It really is so good to see how the manufacturing industry in NZ is still positive. For the past 4 years the sector has seen constant expansion with the PMI (Performance Manufacturing Index) rising to 57.6 in June 2016. Although we have seen a slight drop in July the NZ PMI remains solid – especially in the global context.

The BNZ Report also showed a slight increase in positive comments from the industry in July, up a percent to 63.8%. A number of these comments were centered on business as usual, with continued growth in customer orders. BNZ Senior Economist, Craig Ebert, said “The only weak looking constituent of July’s PMI was around the stocks of finished products. Yet it’s hard to see this as a genuine negative. Not with new orders, as a demand indicator, still relatively strong at a seasonally adjusted 58.1”.

Fero has certainly seen the benefits of this positivity and are currently working with some major NZ companies manufacturing both here in NZ and offshore in China. This increase in NZ manufacturing means that nearly 80% of Fero’s outputs are now being exported and many clients have seen some cost down savings too.

The good news is the growth of the sector is set to continue especially as some of the growth is being supported by the hefty construction cycle currently being witnessed all over NZ.