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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22/7/11

Government procurement policy must consider total economic cost


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The Government must consider the total cost to the economy, rather than just the upfront cost, when determining where to source public work say the New Zealand Manufacturers and Exporters Association (NZMEA). Public money can be spent carefully and not just chase the lowest price – lifetime costs, maintenance, repair, protection of capacity and capability development are all criteria worthy of consideration in what are ultimately Crown decisions.

NZMEA Chief Executive John Walley says, “I am mindful of the first Obama stimulus package that was specific on a 25 percent benefit before the work was lost to the United States. A similar hard line is required in New Zealand to emphasise local preference.”

“With the dollar at a highly overvalued level currently we are seeing some Government contracts move offshore. When the dollar drops off again New Zealand firms will once again be competitive, but if that capability is lost in the meantime we won’t see it return.”

“It is short sighted and damaging to move contracts offshore on the basis of short-term gains. A longer term policy that considers the impact of transient issues like exchange rates, the stability of capability in the economy, the maintenance of capacity in economy and the whole of life cost is needed.”
 



tags: government procurement, lifetime cost, exchange rate

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