Business Costs Continue Unrelenting Rise in 2010

Max Bowden's BusinessSense: Business Costs Continue Unrelenting Rise in 2010

18 February 2010

Business Costs Continue Unrelenting Rise in 2010

In its annual release of "Business Costs 2010", The Main Report Business Letter, says the cost of doing business this year is likely to keep heading upwards, although lower inflation across the wider economy, and lower wage demands will help.

The Main Report Business Letter says as New Zealand emerges slowly from recession the exchange rate will stay high, which will help businesses with the cost of imported items, such as computers, stationary, cars and fuel.

But there are a lot of operators in the B2B sector who are looking to claw back reduced profits from a tough 2009, so as times get better, costs will start to rise.

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Business Costs 2010 analyses 22 key cost factors for business and predicts whether they´ll rise, go down, or stay flat. 13 categories are expected to rise in cost, three look set to fall - wages, computing and travel - while six are expected to stay relatively flat, including the exchange rate, shipping, motoring, telecoms, human resources and compliance costs (aside from GST which will create some costs as businesses gear up for the anticipated change to 15%).

In 2009 The Main Report Business Letter predicted increases in 12 of the 22 categories, falls in seven and three to stay the same.

The Main Report Business Letter concludes with strength returning to the economy, albeit rather slowly at this stage, businesses will be anticipating regaining some of the ground they lost in 2009. This will mean overall increases in the cost of doing business in excess of the rate of inflation for 2010.

See the attached PDF for the full Business Costs 2010.

Max Bowden
Publisher In Chief
The Main Report Group
03-365 3891
mbowden@themainreport.co.nz

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