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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RBNZ make the right call

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Manufacturers and exporters welcome the decision by the Reserve Bank of New Zealand (RBNZ) this morning to cut the OCR to 2.25%, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive Dieter Adam says, “We are pleased to see the RBNZ reduce the OCR today – the effect on the currency will help maintain the relative competitiveness of our manufacturers and exporters in offshore markets and those competing with imports domestically. 

“The surprise of the decision helped to move the currency down further than we have seen in other recent OCR cuts – the currency has dropped by over a cent already on a trade weighted basis. We are hopeful this drop will be sustained, however, even if it does our dollar will still be well above what the RBNZ itself would consider appropriate.

“We also support the RBNZ’s comments that further easing may be necessary, and we would encourage them to follow through on this in the next OCR decision if conditions allow, while keeping their careful eye on any building imbalances or financial stability risks.

“The currency has remained stubbornly high, despite continued downward pressure on commodity prices. The RBNZ noted in their release that the exchange rate is over 4% higher than their December projections – 4% may sound small, but it is significant in terms of its effect on manufacturers margins and ability to be globally competitive - this drives manufacturers ability to re-invest in their businesses for future growth and innovation

“Manufacturers welcome any changes that will help move the currency on its downward re-balancing trend towards a level playing field for them in export markets. On that note, we are concerned about reports that there is penned-up demand from off-shore investors to get back into the Auckland property market. The last thing we need is the RBNZ having its hands tied by yet more pressure on the Auckland housing market.” says Dieter. 

tags: currency, exchange rate, exports, manufacturing, domestic, rbnz, ocr, interest rate


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