Manufacturing set to drive economic growth: NZIER |
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Manufacturers of metal products, machinery and equipment can look forward to faster growth from now to 2013 than over the past five years, according to new research from the New Zealand Institute of Economic Research (NZIER), recently commissioned by Competenz. Machinery and equipment manufacturing is forecast to grow at nearly twice the rate of the economy as a whole from now to 2013 - the fourth fastest growing industry sector of the 29 surveyed. Only mining and quarrying, communications services and business services are expected to grow more quickly. NZIER forecasts economic growth (measured as growth in real GDP) of 1.1% in the year to March 2010, 2.8% growth in each of the next two years and 3% in the year to March 2013. While the recession is presenting plenty of challenges for business, there are good reasons to stay positive. NZIER's research suggests more resilience in manufacturing than in the economy as a whole. A net 44% of firms across all sectors reported a drop in output in the last three months of 2008, compared to 33% of manufacturing firms. Manufacturing firms also believed they'd fare better than the economy as a whole in the first quarter of 2009 - 31% expected their output to fall, compared with 43% of the economy as a whole. Prices in the manufacturing sector seem to be holding up better than elsewhere in the economy. A net 14% of manufacturing firms increased their selling prices in the last quarter of 2008, and a net 13% expected they would do so in the first quarter of this year. And after the tight labour market of recent years, manufacturing firms say it's now easier to find skilled and unskilled labour. Businesses poised for growth need to ensure their employees give them a competitive edge. Savvy employers are using down-time from a drop-off in production to invest in training - and we continue to see steady demand for Competenz-arranged training. |