Business News

Today’s CPI release by Statistics NZ showed low inflation pressure, with a fall of 0.2% in the December quarter and a rise of 0.8% for the year ended December. This low inflation means the Reserve Bank of New Zealand (RBNZ) could cut the OCR to support growth and help with our overvalued exchange rate, say the New Zealand Manufacturers and Exporters Association (NZMEA). NZMEA Chief Executive John Walley says, “With annual inflation below the target band (between 1% and 3%) and below expectations, there is room for a cut in the OCR. This will help move our interest rates closer to the rest of the world, which will take some pressure off our “unjustified and unsustainable” exchange rate (as the RBNZ has repeated many times); helping to make our exporters and import competing manufacturers much more competitive, fuelling growth, employment and investment.” “The world is not what it was in the middle of last year. We have been of the view that the OCR rise last July would not have happened had it been delayed even to September. Much of the world is facing issues with persistent low inflation – a risk that needs to be considered in New Zealand around Monetary Policy alignment.” “Concern around the housing market remains, particularly in Auckland, and this could pose a financial stability risk – we encourage the RBNZ to continue to look at other tools to tackle this issue. Without such tools, the tradable sector will continue to bear the brunt of this through an overvalued currency brought about in large part by interest rates out of step with the rest of the world. Tradable inflation fell 0.8% in the December quarter and fell 1.3% for the year, non-traded inflation rose 2.4% for the year.”

The number of skilled vacancies advertised online in New Zealand rose 1.1 percent last month to its highest level in nearly six years as the Canterbury rebuild increased demand for skilled construction workers and engineers, according to the Ministry of Business, Innovation and Employment. The skilled vacancies index increased to a seasonally adjusted 121.5, the highest level it’s been since April 2008, the ministry’s Jobs Online report shows. On an annual basis, skilled vacancies climbed 7.4 percent in the year to December, with eight out of 10 regions across the country posting an increase in the year. New Zealand’s business confidence is at historically high levels as a reluctance by firms to push up prices puts pressure on expected profitability, according to a survey by the New Zealand Institute of Economic Research. Respondents to the survey said they expected to hire more staff in the coming quarter, but NZIER found much of the labour market was concentrated in a few regions and industries. Canterbury-based skilled vacancies rose 0.3 percent in the month and 8.3 percent on an annual basis. The region has the highest measure of skilled vacancies fuelled in part for demand of construction and engineering workers as the rebuild of New Zealand’s second largest city picks up after being devastated by a series of earthquakes in 2010 and 2011. Over the year, Canterbury-based vacancies for construction and engineering rose 16.8 percent in the year, and since the September 2010 earthquake, has soared 375 percent. Skilled vacancies for sales, marketing and advertising led the Canterbury gain, up 20.3 percent, as the region looks for workers to replace those who left the city after the earthquakes. Outside of the Canterbury region, skilled vacancies in Auckland, the country’s most populous city, edged up 0.8 percent in the December, for a yearly gain of 20.3 percent. Bay of Plenty increased 2.3 percent in […]

The Auckland-based company was named a finalist from more than 500 global entries in the WT Innovation World Cup 14/15, the leading worldwide innovation competition in the fast-growing wearable technologies industry. One of its partners Heddoko, which has incorporated StretchSense technology into its 3D sensing sports body suit, was also being named a finalist in the Cup’s sports and fitness category. Stretch sensor technology is the next breakthrough innovation in wearable technology, providing real-time precision information for soft objects. The sensors are worn on the body or on clothing and when a user moves, the sensor stretches, transmitting motion information to an app. StretchSense has a platform enabling technology that is already being used by more than 80 customers in 15 countries who are incorporating its sensors in a wide range of applications in areas including healthcare, sports and motion capture. A consumer product has not yet been developed using its technology but StretchSense chief executive Ben O’Brien says several are at the prototype stage. Founded in 2012 by O’Brien, Todd Gisby, and Iain Anderson, StretchSense is a spin-out company commercialising technology originally developed at the Biomimetics Laboratory at the Auckland Bioengineering Institute. O’Brien, who won the 2013 Prime Minister’s MacDiarmid Emerging Scientist Prize, says they saw a market opportunity early on for the technology and the rest of the world is now waking up to what stretch sensors have to offer. Globally, wearable technologies is a rapidly emerging industry with key analysts predicting 2015 will be when wearable devices gain broad traction among consumers. Research from Kantar Media shows that the health and fitness wearable tech market in Great Britain will rise to an estimated 13.1 million users this year. The winner of the WT Innovation World Cup will be announced at one of the world’s biggest wearable technology […]

Employers wishing to recruit school leavers have scored them below par for basic literacy and the use of English language in a recent survey. They were also unhappy with school leavers’ problem solving, team work and communication skills. The findings are from a survey asking employers about their level of satisfaction with the skills of school leavers and graduates of tertiary institutions. The survey was conducted by the Employers and Manufacturers Association. * “While many young people they wish to recruit are up to their expectations, employers have expressed serious concerns across several areas,” said Kim Campbell, EMA’s chief executive. “Employers are unhappy with school leavers’ literacy, communication and problem solving skills but pleased with their technology know how, self-management skills and capacity to learn,” Mr Campbell said. “Technology for both school leavers and graduates topped the class. “Overall, employers indicated the technology skills of school leavers met their expectations; 44 per cent said they were satisfied or very satisfied with the standard. “For tertiary graduates approval levels were higher with 67 per cent of employers saying they were impressed by their technology skills and a further 29 per cent neutral; just three per cent were dissatisfied. “Clearly business thinks our universities and technical institutes are doing a good job in the teaching of technology, and also for basic literacy,” Mr Campbell said. “Half the businesses participating in the survey reported they were satisfied or very satisfied with the basic literacy levels of tertiary graduates, with a further 39 per cent neutral. “Overall employers tended to rate the skill levels of tertiary graduates higher than those of secondary schools. “Other areas where school leavers scored well with employers included self management and planning, and their capacity to learn. “EMA recently proposed Work Readiness Certificates be issued to school leavers to […]

Manufacturers with robust environmental credentials improve their own business and ensure a stronger supply chain. Customers at each level of the supply chain are looking for environmental credentials. After all, producers, distributors, and suppliers each benefit when the larger cycle is committed to reducing environmental impacts. To encourage and improve a sustainable chain, procurement and purchasing at each step must consider environmental impacts. One large distributor working with dozens of suppliers in New Zealand is OfficeMax. This office supply company is committed to responsible environmental stewardship in its own operations, knowing that “the third-party auditing and certification shows our customers that we really are walking the talk and actively making a difference.” That credible work has led to a series of improvements, such as an impressive reduction in energy consumption and therefore reduced costs. Julie explains that “in our first two years our first site achieved a 26% year-on-year reduction in electricity usage. Nationwide, since 2009 we have been able to achieve a 5% year-on-year reduction.” The company is taking additional steps to ensure that its supply chain also benefits from the green advantage. OfficeMax conducts an annual review of suppliers, offering some suppliers mentoring and OfficeMax team support. To its own customers, it offers an EcoMax range and this range of products must have proven credible environmental qualifications. Whether your products are distributed by OfficeMax or another company, being able to demonstrate environmental credential speaks volumes about your organisation’s ethos, quality, and durability. While there are many types of credentials that might suit your organisation and sector, for many manufacturers an environmental management system or EMS helps you manage a wide range of aspects and impacts. An EMS assures a manufacturer that they are considering their environmental processes, such as waste management, energy and fuel use, freight and transportation, […]