recovering. Some disruption has persisted in the domestic market,” says NZMEA Chief Executive John Walley.

“It’s encouraging that the performance index has bounced back so quickly after the disruption in February and this reflects the considerable efforts made by manufacturers to restore production.”

“Production capacity was mentioned as the primary constraint by 30 percent of respondents, indicating that some problems remain with those shifting premises or having part of their building out of use.”

“The exchange rate remains the biggest problem. Exporters selling into European and North American markets see little return with the exchange rate at these elevated levels. Some urgent action is needed.”

“Particularly for those who have gone to extraordinary lengths to keep their businesses running it is frustrating to see the Government sitting idly by while our export competitiveness is threatened. New Zealand cannot improve living standards on the export of commodity products alone; only the successful export of differentiated products can close the wealth gap between New Zealand and other developed nations.”

 

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tags: differentiated products, exchange rate, survey, production capacity

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