MANUFACTURING complex activity , and this is an area where policy changes can have a major impact on investment .
The past year has generally been more positive for manufacturers and exporters in New Zealand . A significantly overvalued currency continues to be an issue for margins and competitive pressure , but a bit of a recovery in export markets and improving domestic conditions , for some , have provided a lift in activity .
The NZMEA survey has shown a trend of improving year on year export sales , with falling domestic sales throughout 2014 , coupled with consistent expectations of improving future conditions .
New Zealand has had some success in achieving a range of Free Trade Agreements ( FTA ) which has helped the tradable sector , the FTA with China being the most significant in boosting growth recently , but largely in commodities not complex products . Any future FTA ’ s need to be negotiated with the aim of improving conditions for complex manufacturers and high tech goods , as well as simple primary and processed primary production , to ensure complex activity can grow and fuel future innovation and capability development in New Zealand .
Trade between New Zealand and China continues to grow . However , we have seen the start of a potential slow down in China ’ s growth – a risk going forward as we become more reliant on trade with China .
The manufacturing and exporting sectors are vital for the success of any economy , and even more so for small open economies like New Zealand . The NZMEA believe a continued focus on creating a level playing field will promote vital investment in the tradable sector , that investment will promote growth , innovation and complexity . As a result we will see stronger growth across the economy , a more balanced and diverse economy and more highly skilled jobs – helping improve material living standards for all .
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