Latest / Best of Business / Alan McDonald: EMA Head of Advocacy, Finance and Strategy on the increased revenue and profitability in the manufacturing sector

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Alan McDonald: EMA Head of Advocacy, Finance and Strategy on the increased revenue and profitability in the manufacturing sector · Best of Business

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  Speaker 1: You're listening to a podcast from newstalk ZEDB. Follow this
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  Speaker 2: More good news on the economy in our manufacturing sector.
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  Speaker 2: So we see revenue and profitability is up for the
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  Speaker 2: first quarter of this year. So we've got revenue up
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  Speaker 2: seven and a half percent, profitability up thirty Food and
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  Speaker 2: beverage and building industry, they're the big winners. EMA's head
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  Speaker 2: of Advocacy, Finance and Strategy, Ellen McDonald is back with this. Ellen,
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  Speaker 2: very good morning to you.
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  Speaker 3: Good morning, my king. Congrats on another award.
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  Speaker 2: You're very kind, Thank you very much. So when I
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  Speaker 2: look at the PMI as I do, is that reflective
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  Speaker 2: of what's actually going on along with things like the
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  Speaker 2: confidence measures that seem to be all over the place.
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  Speaker 3: Yeah, I think that that corner that would keep turning, well,
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  Speaker 3: it's still some way off. All the indicators are heading
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  Speaker 3: in the right direction, and this latest survey kind of
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  Speaker 3: it just reinforces the trend. I think that you're seeing
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  Speaker 3: in the PMI and you're seeing in some of the
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  Speaker 3: other confidence indicators, which are all saying that a bit
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  Speaker 3: further down the track things go looking much better. But
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  Speaker 3: I think the key to that is a bit further
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  Speaker 3: down the track.
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  Speaker 2: Okay, do we have a trend at this point because
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  Speaker 2: I know this PMI is up at least four months
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  Speaker 2: in a row, isn't it.
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  Speaker 3: Yeah, coming off a low base unfortunately, but I think
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  Speaker 3: that the confidence is returning. It's still pretty patchy, and
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  Speaker 3: I think in the latest survey at highlights, for example,
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  Speaker 3: the food and beverage industry, and when you look at
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  Speaker 3: say that, you know Apple and Peer returns had a
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  Speaker 3: billion for the first time, dairy record prices, red meat
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  Speaker 3: going strongly, zespry with a record crop and high prices
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  Speaker 3: as well, you would expect some confidence in that sector.
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  Speaker 3: It also happened to be at a celebration of the
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  Speaker 3: space industry earlier. We can Peterbecks reporting a six hundred
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  Speaker 3: percent boost in revenue year on year. It's amazing, amazing number.
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  Speaker 2: It's good to be able to talk in a country
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  Speaker 2: of five million people of the space industry. A couple
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  Speaker 2: of numbers at you. Beverage manufacturing revenue doubled to two
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  Speaker 2: hundred and forty five thousand for the quarter of food
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  Speaker 2: manufacturing up one hundred and thirteen percent. So what you're
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  Speaker 2: saying is, yeah, those headline numbers look good, but they're
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  Speaker 2: off low basis. Is that what you're saying.
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  Speaker 3: And I'm not quite sure on the sample size because
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  Speaker 3: that particular study has done over three countries and fifteen
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  Speaker 3: hundred businesses. So I think it's more important that it
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  Speaker 3: reinforces the tread night rather than the content.
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  Speaker 2: Because here's the text and this will give you some context.
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  Speaker 2: Morning Mike. You're saying manufacturing New Zealand's booming. What drugs
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  Speaker 2: are you taking managing a sizeable manufacturing plant which is
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  Speaker 2: one of five in New Zealand. I can assure you
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  Speaker 2: it's in survival mode. It's not likely to end well
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  Speaker 2: for several hundred people at one plant. Is that real
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  Speaker 2: or not?
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  Speaker 3: That's very real, And that's what we're seeing on the
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  Speaker 3: ground still is that, as I said earlier, it's still
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  Speaker 3: quite patchy. And I know a lot of our manufacturers
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  Speaker 3: are keeping a very wary eye on the energy pricing
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  Speaker 3: because another winter with those massive spikes. Now we've gone
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  Speaker 3: from energy pricing it was internationally competitive to actually shutting
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  Speaker 3: our own businesses, and when we're paying large manufacturers to
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  Speaker 3: feed energy back into the system instead of actually making stuff,
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  Speaker 3: so they're feeding back into the system to keep other
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  Speaker 3: people afloat. That's says things are badly wrongly.
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  Speaker 2: I don't want to make it too political, but I
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  Speaker 2: mean ty was in the news for that very reason
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  Speaker 2: this week. But when you cut off exploration of gas
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  Speaker 2: as they did as a prevent government did, I mean
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  Speaker 2: that's bought. It's not only negligent, but it's treasonous, isn't it,
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  Speaker 2: Because you must know that this is the outcome when
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  Speaker 2: are going to live through.
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  Speaker 3: Well, no economies cope with sudden shocks like that or
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  Speaker 3: any sudden shock very well. And you've only got to
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  Speaker 3: look at the uncertainty that the White House is creating
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  Speaker 3: around the world to see that.
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  Speaker 2: All right, mate, you have a good weekend. Ppreciator Alan McDonald,
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  Speaker 2: the EMA head of Advocacy, Finance and Strategy. Do you
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  Speaker 2: think anyone's going to Holdhipkins to account for that because
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  Speaker 2: he's the last one left? Of course, you would ask
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  Speaker 2: Syndra if she could be bothered leaving Boston, or you'd
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  Speaker 2: ask Granted, Bee came out of his cloistered and environs
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  Speaker 2: of a tago, but Hipkins is the last one left
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  Speaker 2: standing watching the coal pile into the country and Ty
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  Speaker 2: was in the news. Didn't get covered enough. This week,
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  Speaker 2: Ty was allowed to go back and do regular business
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  Speaker 2: because they couldn't do regular business because the deal they
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  Speaker 2: have with Meridian means they have to cut hail their
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  Speaker 2: production because we don't have enough power to run this country.
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