Canterbury's manufacturers ready for quake city rebuild

ALAN WOOD
Last updated 05:00 24/01/2014

Share your vision for Christchurch

Share your stories, photos and videos.

Relevant offers

Industries

Government directive on housing problems set for release this week, Nick Smith says Panama Papers fallout speeds up NZ's anti-money laundering legislation NZAS expecting tougher market conditions Job hunters vetting employers' online review websites Fox Glacier helicopter company licence suspended after fatal crash Bluff oysters fly out the door, no matter what price Is VDSL broadband as quick as ultrafast broadband in New Zealand? Sanford CEO Volker Kuntzsch defends onboard monitoring cameras Mitre 10 sold more than 400 dehumidifiers at risk of overheating Property buy-up helps boost Stride Property profit by a third

Canterbury's manufacturing industry remains robust and ready to benefit from the earthquake rebuild, a business leader says.

That is despite Canterbury- Westland region's reading of 49.9 on the BNZ- Performance of Manufacturing Index (PMI) being behind continued growth for New Zealand manufacturers.

For the first time since 2007, national manufacturing expanded every month in 2013, according to latest PMI reading. The national sector has been in expansion for 15 consecutive months.

The index was 56.4 in December, similar to November's 57.0 and puts the quarter average at 56.5. A figure above 50 shows the sector is expanding and below 50 that it is contracting.

Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said there was anecdotal evidence the region's manufacturers were starting to feed into the rebuild and seeing a strengthening position.

"Manufacturers are in pretty good shape in Christchurch and Canterbury. It's not just the rebuild, it is the strong regional economy [including] agribusiness.

The exporting manufacturers . . . are servicing quite niche markets, they are staying strong."

As a result of the earthquakes there continued to be a gradual move by some manufacturers to the southwest part of Christchurch, for example along the new section of southern motorway, though plants would stay in other parts of the city such as Bromley and Woolston.

It was vital that plants such as the Gelita gelatine manufacturing based in Woolston co-existed with the needs of nearby residents, Townsend said. Residents have been concerned about odours from the plant.

"It's a really important business and it's really important they learn to do whatever has to be done to cohabit in that area."

UBS New Zealand senior economist Robin Clements said there had been a trend towards "softening" of expansion in the manufacturing sector in Canterbury/Westland and Otago/Southland.

However, there had been past growth in manufacturing related to the earthquake rebuild and that should continue.

Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content