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

 

Manufacturing: Look Behind The Numbers


Look behind the numbers

The latest Canterbury Manufacturers' Association (CMA) Survey of Business Conditions completed during December 2007, shows total sales in November 2007 increased 9.8% (export sales increased by 14.5% with domestic sales increasing 6.3%) on November 2006.

The CMA survey sample this month covered NZ$425m in annualised sales, with an export content of 44%.

Net confidence decreased to -8, down from the zero result reported last month.

The current performance index (a combination of profitability and cash flow) is at 97, on par with the previous month, the change index (capacity utilisation, staff levels, orders and inventories) is also steady at 104 on the previous month's result, and the forecast index (investment, sales, profitability and staff) is at 106, up on the previous month's result of 103. Anything less than 100 indicates a contraction.

Constraints reported 8% production, 17% staff and markets 75%.

Staff numbers for September increased by just over 9.6%.

"You could look at these numbers at face value and say that life is a breeze for manufacturers, except for confidence and performance, and perhaps we should only play up the positive?. This survey is positive in many respects as both export and domestic turnover increased in November, as did staff numbers, and a strong end of year is normally the case for the manufacturing sector. However, a different picture emerges when you mix where we are now, where we are going and where we could be going, if the right support mechanisms were there", says Chief Executive John Walley.

"While turnover has increased, performance (a combination of profitability and cashflow) continues to show a contraction and only a minor improvement on the trend for the year. Whilst forecasts anticipate an expansion, they are not solid enough to have a positive impact on confidence".

"Respondents say that the pressures on the sector are still there. Increased cost of holidays and KiwiSaver has been identified this month, along with rising volume of imports and the ongoing strength of the dollar."

"There are some positive signs reflected in this survey; there are some opportunities that manufacturers are taking advantage of, such as investing in new equipment, developing new products and investment in overseas markets. However, if policy settings do not change, then we can anticipate more of what happened this year, in 2008; more manufacturing activity, skills and capability being lost offshore, simplifying exports and a growing current account deficit that will result in comparative living standards being eroded".

"The warning signs are there; when we only play to the positive, we do so at our peril."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>


OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>