Analysis

Most businesspeople approve of the Government’s handling of the COVID-19 outbreak, but many are uncomfortable with New Zealand’s resultant debt. And business wants a plan for raising economic performance to deal with Covid fallout. The key findings of the Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ- were presented at the virtual Deloitte and Chapman Tripp Election Conference hosted by BusinessNZ in Auckland today. This year’s survey shows a clear view by business that the Government has done well in its initial response to the Covid-19 situation. There are mixed feelings about whether the Government has spent the right amount on business support, but there is strong support for the wage subsidy and leave schemes. Looking ahead to the period of Covid- and post-Covid recovery, businesses want to see the Government focused on economic well-being, with a coordinated plan for recovery that includes building infrastructure. For the general business environment, businesses want to see the regulatory burden on business reduced, the RMA overhauled, and 90-day job trials allowed for all businesses. A large majority don’t want tax increases. Deloitte Chief Executive Thomas Pippos says, “The survey defines the areas of interest to New Zealand business. This year’s results show a clear focus for future governments, even with the high levels of uncertainty caused by Covid-19. “There is an understanding that as a country, we are dealing with an unanticipated and disruptive situation. Overall, survey results suggest there is general support for the actions taken by the Government to date in dealing with the Covid-19 pandemic which is the key positive the Government can take from the survey findings.” Chapman Tripp Chief Executive Partner Nick Wells says, “With little sign of the pandemic easing in the short term, and an uncertain prospect of a vaccine, our collective focus needs to […]

– Stephanie Pretorius, Intent Group New Zealand’s construction industry has been heavily disrupted since the arrival of Covid-19 to our shores. A relief package is now available, with the New Zealand Government investing heavily in the industry to the tune of $3B. Funded infrastructure projects include a significant amount of ‘shovel ready’ projects identified to support the short-term pipeline over the next 12 months. Despite extra funding, certain segments of construction are likely to still be negatively impacted. As an example, Auckland alone recently lost $500 from Council revenue budgets; the flow on effects are still to be determined. The funding pipeline may be affected for multiple years and there is risk of misalignment of capacity as funding may swing between years. The intent of the fast tracked ‘shovel ready’ projects is to quickly stabilise cashflow, as well as the pipeline for the industry, and to help construction survive in the short term. But how can we take this further and help construction to thrive in the long term? As a sector, construction has been ‘sailing close to the wind’ for a long time with tight margins and low productivity. The Construction Accord (Accord) has set the tone for the future, outlining goals for improved productivity, capability and resilience. Now is the time for industry players to take ownership of the direction for their own long-term sustainability. If improving productivity is an Accord goal – who will be the first to take bold action? Staking a claim to become excellent at what you do, and getting better every day, is going to pay dividends in terms of preferred supplier status, higher profitability, people retention and development, and ultimately long term survival. Many construction businesses took away lessons learnt from their Covid-19 experience as the ability to respond and adapt to […]

Manufacturers are calling on the Government for a pre‐emptive decision to allow all manufacturing (including exports) to remain operating if there is a move to Level 4. New Zealand Manufacturing Alliance* spokesperson Rachel Barker, CEO of Plastics New Zealand, says New Zealand cannot afford to shut down its manufacturing again and businesses need a decision now. “Another shutdown of our manufacturing businesses would be devastating not just for sector businesses but for New Zealand,” says Barker. “The Government has had months to work on a decision to keep manufacturing open during Level 4. “Our businesses are prepared, with proven safe work protocols in place for operating under Level 3, keeping thousands of Kiwis in jobs and safe. It would be a smooth transition into operations under Level 4. “We need to see a proactive and pre‐emptive decision now from Government to allow all manufacturing businesses to remain operating ahead of any possible move into Level 4.” “Keeping all manufacturing operating will be critical to keeping people in jobs, domestic and export supply chains moving and helping our economy keep ticking over.”

By Richard Morgan, Country Manager, Genpact The Covid-19 pandemic has disrupted all facets of supply chains. Whether it is in the retail, telco, or transport industries both global and local supply chains have been severely tested, having to adapt to new demand patterns, supply constraints and logistical challenges.  This unprecedented disruption has only magnified changes in consumer behaviour, under-investment in supply chain tools, technology, and people that were already challenging organisations.  As the risk landscape is set to only get more uncertain and complex in the future, building resilient and more agile supply chains is crucial.  Learning the Covid-19 lessons If Covid-19 has taught us something is that the strength of a supply chain is only as good as its weakest link.  Organisations must use the current disruption as an opportunity to do a full audit and assess how well its supply chain functions can better respond to future disruptions. To build long term resilience companies must re-examine their old supply chain assumptions and evaluate the strength of their end-to-end supply chains. Businesses need to fine tune demand planning, search for deeper visibility of material planning, test supply planning technologies and continuously evaluate logistics plans.  Supply chains must move from executors and a cost centre to a source of competitive advantage that unlocks operational margins and builds stability in an uncertain world.  Stabilising supply chains: a cross collaboration with risk management teams  To address the volatile nature of current – and likely future – supply chain operations, organisations should start by mobilising a dedicated crisis and risk management team that can help advise supply chain teams.  A cross collaboration with risk management experts can help build focused risk scenarios and assessments, as well as design new processes and frameworks for rapid replanning, demand forecasts, supplied engagement and reporting and governance.  Working […]