Developments

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, […]

Tony Robinson, Trade Commissioner Singapore There is growing demand for high-quality frozen meat, seafood, and convenience foods. As the shipping and logistics hub of Southeast Asia, Singapore is a gateway to the Association of Southeast Asian Nations (ASEAN) region. This makes it an ideal base for the South East Asia/Asia Pacific operations of many multinationals and New Zealand businesses operating in the region. Singapore is a highly developed market for food and beverage products, with affluent and sophisticated consumers looking for quality products and value for money. Singapore is New Zealand’s 6th largest trading partner and 13th largest market for F&B products with exports valued at NZ$546 million. There is very little domestic food production in Singapore and a heavy reliance on imports with up to 90% of their food sourced internationally. There is growing demand for high-quality frozen meat, seafood, and convenience foods, as well as a growing consciousness around sustainability, organic products and functional foods. The food and beverage opportunity is being given a boost by the Singapore government’s current drive for increased productivity. Compared with its low-cost neighbours, Singapore is a more expensive place to operate from, and this contributes to a drive for smarter, higher-value manufacturing. So food and beverage goods and services that help drive productivity are of increasing interest. Opportunities in Singapore for food manufacturers are also driven by changes in consumer attitudes. Sales of packaged food and ‘healthy’ products have increased as a result of consumers’ increasing consciousness about food safety and hygiene. Consumers are interested in branded, premium and added-value goods – crucial ingredients for a successful product launch in the country. Wealthy, time-poor consumers are looking for new processed and convenience foods, which can be sold at the premium end of the market. With growth opportunities available, the onus is on […]

Tim Anderson, Trade Commissioner Indonesia Around one third of the central Jakarta skyline has been built with input from Beca. The ever-changing skyline in Jakarta is a constant reminder that the development potential in Indonesia – ASEAN’s largest economy – is fast being realised, and New Zealand companies are playing their part. Beca’s engineers have been in Indonesia for more than 40 years and around one third of the central Jakarta skyline has been built with input from Beca. They have numerous building projects on the go, for example the Signature Tower which will be the southern hemisphere’s tallest building at around 115 levels, with 450,000 square metres of commercial space. New Zealand’s companies are also well poised to take advantage of the growth in aviation infrastructure. Glidepath provided the baggage handling system for the recently opened Surabaya Airport Terminal 2, the terminal built to meet growing demand in Indonesia’s second biggest city. Indonesia has 799 documented airstrips, including 233 airports (29 of which are for international traffic) and this is expected to grow to 299 by 2020. However, many of Indonesia’s airstrips across the archipelago are in remote “hot and high” conditions making flying conditions challenging – perfect for Pacific Aerospace’s P-750 XTOL extreme take-off and landing aircraft. The Indonesian State Planning agency recently noted that passenger movements across Indonesia are expected to reach 350 million by 2025 and the infrastructure investment required to meet this growth in numbers is estimated to be over $US15 billion. The current terminals at Jakarta Soekarno-Hatta Airport (known as Soeatta) – named after the first Indonesian President and Vice President – were designed to handle 22 million passenger movements. Last year, more than 60 million went through the airport which is more than Changi in Singapore and more than 4 times that of […]

Richard White, Trade Commissioner, New Delhi Technology and services provided by New Zealand companies are successfully finding niches within this huge growth.     The election earlier this year of a new government with a strong focus on economic growth is breathing new life and confidence into the Indian economy. Prime Minister Narendra Modi has launched a number of major initiatives including the ‘Make in India’ programme which aims to turn the country into a global manufacturing and exporting hub. Manufacturing currently contributes only 15 percent to India’s GDP, and the plan is to raise it to 25 percent through cutting red tape, developing infrastructure and making it easier for both local and foreign companies to do business. An estimated US$350-400 billion of private sector investment will be poured into infrastructure development in the five years between 2012 and 2017 to develop roads, ports, rail and airports. Mr Modi also wants to build 100 “smart cities” throughout India. Foreign governments have already committed major sums into infrastructure, e.g. Japan will invest US$35 billion into the Delhi-Mumbai industrial corridor while China will support development of high speed rail services connecting major Indian cities. Infrastructure development will extend into food processing, though the construction of mega food parks to help the industry grow from a current value of US$102 billion to US$260 billion by the end of 2015. India is the second largest global producer of horticultural products but only processes 10 percent of what it produces, and only 2 percent of fruit and vegetables produced in India are processed. The construction sector is projected to show an 18 percent CAGR over the next five years, this off a base of $441 billion revenue generated by the sector in 2013 including $325 billion of residential construction. What does this all mean for […]

Goskin Duman, Country Manager – Turkey Turkey continues to offer exciting opportunities for New Zealand businesses. Not only was bilateral trade at an all-time high of US$173.8 million last year, but relations are strengthening between New Zealand and Turkey with the commemoration next year of 100 years of ANZAC. The Turkish economy continues to prosper with 4 percent growth in 2013, and 4.3 percent in the first quarter of 2014. There is a growing middle class hungry for products and services. Istanbul alone is home to 17 million people. Organic products, healthy food supplements and sophisticated food and beverage products show around 20 percent growth rate in the last five years. With Turkey’s unique geographic position straddling both Europe and Asia, the country is increasingly becoming a hub for multinationals supporting the Middle East, Europe and Africa. Political unrest in parts of the Middle East is affecting exports, yet in 2013 exports reached US$151.7 billion. GDP per capita is now $US10.782 and increasing year-on-year. Turkey manufactures 60 percent of all its industrial goods in an area stretching from Bulgaria to the Chinese border – in other words from Eastern Europe all the way down to Asia. Turkey has started to become a major world player in a number of sectors. It is: • the second biggest flat glass manufacturer in the world • the fifth biggest automotive manufacturer in Europe • the eighth largest shipbuilder in the world and fifth in mega yacht manufacturing • the largest manufacturer of durable goods in Europe. While trade between Turkey and New Zealand is increasing, it is off a fairly low base. New Zealand’s traditional exports of butter and other dairy products, raw skin and aluminium have been the mainstay of our exports. But over the last three years we are seeing an […]