Exporting pays dividends for Kiwi firms

JAZIAL CROSSLEY
Last updated 05:00 25/01/2013

Relevant offers

Industries

Migrant influx will be housed, says Key TSB Bank confirms ongoing talks with shaky Solid Energy Public servants could lose out on MP pay change: Andrew Little Rocket Lab teams with US giant Lockheed Trademark fight between Mr Zogs Sexwax, Zoggs ends Blue Chip's Mark Bryers makes last trip to try to lift bankruptcy Law to change on MP pay rises Immigration may boost house prices: Treasury TVNZ sees $1 million dip in interim profit Solid Energy lenders could see more losses

Kiwi companies that export had a bigger jump in revenue last year than those trading locally.

According to a study by global workplace provider Regus, 65 per cent of New Zealand businesses exporting products to overseas markets saw revenues rise during 2012, above the international average of 59 per cent.

However, only 55 per cent of companies operating locally in New Zealand had an increase in revenue. That was still higher than the international average of 47 per cent.

Wellington manufacturer of sheet metal and various components Metco Engineering's export revenue rose around 20 per cent last year.

Managing director Paul Jessup said the increase in turnover was because of larger volumes of sales.

"It's a bigger market, exporting, isn't it?

'We export, but not directly - our customers export, so we're selling components to them that they're exporting.

"We've seen a big jump with Japan over the last three months particularly with hardware for windows such as stays, and Australia mainly with the building sector and commercial fitouts."

John Henderson, Asia-Pacific director of Regus, which counts companies such as Google and GlaxoSmithKline among its customers, said it was aware of many obstacles Kiwi businesses faced when setting up an international presence, "such as paperwork and property costs and the difficulties in establishing an image and brand in another country".

While revenues rose more for exporters, so did profits.

Again, 46 per cent of Kiwi export companies reported a rise in profits, compared with only 42 per cent of locally focused companies.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content