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The 2018 ExportNZ DHL Export Barometer was released yesterday.

One of the most outstanding findings from this year's survey is that the number one barrier to exporting is concern over increasing costs in New Zealand due to the coming industrial regulation. Results show this is a major barrier for 32% of Kiwi exporters.

This is a change from last year, when 42% of Kiwi exporters cited "strength of competition in overseas markets" as the number one barrier. However, this has seen an 18 percentage point decline.

Such results illustrate how useful the ExportNZ DHL Export Barometer is for gauging movement in the export landscape, and highlighting where exporters need the most help. More on this below...

Catherine Beard

027 463 3212 or cbeard@businessnz.org.nz

Hanging on - PMI

New Zealand's manufacturing sector remained within a tight and low level of expansion for September, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September was 51.7.  This was 0.3 points lower than August, and within a tight band of only 1.5 points for the last four months.

The September results confirmed that the sector is currently stuck in low expansion mode.

BNZ Senior Economist, Craig Ebert said that “while New Zealand’s manufacturing sector remains stuck in a low gear, we should remain cautious about how much expansion we can reasonably expect of it given the industry remains extremely stretched for resources”. More... 

All Action at Kiwi vehicle maker

Action Manufacturing doesn't see much action in the annual results of its NZX-listed joint venture partner Tourism Holdings (THL).

New Zealand's biggest motorhome and speciality vehicle maker tends to be a footnote when THL reports its results each year.

But Action Manufacturing is very much in action in its own right, recording 15 per cent annual growth since it was formed in 2012, in demand on both sides of the Tasman for its design skills and composite material technology, and recently moving into refrigerated transport manufacturing.

Now the vehicle maker is poised to come out from behind THL's skirts. It is rolling out about 1500 vehicles a year, has 250 staff on the payroll, and annual revenue is projected to be $90 million, More...

Calling New Zealand’s best: Help us welcome the world at Expo 2020 Dubai

New Zealand at Expo 2020 is looking for suppliers to provide products for use in the New Zealand Pavilion at the next World Expo in Dubai. The items will showcase the best of New Zealand brands and products to a global audience.

“What a country presents at a World Expo shapes its reputation globally,” says Clayton Kimpton, New Zealand’s Commissioner-General to Expo 2020. “This is an opportunity to be part of an historic moment for New Zealand business and design, one that’s going to be seen and experienced by millions of people.”

Expo 2020 Dubai gives New Zealand the opportunity to profile its businesses, products and values to major markets in the Middle East, Europe, India and Africa. More...

Companies interested in becoming a supplier to New Zealand at Expo 2020 should submit proposals via the Invitation to Participate on the New Zealand at Expo 2020 website before 2 November 2018.

Nutty business calls for some out-of-the-jar thinking

Four and a half years ago, Roman and Andrea Jewell founded Fix & Fogg. Previously both lawyers, they made the choice to leave behind the corporate life and dedicate their time and energy to creating something meaningful, sustainable, and delicious. They decided to make the best nut butters.

They started out at local markets and specialist shops – gift and design shops as well as food. Their peanut butter was then spotted by a buyer from Wellington’s iconic Moore Wilson’s, and this marked a significant stepping stone. What makes them different to your average peanut butters you might buy from the giant brands at the supermarket is that every jar of Fix & Fogg nut butter is carefully blended and made from start to finish in their Wellington factory.

“We’re completely hands-on throughout the entire process,” says Thom Brooks, General Manager. “We think our award-winning butters are so popular because people can taste the difference in a product that’s handmade by humans who care about quality.” More...

C Beard

NASA tests NZ wool filter for use in space

Wool-based filter technology, designed by Auckland-based wool innovation company Lanaco, is one of several filter systems being evaluated by NASA to protect astronauts in the Orion spacecraft on forthcoming deep-space exploration missions.

It was being tested for use in Orion's emergency life-support system in the event of on-board fires.

For Lanaco chief executive Nick Davenport, having a product being evaluated for such a use, by NASA, was ''very significant'' as a validation of its technology.

''It doesn't get a lot better than that,'' he said yesterday, adding that playing a role in critical life support was ''pretty darn good''.

The Helix filter could be used as a pre-filter layer for emergency personal equipment and cabin air systems, preventing clogging in other filter layers by removing thick contaminants such as molten plastic.

Lanaco, previously known as Texus Fibre, specialised in fibre innovation and developing functional materials derived from wool. More...

R&D tax bill introduced

The Minister of Research, Science and Innovation has introduced the Taxation (Research and Development Tax Credits) Bill.

The Bill includes the proposed legislation for the Government’s R&D tax incentive package, previously announced on 3 October 2018.

For more information, see the Ministers' media statement, the Bill, commentary on the Bill, and regulatory impact assessment.

2018 ExportNZ DHL Export Barometer: Exporters remain largely confident, despite challenges ahead

The 2018 ExportNZ DHL Export Barometer released yesterday shows that despite a rapidly changing global marketplace, Kiwi exporters still remain confident and are handling the pace of change.

While the Kiwi export sector remains strong, exporters should prepare for any challenges ahead, particularly in the face of escalating tensions related to international trade and protectionist measures.

  • More than 50% of exporters have seen international orders increase over the last 12 months, and 60% of them remain optimistic that international orders will increase in the next 12 months.
  • Australia continues to dominate as the top export destination.
  • Increasing costs from industrial regulation and currency fluctuation seen as biggest concern for exporters.

Online marketing and e-commerce opportunities remain as untapped potential. More...

Pentagon releases assessment of manufacturing and defense industrial base supply chain resiliency

In response to Executive Order (EO) 13806, the Department of Defense issued a report entitled Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States.

The report indicates that the industrial base faces an unprecedented set of challenges including uncertain government spending; decline of critical markets and suppliers; counter-productive procurement practices; loss of vital skills in the domestic workforce; and aggressive industrial policies of competitors, namely China. A key finding of the report is that China “represents a significant and growing risk to the supply of materials and technologies deemed strategic and critical to U.S. national security—a concern shared by key allies.” More...

Update on the U.S, Mexico and Canada trade agreement

Just over a year after negotiations to modernize the North American Free Trade Agreement (NAFTA) began, the United States, Canada and Mexico reached agreement on an updated agreement, which is expected to be signed at the end of November.

Meanwhile Mexican manufacturing sentiment rebounded in September from a 10-month low in August.  The IHS Markit Mexico Manufacturing PMI increased from 50.7 in August, its lowest level since October 2017, to 51.7 in September.

Contract Manufacturers

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! 

There are some great resources - see here->>

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