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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3/5/13

Quarterly Survey: Manufacturing takes a hit


Print-friendly 2 comment(s) Posted in: In the media

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during April 2013, shows total sales in March 2013 decreased 13.86% (export sales decreased by 12.65% with domestic sales decreasing 14.85%) on March 2012.

The NZMEA survey sample this month covered NZ$520m in annualised sales, with an export content of 46%.

Net confidence fell to -50, down from the -27 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 92.5, down from 100.5 in February, the change index (capacity utilisation, staff levels, orders and inventories) went up to 99.0 from 98.0 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 97.0, down on February’s result of 100.5. Anything less than 100 indicates a contraction.

Constraints reported were 90% markets and 10% production capacity.

Staff numbers for March increased year on year by 0.91%.

“Despite all the recent talk of economic recovery, we are still seeing manufacturing struggling, with significant decreases in both sales and confidence.” says NZMEA Chief Executive John Walley.

“The high dollar continues to be the biggest problem for exporting manufacturers, directly hitting their state of mind, margins and turnover.”

“It is clear that in the manufacturing export sector, recovery and growth are some way off.”

“On a positive note, employment is holding up and the trend for domestic sales is moving out of contraction.”

“Statistics New Zealand data shows that although total exports are increasing, the simply transformed and elaborately transformed manufacturers have decreased both year on year and since last quarter. We need to focus on these sectors to create a more successful, innovative and diverse economy, rather than build yet further reliance on primary production and processing.”

“The RBNZ has, yet again, acknowledged the New Zealand dollar to be overvalued, and yet again we see no new thinking on how to take action to correct this.”

“It seems to be an easy choice to ignore the dollar and look to property interests.”

“A recent NZ Heavy Engineering Research Association survey indicated that the mind-set with their members is changing from growing business, to finding a sustainable viable business model.”

“For exporters it is boiling down to a choice between close up or move offshore, either way it is bad news for New Zealand jobs.”

 

 

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tags: manufacturing, exporting, survey, confidence, currency, staff, expectations

comments

2 Comment(s)



Steven Howard - 04 May 2013 at 4:49 AM
Where are manufacturing jobs actually going up in the world right now I wonder? The latest US jobs reports show no gains in manufacturing jobs, and I know China is struggling as well.
Kieran Ormandy - 17 May 2013 at 12:49 PM
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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