Growth for manufacturing exporters in 2015

Growth for manufacturing exporters in 2015

Data released by Statistics New Zealand yesterday reflected the improvements felt by much of the manufacturing and exporting sector in 2015 compared to the previous year, with increases across a number of high-value manufactured export categories, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive Dieter Adam says, “Annual values of mechanical machinery and equipment exports increased 5.7% on 2014, electrical machinery and equipment exports increased 15.7%, optical, medical, and measuring equipment exports improved by 18.5%, and plastic and plastic articles exports increased 2.3% on 2014.

“Manufacturers and exporters have battled through some rough years following the GFC, with soft international markets and an overvalued currency hitting sales volumes, competitiveness and margins. The changes they had to make to their business to survive in that environment started to pay off in 2015, as conditions improved. This is contrasted by a drop in the primary sector, with export values of milk power, butter, and cheese down by 20.6% on 2014, for example.

“This is not a case of pitting manufacturing exports against others, however. New Zealand needs to grow its exports across the board in order to become a wealthier country where we can afford to pay for expensive new medical treatments, for example. But we know that commodity prices are inherently prone to strong cyclical fluctuations, and it is time more of us recognise the stabilising and value-adding influence high-value manufactured goods exports have in this environment. Prices and volumes for manufactured goods exports are far less volatile. Jobs in manufacturing generate on average 1 to 3 jobs elsewhere in the economy, and every $1 of value added in manufacturing creates $1.4 of additional value in other sectors.

“New Zealand needs to get much better at creating an environment where we can grow export values across sectors on a sustainable basis. 2015 was a good year for manufacturing exports, but work remains to be done if we are to achieve this goal” says Dieter.

ENDS

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