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

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: