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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5/6/15

Growth continues in April


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The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during May 2015, shows total sales in April 2015 increased 14.08% (year on year export sales increased by 17.06% with domestic sales increasing 8.10%) on April 2014.

The NZMEA survey sample this month covered NZ$358m in annualised sales, with an export content of 69%.

Net confidence rose to 17, up from -5 in March.

The current performance index (a combination of profitability and cash flow) is at 100.3, up from 94.3 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 98, down from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 105.67, up on the last result of 100.83. Anything over 100 indicates expansion.

Constraints reported were 83% markets, 11% production capacity and 6% skilled staff.

Net 22% of firms reported a modest rise in productivity in April.

Staff numbers for April increased 3.36% year on year.

Tradespersons, supervisors, managers, professional/scientists and operators/labourers all reported a moderate shortage.

“In April, domestic sales continued on their recent trend of growth, experiencing year on year improvements. Export sales also stayed in expansion for the second month. However growth of turnover was at a lower rate than March for both domestic and export sales.” says NZMEA Chief Executive Dieter Adam.

“This month’s survey saw some more positive signs looking forward, as confidence improved for a second month, moving back into positive territory after two months in the negative, along with the forecast index seeing improvement, suggesting manufacturers and exporters are feeling more positive for the future than they have in recent months. Staff numbers also felt another increase in April.

“However risks and pressures remain, the low payout in the dairy sector is starting to feed through, with lower demand effecting manufacturers supplying the industry, and while the fall back of the NZD against AUD has been welcome, it remains at uncomfortable levels for many, along with lower demand in the Australian market. This, along with continued weakness out of Europe combined to push the market constraint even higher than March’s result, going from an already high 68 to 83 – market conditions continue to be by far the most significant reported constraint to growth for manufacturers and exporters.

“It was good to see both the Reserve Bank of New Zealand (RBNZ) and Government take some action to address risks building in the Auckland housing market – this, along with continued low inflation should give the RBNZ more room to bring down the OCR. Bringing our interest rates closer in line with those of our competitors would go a long way in levelling the playing field for our manufacturers and exporters. Calls for cuts to the OCR have also been expressed by others, including Fonterra CEO Theo Spierings.” says Dieter Adam.

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tags: survey, growth, manufacturers, exporters, exchange rate, rbnz, ocr, interest rates, housing, exports, sales

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