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Home / Business / Economy

Most exporters sure change in Govt will benefit business: survey

By Errol Kiong
NZ Herald·
14 Jul, 2008 05:00 PM2 mins to read

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KEY POINTS:

Nearly 7 in 10 exporters believe a change in government will impact positively on their business, a survey has found.

The DHL Export Barometer survey of 350 exporters in the agriculture, manufacturing, tourism, and services sectors, has found that 68 per cent of respondents believe a different government
will help their fortunes.

That sentiment was very strong in the manufacturing and agriculture sector, at 75 per cent and 73 per cent, respectively. But 63 per cent of tourism businesses thought a change will have no effect.

"Everyone, not just exporters, has been feeling the impact of the slowing domestic economy. This could be a knee-jerk reaction for change," said DHL Express' New Zealand general manager Derek Anderson.

Respondents nominated free trade agreements with the US and China as having the most positive impact on their business, but China also had the highest negative impact, at 18 per cent.

The survey found that 56 per cent of exporters wanted marketing grants from the government to aid their export activities, way ahead of wider market access (39 per cent) and free trade agreements (34 per cent).

It showed exporters were shifting away from the markets of Europe, the UK and Japan, in favour of North and South America.

Those in the markets of China, South Asia and Australia were anticipating the highest increase in exports orders over the next 12 months.

One in four surveyed intended to take at least part of their business offshore in the next two years, with Australia and China the top destinations being considered.

One in three in the manufacturing industry already make some components off-shore, primarily because of lower labour costs.

Thompson said it would help the businesses to be more competitive.

"It's no different to what businesses domiciled in the UK and US have been doing for many decades, to the benefit of their citizens."

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