Business News

Numerous niche and high-tech manufacturers are among the 27 finalists in the 2012 New Zealand International Business Awards, which recognise the myriad of ways companies now do business globally. Manufacturing finalists include firms designing, making and servicing refrigeration and heating systems, magnets used in electronic goods, dental equipment, storage and packaging solutions, and aircraft engines and baggage systems. Seven of the eight business leaders who are finalists in two categories that celebrate an emerging and an outstanding leader in international business also have links to manufacturing industries. Winners of 10 categories at the awards, which are run by New Zealand Trade and Enterprise (NZTE) and strategic partner ANZ, will be announced on Wednesday 21 March. Information about the finalists can be found at www.nzte.govt.nz/awards. NZTE Chief Executive Peter Chrisp said it was fantastic to have 27 businesses representing a wide variety of industries and regions as finalists in the prestigious awards. “This year’s finalists are using our country’s world class technology, reputation and skills to develop high value brands and push out into new markets. These are ambitious, internationally focused businesses that New Zealanders should be proud of. “Sharing their stories helps build understanding of what is required to succeed internationally as well as giving us an opportunity to recognise the contribution they’re making to New Zealand,” Mr Chrisp said. David Green, Managing Director, Institutional New Zealand at ANZ, said New Zealand companies were capitalising on the growing global demand for diversity of products which New Zealand produces well. “While global economic confidence has declined, our export growth is evidence of a domestic economy which is favourably positioned for global trade flows. The 2012 finalists reflect New Zealand’s progressive move away from our traditional markets. “Historically, 80 percent of our exports went to Europe and the Americas, the majority to […]

The draft inquiry report by the New Zealand Productivity Commission on the international freight transport services raises some useful and sensible recommendations to improve the productivity of New Zealand’s international freight, says BusinessNZ. Chief Executive Phil O’Reilly says the productivity of international freight services is highly significant for New Zealand. “Around 30 percent of our GDP is generated from the exports of goods and services, so freight services productivity can impact on the productivity of a substantial number of New Zealand enterprises. “BusinessNZ strongly agrees that councils should carefully consider what their ownership objectives are and how these objectives are best pursued. These are central to the performance of organisations. “The draft report makes some useful suggestions for improving the governance of ports and airports, which are worthy of careful consideration. “Also of particular note are the recommendations around improving employee relations to promote better trust, shared values and outcomes, and more productive workplaces. “BusinessNZ considers the Productivity Commission’s draft recommendations worthy of active consideration by the Government and port stakeholders.”  

The Government’s announcement that it is banning industrial gas certified emission reduction units (CERs) from being purchased in New Zealand will potentially have a serious knock-on effect to the costs felt by businesses and households, says BusinessNZ Chief Executive, Phil O’Reilly. “BusinessNZ supports emission trading as the most effective means of delivering an efficient carbon price into the economy. However, it’s imperative that businesses are able to find the least cost form of carbon abatement wherever it is. “Kiwi businesses will be forced to buy higher priced units, resulting in increased costs for both business and households at a time when they can least afford it. Trade-exposed businesses, already at a disadvantage because their competitors do not face a similar price on carbon, will potentially have their international competitiveness further undermined. “It would be better – as we advocated – if the New Zealand Government instead worked with the UN on issues of environmental integrity of CERs. Only then if they are found to be flawed, consider banning them, if not, why impose extra costs on New Zealand? “The Government’s decision appears to call the future use of all CERs into question, undermining a key fundamental element of the trading scheme. “Just because the EU and Australia has made the decision to ban industrial gas CERs, before the UN has completed its work, does not mean it is right for New Zealand to follow. The EU has a whole different set of motivations, including the swap-out of old Soviet-era technologies for more carbon efficient ones in the Eastern European countries. New Zealand is already well ahead of the game, with over 70 percent renewable energy and businesses operating at world-best carbon intensity practice. The only thing banning industrial gas CERs here will result in is greater costs.”  

