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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news