Media statement                 Thursday, December 15, 2010

Big expansion surge for Waikato, BoP manufacturers

High output levels combined with encouraging forward orders are putting a smile on the faces of manufacturers in the Waikato and Bay of Plenty.

The results are from the November BNZ/Business NZ Performance of Manufacturing Index (PMI).

“Exporting manufacturers in the region are finding demand offshore is more than making up for a lack of sales locally,” said Jack Ninnes, chairman of EMAWaikato.

“The jump in the PMI for November was across all indices and bigger than predicted; it could well be a sign the economy is emerging from the recession.

“The overall unadjusted result for the Waikato/Bay of Plenty was 71.1 placing the region at the forefront of manufacturers elsewhere in the country (a PMI above 50 indicates expansion; below 50, decline).

“The production index of the PMI skyrocketed to over 80 on the index, but it was backed by very robust employment levels (67.3), new orders (71.2), and with stocks of finished goods under control (53.8).

“The high employment expectations will no doubt create a skills shortage as manufacturers look for skilled staff.”

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