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New Zealand’s manufacturing sector continues to meander along in a tight band as we head towards the end of 2012, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for November was 48.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.5 points down from October and means the index has only ranged by 2.8 points over the last six months. Over the last quarter, the PMI has averaged 49.2, and the year to date at 51.0. BusinessNZ’s executive director for manufacturing Catherine Beard said that the November result continues the general pattern seen both here and offshore for the manufacturing sector. “The last six months have seen little to write home about in terms of New Zealand manufacturing. Sluggish production and new orders has meant the overall result has had little chance to show stronger activity levels, while employment in the sector remains in contraction. However, we are no different from most other countries at present, as the JPMorgan Global PMI remains in decline, along with our closest economic neighbours across the Tasman fairing worse than us with overall activity down to 43.6. BNZ economist Doug Steel said there were still many factors influencing manufacturing – some positive and some negative.  “While the overall results have been relatively stable of late, there continues to be considerable variation in the details. The accumulating evidence of improvement in construction activity gives some cautious optimism for 2013, amid some obvious strong headwinds such as the strong NZ dollar and patchy international demand.”  Two of the five seasonally adjusted main diffusion indices were in expansion in November. However, the key indices of production (49.3) and new orders (50.0) showed minor contraction and no change respectively. […]

The winners of the Sustainable 60 awards are showing the way for all New Zealand companies, says Penny Nelson, Executive Director of the Sustainable Business Council (SBC).  “The range of innovation was enormous, from Powersmart Solar that has supported Tokelau to become 100% solar powered, to Aohanga Incorporated – a sheep, beef and forestry agribusiness that has a 100-year plan and is governed with its grandchildren in mind.  Ms Nelson said it was inspiring to see the SBC member companies doing so well, including: Meridian Energy – Winner of the Environment category. Meridian commented that “their approach to environmental management supports a license to operate in some of New Zealand’s most treasured landscapes.” Westpac NZ – Large Business winner. Westpac was acknowledged for reducing environmental impacts and providing products to assist clients to move to a low carbon economy and being an active member of the community. Westpac said “sustainability isn’t discretionary even in tough times.” Landcare Research – Runner up in the large business category. Judges commented that sustainability is so embedded in Landcare Research that if you took out the Board and the management team it would keep going. “It is companies that can lead the way in sustainable business practice. Congratulations to all those who are walking the talk and providing a positive example to us all.”  

The award of 10 new exploration permits is a step towards better development of New Zealand’s petroleum resource, says BusinessNZ. Chief Executive Phil O’Reilly says New Zealand’s oil and gas resources have the potential to create significant economic growth and moves to responsibly develop them are in the national interest. He said the block offer approach was a useful development.  “Changing to block offers allows competitive bids, helping us get a better deal from exploration companies both in terms of engagement with communities and revenue received.  “The distribution of permits in different regions is positive for the communities concerned and the overall revenue will be a welcome addition to the economy. “Unlocking our petroleum resources requires leadership, and the Government is to be congratulated for advancing this important initiative.”        

The Sustainable Business Council says today’s Building Natural Resources report is a critical part of the Government’s Business Growth Agenda. Sustainable Business Council Executive Director Penny Nelson says the vast number of businesses leveraging off New Zealand’s natural resource base makes it imperative that all business becomes greener, rather than a select few. “The quest for a more sustainable economy comes down to decisions about resource use made every day by businesses all over New Zealand. “Businesses that are members of the Sustainable Business Council are keen to work in partnership with communities and local and central government on initiatives identified in the Building Natural Resources report. “Developing indicators to measure our progress in greening economic growth, supporting the growth in capability of individual businesses, and scaling up resource efficiency in business are among the many avenues to greener growth.  “Getting a large scale increase in export growth while steadily improving the quality of our environment is the goal ahead of us.  “That goal is hampered by the often polarised debate around the use of natural resources. Better dialogue among businesses and communities leading to decisive, responsible development of our resources will help bring the goal to reality,” Ms Nelson said.    

