manufacturing crisis

How about that manufacturing crisis?

Remember the manufacturing crisis that the Labour party and assorted other opposition parties promulgated?

You know that the sector that was in total decay and was going to fail dooming us to a life of low wage servitude and indentured labour?

Yeah…that crisis…remember?

Manufacturers are flat out and are crying out for more workers, with a survey showing employment activity at record levels.

The latest BNZ- Business NZ Performance of Manufacturing Index showed the sector was expanding at its fastest pace this year in October.

The seasonally adjusted PMI for October was 59.3, up 0.8 on September. An index above 50 indicates the sector is growing and below 50 it is shrinking.

The PMI employment index hit 57.5 points in October, the highest level on record since the survey began in 2002.

BNZ senior economist Doug Steel said the labour market was getting stronger with annual employment growth of 3.2 per cent and the unemployment rate falling in the year to September.

“Today’s PMI results suggest more improvement is likely in the final quarter of 2014.” ? Read more »

Housing will all be fixed soon, Labour has started calling it a crisis

Everything in the past 6 years that Labour has labelled a crisis turned out not to be.

Labour exclaimed that there was a manufacturing crisis, yet the only crisis was in their planned pr to talk down a sector that has and is recovering well from the global financial crisis.

They declared a crisis in the brain drain of people leaving for Australia…and lo and behold the crisis evaporated and is now causing what Labour claims is the next crisis…in housing.

Adam Bennett reports:

Migration pressures which Labour says are contributing to a housing crisis were worse under Helen Clark’s Government, Prime Minister John Key said yesterday as yet another report emphasised the high price of homes in this country.

The political battle over the high cost of housing was further fuelled when Treasury warned in last week’s Budget that surging migration numbers could place even further pressure on the market. Treasury expects annual net inward migration to peak at 38,000 this year but said it could be as high as 41,500. ? Read more »

A bigger fail than the #manban?

Given the dire situation of Labour’s leadership and state of the party at the moment, they have been needing nothing short of a miracle to turn the polls around from the reverse momentum they have been currently experiencing under the leadership of David Cunliffe. One thing that I have seen echoing from this blog to social media to talkback radio is the apparent lack of policy, which almost seems to be replaced entirely by attack politics. Two days ago Labour leader David Cunliffe released a policy that they probably thought was a ‘game changer’, unfortunately it was exposed to have more holes than a block of swiss cheese outside a rat hole.

Stuart Nash yesterday went on the offensive explaining away as to why the policy was a winner, as he responded to a reader:

I have also worked in the forestry and wood processing industry, and it is an example of a sector of the NZ economy that has so underperformed as a result of massive underinvestment in value-added processing. You say you know what the problems are, but you don’t list any… I am suspecting that you don’t really know.

I would have thought the problems were pretty obvious to someone that has worked in the forestry and wood processing industry. For the last 10 – 15 years sawmills around the country have been closing down. Why is that? It is because the overseas market wants raw logs. You meet that market, or you lose it. They don’t want our sawn timber, and Labour’s policy will squeeze New Zealand out of the international market resulting in even bigger unemployment. There is only so much sawn timber the local market will absorb, ?and no half thought out idea of only constructing buildings under four storeys out of timber or the Christchurch rebuild will save this policy from failure. The silly part is it would be still optional to builders/construction firms as to the materials they used as it wouldn’t be implemented by force, in effect making the policy a dead duck and a waste of time. To suggest ?that part of the economy is under performing as a result of lack of investment is foolhardy: the demand isn’t there, so neither is the investment. If private investment won’t do it, that suggests the market isn’t there and it is bad business. You know, like subsidising large car manufacturers.

Nashy didn’t much like Mike Hoskings comments on it either,

If Hosking’s commentary was based on a reasoned analysis of Labour’s forestry policy then he would be taken seriously, but as per usual, he doesn’t let the truth get in the way of misinformed bile. He is articulate and intelligent, but he absolutely has an ideological axe to grind. That’s what makes him dangerous.

And it was pretty obvious as to why he took exception, as Hosking meticulously picked the policy to pieces like a vulture to expose the bare bones of what an incompetent idea it would be.

