National Exporter Outlook Survey positive about growth

13 July 2011

National Exporter Outlook Survey positive about growth

ExportNZ’s second National Exporter Outlook Survey shows that despite a volatile dollar, 50 percent of respondents expect their business profitability to improve in the next 12 months. The survey, which includes companies collectively producing over $3 billion of exports, also shows that 49 percent expect orders across all markets to rise slowly, and 17 percent to rise substantially.

Catherine Beard, Executive Director of ExportNZ, says what is particularly pleasing about the survey results is that 61 percent of respondents are manufacturers, which shows that despite a challenging exchange rate environment, manufacturers are surviving and thriving.

“These results demonstrate that those who are adding value to goods in New Zealand can still be internationally competitive, particularly if they offer products that are innovative and tailored to their customers’ needs. Manufacturers are finding good sustainable export niches and it’s good to see the positivity in the export sector extends beyond our traditional commodity exports.”

On average, respondents were earning 60 percent of their earnings from exports, and earning an average of $18.48 million, showing that exporting is lucrative once a company cracks it.

South East Asia, including China has overtaken the US, and UK/Europe as the second biggest market focus after Australia for the respondents, which mirrors the national export statistics.

Exporters cite the exchange rate volatility as the biggest obstacle to growing exports, followed by competitiveness of products and for some, a lack of offshore demand.

Most exporters would like more government assistance, with overseas market development topping the list. In terms of regulatory barriers, exporters would like some government agencies to be more timely, responsive and predictable (NZ Food Safety Authority), faster and improved facilitation of the flow of skilled staff and students (Immigration NZ), greater efficiency from Councils for planning approval, and better border controls between NZ and Australia, particularly regarding phyto-sanitary requirements.

Around a third of exporters said developing common product safety standards and energy efficiency standards across the Asia Pacific would be beneficial to exporters by simplifying market access.

“Exporters are telling us that while free trade agreements are important, so is tackling non-tariff behind the border barriers to export.”

While exporters are seeking more government support for developing export markets, they were less concerned that access to capital was a constraint on growth, and their second highest priority after market development assistance was assistance with R & D.

ENDS

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