By Sir Ken Stevens, KNZM,Chairman, Glidepath Group. If you haven’t got the message yet – you may have missed the bus. 2011 has dealt us some hearty blows and some poignant messages. I think that we’ve all seen tightening margins and increased competition for what is a smaller pot. My guess is that 2012 will be even tougher and that a great shake out will be seen. My strategy will be: doing what we do – better for less – and that’s what we all want as consumers, do we not! I’m in the commercial aviation industry. 16 years ago I could fly roundtrip to Brisbane for $1040. Today, it costs just $570 with advance purchase. See the pressure that we the consumers are driving into our markets? We all need a strategy to deal with this. The airlines must have found one as they are still in business. And that’s where we need to be this time next year – still in business. While you are at the beach this New Year consider this:- Plan to reduce your overall costs of goods – if not you will suffer in 2012 Can you trim your overhead by 1/3 and still get by? Are your processes and technologies truly world class – someone else’s will be. How are your sales processes – are you connecting effectively – providing real value – what’s your follow up like – do you truly listen to your customer or give them what you think best? These are simple thoughts and are well capable of being implemented in 2012. There are no tangible reasons for us to expect an uplift in business confidence in 2012. Export markets will be doubly tough but then exporters are resilient creatures and will get through. The rest of you will […]

  Strategic Elements Ltd is involved in an aggressive program of field work on the West Coast of New Zealand. The West Coast field work marks the start of a wider program aimed at discovering large new sources of valuable strategic and precious metals. Results will be reported from each prospect as the Company receives information from its geological team. A company-wide phase of activity is intended over the next few months that includes: (1) Fieldwork across a number of projects on the West Coast NZ. (2) Fieldwork on the Mandamus rare metals project on the East Coast NZ. (3) Grant and commencement of work on a significant new tungsten/tin project in Ireland. (4) Fieldwork on Australian projects. (5) Airborne geophysical surveys to detect geological bodies hidden under cover. Managing Director Charles Murphy said “an intense period of activity has started that will lead us strongly into the New Year. General market conditions are still tough; however we are positioning ourselves to take advantage of any rebound that may occur in the first quarter of 2012.” The field team has begun to comprehensively explore through a geologically rich belt adjacent to the regional ‘Alpine Fault’ on the South Island. They will progressively commence work on each prospect until the end of January 2012. It is believed the west coast region has considerable mineral potential, however much of the surface area contained within the project is covered by vegetation due to humidity and rainfall. The project area has remained highly underexplored due to the covered surface. Critically, airborne geophysical data that can identify geological bodies under the covered surface has never been available. However a sudden escalation in exploration is expected, with the NZ government funding a multi-million dollar airborne geophysical survey to provide information on what lays hidden beneath the surface […]

  Employers are taking a positive outlook into 2012; 44% of them report they are likely to increase their staff numbers next year, says David Lowe, Employment Services Manager for the Employers and Manufacturers Association. The signal is from the EMA’s Annual Employment Round Up Survey conducted last week with 508 responses. The survey has been run for the past 5 years. “We attribute the resilient employment outlook to some extent to the useful changes to employment law brought in at the start of the year,” Mr Lowe said. “About half the businesses report the employment law changes passed last year have assisted them. “The problems the law changes addressed are not significant for all businesses but for those that are affected they tend to be very significant. “Nevertheless the extent that the new laws have helped is a surprise given they have been in place just nine months. “For instance 79% of employers in the survey make use of trial employment periods which they say encourage them to hire sooner than they otherwise might. “Other findings include 60% of employers are finding it hard to recruit skilled employees with 39% reporting difficulty finding suitable staff in general. “Job security is an issue. 34% of employers report no one left to work elsewhere during 2011, and a further 35% said only ‘a few’ had moved on to new jobs. “Employees who are aware the business they work in is in good shape are cautious about moving to another employer they know far less about. “18% of employers in the survey said that at least one of their employees had left for Australia. “69% of employers reported they are open to consider shifting from ACC to a private insurer when a law change makes this possible. 15% say they will definitely […]