The other significant problem was that on one hand you have CTU President Helen Kelly screaming from her office that forestry death rates are too high, the government is doing nothing to fix it, while on the other hand you have David Cunliffe wanting to create more jobs to get people off welfare and into one of the most dangerous jobs in the world. How many lazy slackers are going to want to do hard forestry work, let alone avoid getting tangled with a chainsaw or have their block knocked off by a flying log due to inattention, being stoned or hungover from the night before. It is not the kind of job that accommodates ?slackers, halfwits, poor time keepers ?or self inflicted long weekends.

What does Helen have to say about it? Nothing. Not a peep, not a whisper, not a murmur.

It is much like the manufactured ‘manufacturing crisis’, this policy simply does nothing but provide bad solutions to non existent problems. ?If this policy was David Cunliffes big ‘game changer’ policy, he’s in for a rough campaign. Wait for the next round of musical chairs on the Labour front bench.

If Labour got in and implemented this policy the forest owners and logging contractors in Russia, Washington State and Oregon will be laughing all the way from the side of the hill to the port with double the capacity of raw logs for export.

The crisis continues

via Idealog

via Idealog

When will this damn economic/manufacturing crisis end?

New Zealand manufacturing activity expanded for an 18th straight month in February with signs a buoyant economy is creating jobs.

The BNZ-BusinessNZ seasonally adjusted performance of manufacturing index edged lower to 56.2 in February from an upwardly revised 56.3 in January, and 55.4 in February last year. A reading above 50 indicates expansion in the sector. ? Read more »

More good news

The Green Taliban and Labour parties just can’t catch a break. ?Their narative for the election is that nasty John Key and his National meanies don’t know how to run the economy properly.

Yeah, nah.

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%.

Meat and dairy product manufacturing sales were up 15%.

“The large meat and dairy volume increase is also seen in export volume rises for dairy and meat products,” industry and labour statistics manager Blair Cardno said. ? Read more »

What sector crisis will Labour choose next…so it can recover too

Labour declared that there was a manufacturing crisis in New Zealand, they encouraged the other opposition parties to hold an inquiry into the manufactured manufacturing crisis and on the very day that they released their report which unsurprisingly said there was a crisis new statistics were released that showed the sector recovering and recovering well.

Business NZ has announced:

New Zealand?s manufacturing sector ended the year on a healthy note, and the first time since 2007 that every month recorded expansion in activity, according to the latest?BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 56.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). The sector has now been in expansion for 15 consecutive months, with an average PMI value of 56.0 over the year.

BusinessNZ?s executive director for manufacturing Catherine Beard said that New Zealand?s manufacturing scene has proven to be one of the standout performers?when compared with other countries during 2013. ? Read more »

Crisis? What Crisis?

James Weir at Stuff reports that the Manufacturing Crisis is getting totally out of hand…

…for Labour and the Greens, that is

Manufacturing is on a strong run, picking up more steam in October after expanding every month for almost a year, a survey shows.

The strength in manufacturing has been led by a high level of new orders and suggests the overall economy could grow faster than expected later this year.

The latest BNZ-BusinessNZ survey for October shows the seasonally adjusted performance of manufacturing index was 55.7, up 1.5 points from September. An index above 50 indicates the sector is expanding and below 50 it is contracting.

The sector has been expanding for 11 months in a row, and the result for last month was the best for any October since 2007, before the global financial crisis.


To the life boats! ? Read more »

Crisis? What crisis?

The Green/Labour/Winston First/Mana bloc decided there was a crisis in manufacturing, they held an “inquiry” and produced a report the same day that figures showed that manufacturing wasn’t in crisis.In short they manufactured a manufacturing crisis.

Now more figures show that manufacturing is far from in crisis and is in fact expanding significantly.

The high and medium-high technology manufacturing sectors have shown growth and resilience despite global economic challenges, a new Government report shows.

The High and Medium-High Technology Manufacturing Sectors Report?was today released in Christchurch by Economic Development Minister Steven Joyce.

High-tech manufacturing includes pharmaceuticals, aircraft manufacture, professional and scientific equipment manufacturing, and computer and electronic manufacturing. It is a small but fast-growing part of our manufacturing sector counting for 0.7 per cent of GDP and 3 per cent of our total exports.? Read more »