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


Better profitability and orders but barriers remain

Exporters - better profitability and orders but barriers remain

Catherine Beard, Executive Director for ExportNZ says the annual ExportNZ survey shows exporters are feeling confident, expecting increasing profitability and rising orders in the next twelve months, but nearly half the respondents are facing tariff and non-tariff trade barriers.

“Two key differences in this year’s survey from 2014 – are China and ASEAN moving up the ranks of countries that respondents are exporting to, and an increase in the use of on-line selling to open up new market opportunities (52.2% said yes to this question compared to only 37.9% in 2014).

“In the next 12 months the majority (70%) of respondents said they expected business profitability to improve, 22% stay the same and 6.8% to deteriorate. Most (54.6%) expected their business to employ more people with 38.5% employing the same and only a small number reducing staff (6.8%).

“While the majority (68.8%) are able to access enough skilled staff to grow their business, it is concerning that 31% said this is a constraint,” Catherine Beard said.

In the next year most expected their orders across all markets to increase, either slowly (48.5%) or substantially (31.6%). The strongest average sales growth was expected in North America (20%).

The top export destinations for the respondents have changed slightly from 2014 with China and ASEAN moving up the rankings. Most exporters are focusing on Australia, China (incl. HK) Europe (incl. UK), ASEAN and North America. The ASEAN market was most mentioned as the next new market to enter followed by China.

Top obstacles to growth were price competitiveness of products, which has moved ahead of exchange rate levels as an issue, followed by funding for developing overseas markets and overseas regulatory requirements.

Regulatory and non-tariff barriers are a problem for nearly half the respondents (41.8%) and ExportNZ will be raising these issues with Government Officials.

“In terms of Government assistance, those who get help from NZTE (51.2%) rate it highly. But around 40% are not getting any assistance and would like market development help from NZTE. This was the most popular selection, followed by R & D assistance and attending trade shows.

“The exporters that are facing trade barriers cite a number of difficulties. China is mentioned often and continues to be a challenging market to do business in. Exporters in the food and beverage category need more help from Ministry of Primary Industries to navigate market access issues as this is holding back trade, particularly in the processed food category.

“ExportNZ will collate the feedback on tariff and non-tariff barriers and work with officials to help reduce them.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>