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

 

Seize the moment - Now is the time to invest for growth

Press release

23 August 2013

Seize the moment - Now is the time to invest for growth

Brave business decisions made now could reap major dividends as New Zealand companies and the world economy slowly emerge from the long-term effects of the Global Financial Crisis.

Tim Keenan, Partner and National Director, Privately Held Business, for Grant Thornton New Zealand, said that the Global Financial Crisis naturally selected the strong from the weak, but the time was now right for the smart companies to invest for growth and take the opportunity to snatch market share from competitors.

“Having emerged from three to four years of cost cutting and keeping tight control of expenditure it takes courage to loosen the purse strings and become more aggressive with marketing, hiring staff and upgrading plant and machinery.

“However, the time is now right for companies to get a leap on their competitors with most business indicators starting to head in the right direction. Spurred on by the estimated $40 billion rebuild of Christchurch, housing and infrastructure catch-up spending in Auckland and a New Zealand-wide rural economy that is being buoyed by a worldwide demand for our agricultural products,” he said.

The Australian economic indicators are not strong and New Zealand businesses need to be wary of Australian businesses looking to cross the Tasman and compete in our domestic market for new customers. This is incentive enough for New Zealand businesses to consider smart investment for taking advantage of the growth opportunities that will present themselves in the near future.

It is darkest before the dawn, and that is where the New Zealand economy sits.

“The New Zealand economy expanded by a relatively healthy 3.2% in 2012 and is expected to grow by 2.8% this year and average 3.1% a year from 2014 to 2017. This level of sustained growth will put other pressures on businesses.

“Already there are clear indications that skilled staff are in high demand and getting harder to find. Getting in now and securing quality staff, even if the capacity is not quite there yet, is a smart move for progressive companies looking to grow strongly in the future.

“The strong dollar is not favoured by exporters, but companies looking to buy new machinery or upgrade existing equipment, will find that now is a great time to invest with the New Zealand dollar trading at very strong levels.

“The economic hangover continues to impact larger economies in Europe and United States which helps as overseas demand for machinery and equipment remains tepid and manufacturers abroad are keen to offer sharp prices to keep stock moving,” he said.

Investment in marketing and advertising is traditionally one of the first things to be cut when a company is in a declining market, yet this is often the area that should be left untouched.

“When companies pull back on their advertising and marketing, three things can occur:

1       they leave a void in the marketplace for competitors to snatch vital market share

2       customers lose sight of their brand; and

3       customers lose confidence in their brand.

“The New Zealand economy looks in for a good ride over the next five years as evidenced by confidence levels running at a three-year high. With the likelihood of the re-emergence of the US economy and the gradual rise of parts of Europe, the future for New Zealand companies is bright.

“Firms with the confidence to be the ‘early bird’ and position now for the future will get a march on their competitors and an increased share of their domestic market,” Tim Keenan said.

IBR_Focus_New_Zealand_report.pdf

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: