In its fourth consecutive year, the 2023 Barometer, an annual report presented by DHL and ExportNZ, has been unveiled, and shines a light on the current state of exporting.
Following tumultuous years as a result of the pandemic and economic crises, 2023 is not exempt from challenges.
At a time when many exporters are wanting to “go back to normal”, exporting businesses are facing rising prices they can’t keep up with.
The 2023 ExportNZ DHL Export Barometer revealed these raising costs, alongside availability of transport and logistics has become a main concern for 52 percent of the 250 exporters interviewed for this report.
Despite this dropping from 67 percent from the previous year, this is still majority of the businesses affected by prices.
Forty-four percent say that the high cost of doing business in New Zealand is also another barrier to exporting, alongside the 27 percent who expressed concerns over the value of the New Zealand dollar.
However, exporting is picking up in New Zealand, with 33 percent stating they have had an increase.
ExportNZ and DHL have also reported an eight percent increase in the exporting landscape, up from the four percent recorded in 2022.
Despite the increase, 57 percent of businesses are still dealing with shipping delays.
“The report has highlighted that Kiwi exporters are still working to find their footing in a post-pandemic era,” says Vice President of Operations DHL Express New Zealand, Chitra Shinde.
She adds that though the data is shifting ever so lightly, this is showing signs of an optimistic future with strong and healthy “cross-border trade” which is key in economic recovery.
“Exporters are struggling with the increasing cost of doing business from New Zealand, added to this is the need to remain competitive pricewise in international markets, which is squeezing the margins for New Zealand businesses,” says ExportNZ Executive Director, Joshua Tan.
For Kiwi businesses, Australia is still the number one country for exports, with 75 percent of trading going across the ditch.
Though this has dropped six percent from the previous year, exporting to other countries such as the USA at 44 percent, Europe at 40 percent, the UK at 30 percent and the Pacific at 28 percent show a sign of Kiwi exporters looking further.
With minimal travel restrictions compared to the last few years, Kiwi businesses are shifting back their priorities to other aspects and reducing others such as building an online presence.
Looking at the next year ahead, many of the 250 interviewed are positive about the industry’s future.