doug

  New Zealand businesses need to lift their game if they want to succeed in Korea according to New Zealand Trade and Enterprise research into the perceptions of New Zealand in South Korea. “There is a pool of goodwill and trust for New Zealand in Korea,” says NZTE’s Trade Commissioner based in Seoul, Graeme Solloway. “But the latest research indicates that while New Zealand is seen as being warm and trustworthy, there is also a perception that New Zealand has stagnated in the last 10 years, and that we don’t actively seek or chase business opportunities here.” “Like many places, Korea is a complex market, with its own unique business culture, and New Zealand businesses need to take the time to understand and appreciate the way that relationships and the local business culture work here, and operate a way that resonates with Korean customers,” Mr Solloway says. The  research builds on an initial survey completed in 2008 which found that New Zealanders were perceived as being friendly but not business minded. “Overall there has been little change in the Korean perceptions of New Zealand over the past two years,” Mr Solloway says. “There is a growing perception that New Zealand businesses are ill prepared for Korea and are not stepping up to Korean business standards. If businesses can do that, there are huge opportunities here for the waiting.” The research indicates that: There is a pool of goodwill and trust for New Zealand in Korea and Koreans enjoy working and playing with New Zealanders. New Zealand businesses are seen as slow and unresponsive and Korean businesses are losing patience and have easier business options to choose from. Koreans generally have positive perceptions of New Zealand food and beverage however specific product knowledge tends to be restricted to unprocessed foods such […]

After today’s CPI figure we expect the Reserve Bank to cut the Official Cash Rate on October 25th in an effort to lower the exchange rate, the Employers and Manufacturers Association says. “The CPI figure indicates inflation has moved below the agreed target of 1-3 per cent required of the Reserve Bank leaving ample room for a cut to the OCR,” said Kim Campbell, EMA’s chief executive (left). “We need the Reserve Bank to do what it can to give exporters a break and stimulate the economy,” he said. “This is the second consecutive quarter showing annual inflation running at or below 1 per cent and the trend is still downward. “In fact there was deflation in the tradables sector over the past year to September of 1.2 per cent. “With the economy flat as a plate and with some businesses in a perilous condition, our exporters need a cut to the OCR to help spur investment but mainly to retain the cross rate advantage we have had for exports going to Australia. “Other countries around the world are cutting their interest rates where they can while those at or very close to zero are printing money through quantitative easing in an effort to support their economies. “A cut to the OCR on October 25th, the date when the Reserve Bank is due to report again, would underpin business confidence and show monetary policy works.”  

Despite a slight improvement from the previous month, New Zealand’s manufacturing sector remained stubbornly in contraction during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 48.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). While this was 0.8 points up from August, it represented the fourth consecutive month of no expansion in the sector. Over the last quarter, the PMI has averaged 48.3. BusinessNZ’s executive director for manufacturing Catherine Beard said that although the September result did not sink further than August, details behind the main result need to be outlined. “Although the employment sub index bounced back from August, the continued drop in new orders to its lowest point in more than three years may have an adverse effect on production numbers in the months ahead. When examining the comments put forward by manufacturers, the low number for new orders does not come as a great surprise given terms such as ‘lack of demand/orders’ and ‘slowness in orders’ were prevalent.” BNZ senior economist Craig Ebert said the September PMI is more likely to be temporary turbulence than tragedy. “While the data are worryingly weak-looking, they are about current conditions more than the way ahead. Talk that the industry is in crisis is overblown. Manufacturers’ expectations for output over the next three months remain positive.” Four of the five seasonally adjusted main diffusion indices were in contraction in September. While finished stocks (50.6) bucked the trend with its first level of expansion since May 2012, new orders (45.9) fell a further 2.0 points from August and experienced its lowest value since May 2009. The remaining indices improved somewhat on August. Employment (49.2) increased 3.7 points, while both production (49.9) […]

Working has to be a lot better than being on the dole. Right? Motivation, future direction and ‘career’ all come into the picture for our young people’s tomorrow. And while working they are entitled to be paid a reasonable wage for their efforts. However, the announcement this morning by Kate Wilkinson, Labour Minister that 16-19 year olds will get $10 an hour is a huge joke for the obvious reasons: throwing our youth onto a cheap labour pool and secondly providing them with greater incentives to move to Australia. It is very hard to figure out who in this government has a grip on job creation, incentives for job creation and the future of manufacturing in this country. On Friday there is a gathering, called for by the EPMU to talk about the urgency facing the jobs market. Why has this taken so long to organise? Where are the jobs going to come from? There are large numbers of young people unemployed – just look to the Waikato if you want to ask about the ‘lost generation’. They need jobs and a living wage not a special government works approach to their future. -Doug Green  

Experts say the possibility of expansion at Kyocera Industrial Ceramics Corp. reflects a new paradigm taking place in global manufacturing that starts with shrinking cost differences between production in China and the U.S. That shift, as well as rising global consumer spending, are expected to increase the demand for components made by Kyocera Industrial Ceramics, which supplies unnamed technology companies, President David Williams said. He stressed the parts being made are for manufacturing equipment, not household items. “But you would be shocked at the number of ceramic components in your house,” Williams said. The parts tolerate much higher temperatures than those tolerated by metal components. “Ceramic is a miracle material,” said Pat Cotter, the company’s Vancouver-based vice president of administration. “It’s incredibly strong and can do a wide range of things in various high-tech applications.” Analysts expect more U.S. plants will produce high-tech components, as the cost of everything — from shipping and storage costs to protection of intellectual property — continue to rise. Couple the issues with China’s rising wages and the global economy is starting to shift, said Harry Moser, president and founder of the Reshoring Initiative, a nonprofit based in Kildeer, Ill. He said approximately 50,000 manufacturing jobs have been “reshored,” or production moved to the U.S., since January 2010. That’s because a few “tipping point” industries have discovered it’s cheaper, when weighed against wages in China that are rising at about 15 percent annually, Moser said. By comparison, Moser said U.S. wages increased by between 2 percent and 3 percent a year. “There are a lot of products that it makes more sense to make here,” said Moser, whose nonprofit analyzes and measures cost differences between offshoring and reshoring for private companies. The trade association-supported group’s goal is to get those firms to stay in the […]