Exporters' confidence moving on up ...

Exporters' confidence is growing despite ongoing concerns about exchange rates and rising fuel costs, a survey shows.

The fourth biennial DHL Export Barometer out today shows the high dollar remains the biggest concern, with 72 per cent of exporters saying exchange rates will negatively impact on sales during the next year.

Rising fuel costs came second, identified by 62 per cent of companies as an issue, followed by overseas competition, identified by 46 per cent.

However, the report found export confidence had grown despite these concerns.

ACA Research surveyed 300 exporters in agriculture, food, beverage, manufacturing, tourism and services sectors for the report developed with New Zealand Trade and Enterprise. It found that 65 per cent of exporters expected profitability to increase during the next 12 months, up from 55 per cent surveyed in March.

Similarly, 63 per cent expected export orders to rise during the next 12 months, even though only 49 per cent reported a rise for the previous year.

More than a third of exporters said they would earn enough to reinvest in plant and machinery and 77 per cent plan to give staff a pay rise.

Tim Gibson, Trade and Enterprise chief executive, said though exchange rates were a major concern for exporters, many were taking a strategic approach to mitigate its impact.

He said it was encouraging that "almost one-third of exporters have developed international business partnerships offshore, such as investing in joint ventures, instead of relying on direct sales arrangements".

Bob Fenwick, managing director of Auckland manufacturer Planhorse Systems, which exports 80 per cent of its filing systems, says many medium-sized exporters are "not confident at all" while the dollar remained at present levels.

The rising kiwi had eroded profit margins from price lists and many of the country's 10,000 exporters were suffering badly, Fenwick said.