Source: BusinessNZ
New Zealand’s exporters are navigating the toughest trading conditions on record, yet nearly half report growing sales overseas. BusinessNZ says it’s a testament to the resilience of the sector, and a positive sign New Zealand can weather further global disruption.
The latest ExportNZ DHL Export Barometer released today finds that all measured barriers to exporting have worsened over the past year, including higher transport costs, tariff uncertainty and rising geopolitical tension.
While that had dampened optimism, 45 per cent reported they had grown exports in the past 12 months and 57 per cent expected further growth in the year ahead.
BusinessNZ Chief Executive Katherine Rich says the results highlight the resilience of New Zealand businesses, as well as the scale of challenges facing exporters.
“Despite a worse outlook than a year ago, our exporters remain incredibly flexible. Many are investing in new technologies, improving their business processes and expanding into markets across Southeast Asia, India and the Middle East, all supported by New Zealand’s growing network of free trade agreements.
“Ensuring our exporters remain internationally competitive is vital for New Zealand’s economic future. Growing our exports means growing jobs, investment and incomes here at home.”
The survey found exporters are largely absorbing increased costs themselves, with 45 percent saying they are absorbing higher freight costs, while only 9 percent are fully passing those costs on to customers.
ExportNZ Executive Director Joshua Tan says businesses are working hard to protect long-term customer relationships by keeping prices as competitive as possible.
“Throughout the past ten years we’ve seen severe supply chain disruption, tariff confusion as well as fuel and input costs skyrocket. While shouldering many burdens and with the ongoing support of Officials, our business owners lead the way into new markets, forged connections and found a path for future exporters to thrive.”
Tan says that looking ahead, exporters remain cautiously optimistic with results showing more than half expect exports to grow over the next 12 months.
“Continued government support for trade promotion and expanding market access would help exporters capitalise on new opportunities.
“Exporters aren’t asking to be shielded from global competition. They’re asking for practical support that helps them compete successfully overseas, including continued progress on free trade agreements and assistance to build relationships in key international markets.”
The full ExportNZ DHL Export Barometer is available now on the ExportNZ website.
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.