Ata mārie koutou,

This month we delve into the latest Preformance Manufacturing Index (PMI) figures, providing you with an analysis of the industry's performance and trends, as well as looking at these comparatively to our trading partners.

Last week we held our annual government procurement seminar in Wellington and Auckland. It was great to connect business with buyers in Government, and we had fantastic feedback on the value of the day, so keep an eye out in the future for the next seminar in the series.

Looking ahead, we have a seminar focused on carbon reductions in manufacturing. As sustainability takes center stage, we aim to equip our members with the latest strategies and best practices to navigate the evolving landscape of sustainable manufacturing.

Ngā mihi
Josh

New Zealand’s manufacturing sector experienced another decline in activity during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for April was 49.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Although this was 1 point up from March, it was still well below the long-term average activity rate of 53.0.

BusinessNZ’s Director, Advocacy Catherine Beard said that the stresses and strains of the wider economy appears to be playing out in the manufacturing sector.

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Last week we wrapped up our annual BusinessNZ procurement seminar in both Auckland and Wellington. The seminar brought together industry professionals, government representatives, and key stakeholders. The event proved to be an insightful and engaging platform for discussing procurement practices and strategies within the public sector and how Businesses can work with Government. Kindly sponsored by EY,  we had speakers from Ministry of Business, Innovation and Employment (MBIE), Te Whatu Ora, Kainga Ora, and the Department of Corrections. We also wrapped the day up with a session by Caroline Boot, the director of Clever Buying and NZ Procurement & Probity Services and Stephen Mockett from Plan A, who are experts in helping businesses to win contracts. Check out their websites for more information.

Keep and eye out for next years seminar!

The Government should introduce accelerated depreciation for manufacturing technology in this year’s Budget, if it wants to kick-start manufacturing businesses’ investment in advanced equipment and boost productivity. That’s the message from Employers and Manufacturers Association boss Brett O’Riley.

O'Riley told Newsroom accelerated depreciation – which effectively reduces the cost of a companies’ new investments by allowing them to deduct the money they spent from their taxable income more quickly – is the key incentive to support the Government’s Advanced Manufacturing Industry Transformation Plan.

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At the start of the year we looked at the main global macroeconomic trends small business owners need to keep an eye on this year - inflation, economic growth and finding/retaining staff. Four months into 2023, we revisit how these trends are tracking.

The macroeconomy has largely performed as expected since the start of 2023. The world economy is facing some considerable challenges, but on a more positive note the outlook has not become worse. Inflation is coming down and central banks appear to be nearing the end of their tightening cycle. GDP growth is slowing broadly in line with expectations of little or no growth, especially in advanced economies. Labour markets appear to be loosening a little in response to slowing growth but there are no signs of sharp increases in unemployment. The main negative development since the start of the year has been a new risk emerging in the form of banking sector instability, especially in the United States.

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New Zealand beverage co-manufacturer Free Flow Manufacturing is to open the country’s first dedicated plant-based milk factory this year.

The company, which is setting up the facility in east Auckland, has revealed one contract secured so far – with oat-milk brand Otis.
“Grocery spending on plant-based milks in New Zealand increased by 44% from 2019 to the end of 2022, with sales jumping from NZD61m (US$37.8m) to NZD88m,” Free Flow Manufacturing co-founder Scott Day said in a statement that did not provide the source of the figures. “Despite this, New Zealand has had to rely on mainly imported products or those manufactured overseas to meet this demand.”

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Are you a manufacturer just starting to navigate the world of carbon, importance of tackling climate change and wanting to start or do more to reduce your emissions? You may have done an initial carbon footprint or be in the process of doing one, but know your main emission sources… You may also be getting some parental pressure from your parent company – or even those you supply

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NZS3910 is the most commonly used build-only standard form construction contract in the New Zealand market. Since the last version was released in 2013, changes in market practice, global and domestic conditions, attitudes towards risk allocation and legislative reform, meant it was necessary to undertake a comprehensive review of the NZS3910 template.

The New Zealand Infrastructure Commission, Te Waihanga and the Construction Sector Accord jointly commissioned Standards New Zealand to lead and manage the review, with a committee of representatives from across the sector.

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For updates on BusinessNZ advocacy and for the latest Advocacy Update, BusinessNZ's advocacy newsletter, have a look at the new advocacy the website here.

Don’t forget to check out our contract manufacturers directory if you are looking for contract manufacturing support or you are wanting to advertise your services.

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