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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Manufacturing growth helps pick up the slack

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Gross Domestic Product (GDP) figures released today by Statistics New Zealand showed growth in the manufacturing sector of 2.8% on the previous quarter. The manufacturing sector is showing some strength and helping to pick up some of the economic slack caused by the fall in dairy prices and lower construction activity, says the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive Dieter Adam says, “This is yet another encouraging result, following up the growth seen in the last Economic Survey of Manufacturing. The increase was led by food, beverage and tobacco manufacturing, seeing an increase of 4.7% on the previous quarter. But they are not alone, transport equipment, machinery, and equipment manufacturing grew 3.3%, and petroleum, chemical, polymer and rubber product manufacturing increased 2.7%."

“While New Zealand excels at primary and processed primary production, our other manufacturers still have the potential and ability to lead growth. These other sub-sectors also bring other flow-on benefits, such as innovation, complexity and capability that fuels future growth and skilled employment. With the right support and focus, I have no doubt they can bring even more to our economy.

“There was also a positive indication that investment is increasing, with plant, machinery, and equipment investment rising 6.1%. This increase is in line with comments we have been receiving, with some manufacturers being able to invest in their businesses in the form of productive goods and technology. After a period of tougher times and margin pressure from an overvalued currency making reinvestment challenging, it is great to see this make some ground.

“However, there is some concern that both the recent cut in the OCR by the Reserve Bank of New Zealand, and the increase in the US Federal Reserve rate today did not spur our currency downward further as expected. A resumption of the trend back down towards 60c against the US$ would be beneficial for manufacturers - any development in the opposite direction has a real impact on our manufacturers ability to invest in the future.

“In manufacturing, investment is paramount to staying globally competitive, and the pace of change in technology and customer demands is increasing. There are ways this can be supported and encouraged, such as a policy of accelerated depreciation for productive plant equipment and machinery.” said Dieter. 

tags: manufacturing, exports, growth, investment, currency, exchange rate, gdp, equipment


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