BusinessNZ has welcomed the latest report for the Business Growth Agenda, Building Natural Resources.  “The Government’s vision of improving the quality of our natural resource base while sustaining growth in key sectors is both challenging and appropriate,” says BusinessNZ Chief Executive Phil O’Reilly.  “Our land, freshwater, farms, forests, minerals, marine resources and energy sources are the springboard for much of New Zealand’s wealth and will be the basis for a key objective of the Business Growth Agenda – growing exports to 40 percent of our GDP by 2025. “This will require buy-in from all sectors of New Zealand as we take a sustainable approach to resource development. It is an area where partnership is important – business, Maori business, communities, central and local government all have a role to play separately and in partnerships. “Business supports the approach of greening the whole economy, not just particular sectors. This means every business in New Zealand, small or large, can play a part. “BusinessNZ is ready to partner with others to urgently progress a number of projects to help unlock our natural resource wealth.” Mr O’Reilly said key projects included: • Developing indicators to measure progress on greening economic growth • Partnership projects with Maori business relating to natural resources • Support work alongside the ETS to reduce New Zealand emissions. • Integrating different capacity building programmes for business “Innovative and sustainable use of natural resources should be the shared focus of business of all kinds, central and local government and communities as we seek to grow our exports and economy.”      

Telecom’s flat-rate data roaming prices from Friday next week have brought a cheer of approval from business, particularly exporters. “Gone are the days when the shock of an enormous phone bill greeted the business traveller’s return from an otherwise successful sales trip abroad,” said the chief executive of the Employers and Manufacturers Association, Kim Campbell (left). “This is a strong, positive move from Telecom,” he said. “Our long held view is that roaming charges required an overhaul, so it most gratifying to see Telecom announce the $6 per diem cap to apply in Australia, and the $10 cap apply in another eight of our major trading partners including the US and China.” “It will ensure our business travellers can more freely use their usual phone numbers when overseas, and for roaming charges to become far more a controllable cost. “It will also ensure roaming charges become a competitive factor between mobile telco providers, less a matter of speculation and unpredictability.”  

According to IDC international head Christopher Holmes Asia-Pacific manufacturers will look toward new technology, new markets, and lower cost operations in order to keep their head above water in 2013, according to research firm IDC. In its latest manufacturing insights market report IDC said the next 12 months would be difficult for APAC manufacturers, and companies would need to make changes to stay competitive. Holmes said the shift toward setting up in different parts of the world with low cost centres would be central to many strategies. “From a technology perspective, the shift to supporting multiple plants/operations in different parts of the world is going to require the organisation to think about how they make decisions, and what information they need to make those decisions,” he said. “Getting the information from different parts of the world in a format that will allow for fast, effective decision making will be key for 2013.” Holmes said business analytics would be the “new technology of choice” in 2013, with “mobility, cloud, and social business” all attracting more focus. Source: Manufacturers Monthly

New Zealand businesses are not properly managing their supply-side risks, jeopardising billions of dollars in revenue and tens of thousands of jobs, according to a report from the Chartered Institute of Purchasing and Supply, Australasia and accounting firm Grant Thornton New Zealand Ltd. The research, entitled ‘Procurement Risks in New Zealand’, is the first of its kind ever undertaken in this country and looks to benchmark the level of awareness and action related to the assessment, mitigation and management of procurement risks. The survey included about 200 organisations – mostly large corporations across New Zealand. About 75% of the companies in the survey each boast more than 500 employees and over $50 million in revenue, and combined, with more than $7 billion in revenue and 70,000 employees, represent a sizeable sector of the economy. Ross Darrah, Grant Thornton New Zealand Director, Business Transformation,(pictured) said that professional procurement in New Zealand faces specific and rare challenges, both in negating the impact of disruptions on the supply line, and in educating companies of the importance of investing in training of people in this area of their business. “Simply dealing with requirements at the tip of the global supply chain presents challenges but persuading international suppliers to ‘bother’ to supply a first-world market – that often requires only low-volumes – is a challenge in itself. “This issue of supply-side ‘risk’ is a real one for the country. Many of our businesses are reliant on a robust supply line and the consequences of any disruption can be far-reaching.” Numerous recent events, both globally and in New Zealand, have impacted on the supply-side supporting the country. “Two thirds of the organisations surveyed were impacted to a moderate extent by at least one of the recent events andabout a third experienced a high impact from at […]

The Trans Pacific Partnership is of seminal importance for developing job opportunities in New Zealand, says Kim Campbell, chief executive of the Employers & Manufacturers Association. But alongside our ongoing struggle to win access for our agricultural products we need a completely separate work stream dealing with intellectual property, Mr Campbell said. “It is evident that in terms of the TPP, intellectual property is a complicated rat’s nest full of ambiguity and vested interests,” he said.  “Well-resourced groups have the capacity to subvert the TPP process if we are not most careful to ensure it is robust and enduring.  “Hence the need for caution and precision over the agreement’s terms and conditions. “New Zealand business will be paying close attention to the details of this part of the agreement because tomorrow’s globally integrated business world will be driven by intellectual property. “And we are 100 per cent committed to New Zealand negotiating a high quality TPP agreement for the job opportunities and economic growth prospects it can undoubtedly deliver.”