The time has come to end the disruption on the Auckland waterfront, the Employers and Manufacturers Association says. “Business and the public are tired of the cat and mouse game the union has engaged on at the Auckland port,” said Kim Campbell, EMA’s chief executive. “Its difficult to understand what the endgame is intended to be. No one understands what the union is trying to achieve. “Now the Port of Tauranga has confirmed no more ships can divert there for the last two weeks of the year due to a KiwiRail shutdown, highlighting Auckland’s vulnerability. “Meanwhile damage is being caused to many other businesses dependent on the port for their imports and to supply export markets. “Jobs are being put at risk. “Auckland ratepayers should be up in arms because ultimately they are footing the bill. “The union responded last week to a 10 per cent pay increase on its hourly rate for members with yet another strike notice! Most Auckland workers would be very happy to get such an offer. “The port needs flexible work practices for our businesses to be competitive – the Maritime Union needs to recognize that and join the rest of us in the 21st century.”  

Kim Campbell The decision by Maersk to permanently shift its Southern Star container shipping service from Auckland to Tauranga is most concerning, the Employers and Manufacturers Association says. “Auckland importers and exporters can ill afford the extra time and cost of freighting goods to and from Tauranga or via other alternatives,” said Kim Campbell, EMA’s chief executive. “Shifting more containers to and from Tauranga won’t help our carbon footprint with unnecessary rail freight and more trucks on the road. “Longer lead times, and increased costs are not what we need. “All businesses need to adopt more flexible work practices to retain their competitiveness, and the law must ensure managers are able to manage a business. “Any suggestion that a union owns jobs in a workplace is completely outdated. “The longer term implications are that New Zealand’s reputation as a supplier of quality goods, and our credibility as an exporter are being put at risk. “It’s one thing to disrupt the supply of Christmas presents with all the pain that causes our retailers, and another entirely to cause permanent damage to a major part of New Zealand’s supply chain. “We certainly hope this is not the beginning of an exodus of work from the ports of Auckland. “We note the Ports of Auckland will withdraw its lock out notice if the union withdraws its strike action.”  

The release of a new report by IPENZ, ‘Realising Our Hidden Treasure’, provides valuable information on the real possibilities of boosting New Zealand’s economy and standard of living, while protecting our natural environment, says ExportNZ Executive Director Catherine Beard. “We’re on a downward path compared to other OECD countries, and we need to look at all of our country’s means of raising our economic base so New Zealanders can enjoy a high standard of living. “If we can’t raise our earnings per capita, we will continue to slide downwards as we lose our best and brightest to other countries. “There are responsible ways of realising the untapped resources New Zealand is sitting on, and we need to have a mature and informed discussion about this as a country, given the large potential benefit to all New Zealanders. “Reaching an agreement on developing New Zealand’s natural resource wealth, while safeguarding our natural environment, is now an urgent priority.”  

The New Zealand Manufacturers and Exporters Association (NZMEA) is advocating an Official Cash Rate (OCR) cut next week in response to the problems in Europe and the USA. A cut would help to take some pressure off the currency in the short-term and add some kick to any OCR rises later on. NZMEA Chief Executive John Walley says, “It is naïve to think that we will be insulated from the problems in Europe. While only around ten percent of our exports are sold there the impact of debt problems there will make it more difficult for New Zealand to borrow offshore.” “The US Federal Reserve, Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank have agreed to lower the interest rate on US dollar liquidity swap lines by 50 basis points. Clearly other central banks are taking concerns in Europe seriously.” “The terms of trade decline reported by Statistics New Zealand yesterday demonstrates the urgency of acting to help exporters. The more we earn offshore the better the position of NZ Inc if problems do strike. An OCR reduction would help with this.” “A cut in the OCR now would also be likely to keep more mortgage holders on floating interest rates making OCR rises in a year or two more effective at restraining non-traded inflation.” “We continue to promote a Reserve Bank Act that targets non-traded inflation rather than headline inflation, but an OCR cut, in line with what our trading partners are doing, would help keep pressure off the currency in the short-term.”