Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Businesses Face "Subdued" Cost Increases

News Release. For immediate release.


The Main Report Says Businesses Face "Subdued" Cost Increases

While we live in a low inflation world, many costs for business are still on the up, as this year's release of The Main Report Business Alert's Business Costs 2013 report shows. (report attached)

The annual publication looks at what businesses should expect as far as costs go for the coming year.

The Report says this year businesses can expect increases in costs in 9 out of the 23 categories the report looks at. Costs in 11 categories will remain roughly the same, while a mere 3 will be heading down.

Research analyst for The Main Report Group, Tony Doe, who compiles the report, says "at least this year many of the costs faced by businesses look like staying at around the same levels as they were last year."

"But the usual culprits are helping to drive costs higher - electricity, postage, insurance, shipping local body rates and wages. The cost increases may be more subdued, but they will still impact on business planning and prices."

Some highlights:

• Wages: 2012 saw unemployment stay stubbornly high, with wages subdued as a result. Unemployment is likely to stay around the 6%+ level all this year. Skill shortages will emerge in certain areas, particularly IT, Engineering and construction. Public sector wages will continue to underperform. Expect private sector pay to stay well above the state sector, as Govt austerity continues.

• Shipping: The international shipping lines are calling the shots and costs have increased significantly over 2012, while services were cut. Expect more cost increases and reductions in services this year.

• Electricity: Keep your eyes out for a good deal, and be prepared to negotiate if you are a bulk user, or shift supplier if you don't have high usage muscle. But electricity prices will rise as generators take stock of lower demand and recovering their investment in more secure generation and infrastructure.

ENDS

The_Main_Report_Business_Costs_2013.pdf

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news