Crisis? What Crisis?

Everything that Labour touches turns to crap.

Remember the manufacturing crisis that they manufactured?

I wonder if David Shearer, Russel Norman and the Trade Unions will admit they were wrong….

Tina Morrison from BusinessDesk reports on Manufacturing:

New Zealand manufacturing activity rose to its highest level on record for a July month, reflecting a broad expansion.

The BNZ-BusinessNZ performance of manufacturing index rose 4.3 points to 59.5 in July from June, the highest result for a July month since the survey began in 2002 and the third highest monthly result on record. A reading above 50 indicates the sector expanded, while a fall below 50 shows contraction. 

New Zealand manufacturing is underpinned by domestic demand from the construction sector on the back of the rebuilding of earthquake damaged Christchurch and demand for housing in Auckland, the nation’s biggest city. Domestic demand is outweighing a weakness in our biggest export market of Australia, where an economic slowdown and the higher New Zealand dollar are crimping demand.

“Production and new orders continue to lead the charge, with signs that employment is starting to join in,” Doug Steel, an economist at Bank of New Zealand, said in a statement. “The strength is broad-based with expansion indicated by all major sub-indices across industries, regions and firm size.”

 

  • Mr Sackunkrak

    Clearly Labour and the Greens are having a crisis crisis.

    • Travis Poulson

      It won’t overshadow the polling crisis. Or the leadership crisis. Or the dead wood crisis. Or the thoughts best kept off twitter crisis. Or the lack of talent crisis.

  • In Vino Veritas

    The crisis thing is not soley Labour’s domain. It should be remembered that the Greens and NZ First were also involved in talking up the “manufacturing crisis”.
    Oh, and there is also the “currency crisis” and the “housing crisis”, not to mention the “labour crisis” and “environmental crisis” which have the fingerprints of either all or at least two of these parties. Doom and gloom is all they have as policy at the moment. And should they get into Government, their perception will be converted into reality.

    • Whanga_Cynic

      Don’t forget the GCSB Crisis. That’s gone well for them the last day or so – TUI!

      • johnbronkhorst

        So you are saying……..Supertramp had it right!!…Crisis what crisis?

        • Whanga_Cynic

          Correct

  • tarkwin

    To be completely honest, things haven’t been too flash up here of late. June was awful, July was a bit better and August will be a bit better again. Mind you this is the first time we’ve gone backwards in nine years. Builders, concrete people etc are starting to go, so hopefully we’ll pick up soon.

  • philbest

    The late Prof. Sir Paul Callaghan would probably have been pleased. He was constantly suggesting that NZ’s economy should move “beyond the farm and theme park”.

    Something must be going right if manufacturing is rising. Of course all growth in wealth in the global economy for the last 60 years has been in the “urban” part of nations economies, and NZ has missed the trend badly.

  • surfisup

    but you include commodity production in the manufacturing figure.

    We know there is a global demand for dairy and price increases have more than wiped out the effects of the dollar.

    The economy is incredibly distorted by milk production. All eggs in one basket so to speak.

    However, given the growth of China and world protein deman, perhaps it is a good basket to have.

    • johnbronkhorst

      No it’s not!!
      All sorts of businesses are expanding. Building new buildings for production and new warehousing for the storage of more raw materials and more finished product…(NOT in the dairy industry).

      • surfisup

        Perhaps if there was no christchurch earthquake it would be a different story , eh!

        • johnbronkhorst

          NO it’s happening in central North Island, Taranaki, Manawatu and Rangatiki!!!
          As below, since you don’t know what you are talking about, I suggest you STFU!!

  • johnbronkhorst

    There is expansion of industry, everywhere.

    • surfisup

      Yes, like coal mining right?

      • johnbronkhorst

        Seeing new factories on the drawing board and foundations for expansion….EVERYWHERE!
        Personally, I am looking forward to supplying much of the equipment to them!
        EDIT: So until you actually know what you are talking about…..suggest you STFU!!

    • surfisup

      and textiles too , right?

  • JC

    This was always going to be an own goal for the socialists because they didn’t look at the history of manufacturing.. or a comparison with that powerhouse of manufacturing, the US.

    Back in the 50s NZ manufacturing was 50% of GDP.. same as the US. In 2012 NZ manufacturing was about 10%.. and so was the US.

    These bozos have missed the revolution in manufacturing.. its way down in the West, way up in Asia and that wont change unless there’s a change in the costs of energy and labour. These days a country like NZ makes its money from exporting services (our biggest export and ahead of second placed dairying).. we do dairying because we are good at it, there’s automation, labour costs are manageable and the product can withstand the effects of a high dollar.

    There are only three things Labour and co need to do to win the next election, a) fix the schools with merit pay, school charters and tapping brilliant university students with incentives to go teaching, b) deal a brutal blow to the RMA and c) clean out the councils to bring them back to core functions and cheap services.

    JC

    • johnbronkhorst

      But then labour would be NATIONAL as this is much of what National are doing now. That incidentally labour and the greens are opposed to!

      • JC

        Ah, but Labourco are in opposition and can afford to be much bolder than the Nats and actually speed these processes up.

        JC

        • johnbronkhorst

          But they DISAGREE with them and are threatening to repeal them, not expand them!

          • JC

            Exactly. Its pretty easy to paint them into the far left, green corner on issues that matter to most NZers.

            JC

      • AngryTory

        Rather, NATIONAL is LABOUR with free school meals, the rail froot loop, and this week’s inanity – free state loans for first-home buyers.

        Why vote Labour when John Key looks so good on TV and enacts all the Labour/Green policies anyway

        (Oh, and how many bludgers thrown off the dole? zero! see, just like Labour).

    • philbest

      But manufacturing is going back up in the USA. One of the reasons for this is that parts of the USA now have the world’s cheapest urban land (due to an absence of “planning” constraints), and low cost natural gas is available. Plus of course workforces that are educated and have low housing costs.

      This is why cities like Houston have grown from 4 million people in 2000 to 5 million in 2010. Atlanta and Austin and Raleigh are growing at a similar rate.

  • cows4me

    But is expansion built on a crisis really expansion? I know that billions will be needed to be spent restoring CHCH but isn’t this a false economy? The money for the rebuild will ultimately come out of tax. I would argue this money is just paying for something we would not have needed to if the earthquake had not happened. The money has to come from somewhere and all well and fine to say manufacturing is expanding, what happens when it’s all over. This is like buying a flash tele at Harvey Norman, interest free for 18 months then cough up. As far as I can figure the manufacturing expansion on the back of disaster is a mirage.

    • johnbronkhorst

      All the expansion I have seen (new factory building projects and expansion of current complexes), is in the NORTH ISLAND!! No where near, or connected to, Christchurch.

  • AngryTory

    What’s most pathetic about all this is that NZ has a real crisis that has only got worse since 2008: the great financial crisis

    Every dollar NZ spends on welfare is borrowed. Every single one.

    Is Key going to fix that? Hell no!

    Why do we need a Labour & Green party when Key’s Nats just adopt all their policies

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