The manufactured manufacturing crisis hits crisis point

March 10th, 2014 at 3:00 pm by David Farrar

It was less than 12 months ago that combined forces of Labour, Greens, NZ First and Mana declared in New Zealand to be in crisis. The day before they announced this, confidence hit a then record high and things have only got better since.

The latest news is a disaster for their manufactured crisis. reports:

The total manufacturing sales volume had a record rise in the December 2013 quarter, Statistics New Zealand said today. This was largely due to a strong rise in meat and dairy product manufacturing.

After adjusting for seasonal effects, the volume of total manufacturing sales rose 5.7 percent, with meat and dairy product manufacturing sales up 15 percent.

Up 5.7% in one quarter – that’s incredible growth.

They make the point it isn’t just dairy and meat, even though they are the largest. Other quarterly increases are:

  • Seafood +2.7%
  • Fruit, oil, cereal and food +5.0%
  • Wood and paper +1.6%
  • Printing +8.5%
  • Non-metallic minerals +5.5%
  • Transport +5.9%
  • Furniture +6.2%

They also report the total spending on salaries and wages in the manufacturing sector increased 4.5% in the quarter.

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14 Responses to “The manufactured manufacturing crisis hits crisis point”

  1. alex Masterley (1,517 comments) says:

    If that’s a crisis then I am all for it.

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  2. Harriet (4,972 comments) says:

    Well this is a crisis – when your sole aim is to destroy the economy that is.

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  3. freedom101 (504 comments) says:

    Can Labour please declare a crisis in some other sector. We need the boost.

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  4. Neil (586 comments) says:

    Just remember that the Unions,Labour are looking at the old manual unskilled economy. Sklled workers are needed not migrants from the Pacific Islands.
    Around the 1900’s the horse drawn vehicle construction business collapsed. The passenger boat business collapsed in the 1950’s with the advent of airlines. However ships are now coming into a niche tourist market. US cotton mills starting closing when cheaper Asian textiles arrived which the population could afford
    I can remember in the 70’s the Mataura freezing workers earning more than me as a teacher. I was told quickly by many students they would be going to the freezing works and earning more than me on the first day. Gone in the 80’s and 90’s.
    The frightening thing is that todays worker may have 4/5 different life jobs.
    Just look at Australia where the unions have contributed to high wage costs and low productivity. The unions answer-subsidies by the govt. Thankfully Tony Abbot won’t go down that track. Is Australia really that attractive. I think not !!
    We have a great rural sector,sustainable and fits into our climate. Use of water is key.
    Whether you like it or not the market takes care of things naturally. The Unions are only protecting their own turf while Cunliffe unlike Christ cannot walk on water

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  5. Nostalgia-NZ (5,214 comments) says:

    I wonder what the figures will be like when we dig out of this hole.

    The Blues and the Warriors might also might benefit from some ‘down’ talking.

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  6. Sir Cullen's Sidekick (890 comments) says:

    What Labour is saying is that under Labour-Green-NZ First-Mana, the numbers would have been much better. That is what they mean by crisis….Get the drift?

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  7. burt (8,275 comments) says:

    Waiting for Cunliffe to publish a graph showing how manufacturing shrunk under Labour – but it will be different this time !

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  8. RF (1,399 comments) says:

    OMG.. We are ruined. Ruined I say.. Such wealth.. What shall we do with it.

    Really the left are bloody plonkers.

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  9. emmess (1,428 comments) says:

    total manufacturing sales rose 5.7 percent,

    Up 5.7% in one quarter – that’s incredible growth.

    Is that 23% annualized?
    Awesome if it’s true and I am not saying it isn’t, but I am little skeptical

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  10. kiwi in america (2,454 comments) says:

    David – the headline was magic!

    The contrast with the moribund barely growing US economy is stark. Question Time will be good for laughs at the expense of the tools who set up this ‘inquiry’.

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  11. Viking2 (11,471 comments) says:

    All very well being clever with the stats but a more critical analysis might reveal that its not as good for some sectors.

    After adjusting for seasonal effects, the volume of total manufacturing sales rose 5.7 percent, with meat and dairy product manufacturing sales up 15 percent.

    If the above is correct then manufacturing in a lot of other sectors has taken a big hit. That’s what the above sentence tells us.

    Other quarterly increases are:

    Seafood +2.7%
    Fruit, oil, cereal and food +5.0%
    Wood and paper +1.6%
    Printing +8.5%
    Non-metallic minerals +5.5%
    Transport +5.9%
    Furniture +6.2%

    Transport. Well of course it would grow with hundreds of extra logging trucks on the road and dairy tankers as well.
    But where is the real manufacturing for export say like houses, machinery, oh I don’t know but there must be something other than trees and milk. If not we have a problem.

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  12. wreck1080 (3,919 comments) says:

    agricultural type activities make up 70 or 80% though right ?

    eventually land reaches it’s productive / sustainable limits.

    As soon as the figurative price of beans collapses, then we’ll be in trouble having put all our eggs in one basket .

    I agree with viking2 here.

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  13. wreck1080 (3,919 comments) says:

    neil “We have a great rural sector,sustainable and fits into our climate. Use of water is key”

    That is if sustainable means continuing water quality deterioration . (see the recent govt report about how farming is increasingly causing pollution which is being fixed at taxpayer expense).

    We are privatising profits, socialising the environmental damage.

    And, water costs are being forced onto ratepayers, such as in the Hawkes Bay where ratepayers are up for the cost of a large dam to help out the local farmers.

    Not quite sustainable when farming is being given big subsidies, at least in some places.

    I continue to be amazed at the foolish who think farming is the savior of our country. 13 years ago it was the bane. Opinion fluctuates depending on the economic times.

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  14. hj (7,026 comments) says:

    I’m a bit skeptical of stats NZ and their media releases.

    Construction sector likely to underpin manufacturing growth
    Updated at 7:55 am on 11 October 2013
    Growth in the manufacturing sector will be underpinned by activity in the construction sector, with residential building activity being a main driver.
    The BNZ-Business New Zealand Performance of Manufacturing Index fell to 54.3 last month, down from 57.1 in August. A reading over 50 indicates expansion.
    The index has been above 50 for the last 10 months and 2013 looks set to be one of the best years for the sector for some time.
    BNZ senior economist Craig Ebert says that while manufacturing growth slowed in September, the sector still experienced better than average expansion, and construction activity in Canterbury will provide a boost to manufacturing.
    But Mr Ebert says the global backdrop is still difficult and the exchange rate is also a headwind. He says a lot will depend on the degree to which the domestic economy can keep the manufacturing sector growing, with construction an identifiable force and not just in Canterbury but across the economy.

    http://www.radionz.co.nz/news/business/224346/construction-sector-likely-to-underpin-manufacturing-growth

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