Survey shows export sector in good health

New Zealand exporters are shrugging off the country's reputation for meagre spending on research and development.

The latest export barometer by courier company DHL showed New Zealand exporters were "innovative and forward looking", with two out of three exporters introducing a new product in the past year, while two in five exporters invested in new technologies.

DHL Express general manager Derek Anderson said it was pleasing to see business investment increasing.

"New Zealand is among the OECD countries with the lowest levels of R&D (research and development) business expenditure, alongside those countries with the lowest social-economic backgrounds," he said.

"In the past, this lack of investment has hampered our international competitiveness.

"It's encouraging that our research shows a greater willingness by exporters to invest in the future of their businesses."

New Zealand Trade and Enterprise (NZTE) chief executive, Tim Gibson agreed.

"It is heartening to see that exporters are realising the economic value of innovation and enterprise," he said.

On the flipside, the survey showed that although agriculture remained the most significant export sector for New Zealand, it lagged behind others in the level of innovation and new product development.

"If we are to maintain our dependency on agriculture we need to migrate to a different business model that will enable us to produce higher value, more sophisticated products and services," Mr Anderson said.

The survey showed an export sector in good health, with over a third of respondents planning to spend on key areas in the next 12 months.

Those areas included technology (42 per cent), plant and equipment (40 per cent), additional staff (39 per cent), research and development (39 per cent), and market research (35 per cent).

That was a significant improvement on the May 2005 barometer results, when exchange rate pressures forced 42 per cent of exporters to cut back on future investment plans and 21 per cent to reduce staff numbers.

Exporters were also upbeat about their overseas sales prospects, with 66 per cent expecting to increase export orders over the next 12 months.

The results were just as positive in terms of profitability with 67 per cent of respondents expecting greater profitability in the coming year.

The agriculture and food and beverage industries were the most optimistic with 61 per cent anticipating increased export orders.

The DHL export barometer is produced in consultation with NZTE. The results gauge the opinions of experienced New Zealand exporters, with 73 per cent of those surveyed exporting for more than ten years.

- NZPA