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

 


Castalia Manufacturing Report Welcome

Castalia Manufacturing Report Welcome - 27 February

The recent report “New Zealand Manufacturing Sector: Its Dynamics and Competitiveness” completed by Castalia has some good analysis and reiterates the importance of manufacturing to the New Zealand economy, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “We always welcome any new analysis on the importance of the manufacturing sector in New Zealand. New Zealanders need to understand how truly vital manufacturing is to the future of everyone, not a declining, optional extra in the economy.”

“The report did miss a significant body of information from the Manufacturing Inquiry, that report had many comments from a wide range of manufacturers.”

“The report skates round the elephant in the room for all exporters and import competing companies, the exchange rate. The exchange rate problem is mentioned in passing but gets scant attention and no solutions. Quite rightly the critical importance of investment is underlined, but investment requires a margin that an overvalued exchange rate just destroys.”

“Resource based manufacturing (5 of the 15 in the sample) is bound to New Zealand because the raw materials are here and they are not likely to leave. The value-add manufacturers (10 in the sample) are more mobile, and are largely here because the ownership is here (6 of the 10 value-add manufacturers). They might leave one day for logical reasons of policy, cost or market. New Zealand can’t do much about markets, so we need to work hard on good policy and lower costs.”

“It was good to see that 5 out of the 10 value add manufacturers in the sample had received their share of the $200m funding from Callaghan Innovation. It is not surprising that these firms do not speak to harshly of the current environment.”

“Sample bias plays a big part in this sort of work, looking at the “stars” takes attention from those at the threshold of failure who should really be the focus of the discussion if declining trends are to be reversed.”

“Those who are doing well in the current environment are always going to be less critical and more supportive of the status quo; samples need to be wider to ensure a real understanding of the sector.”

© 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