The 2024 ExportNZ DHL Export Barometer, released last week, indicates optimism is on the horizon for New Zealand exporters despite challenging economic conditions over the past year. However, increases to both overall operational costs to businesses as well as supply chain and logistics costs remain a key pressure point.
The report reveals more than half (58 percent) of New Zealand-based exporters expect their overseas orders to increase in 2025. This is a significant increase from last year, when only 42 percent of exporters experienced growth.
However, almost nine out of ten (89 percent) exporters are carrying more costs in their business than they were a year ago. While delays and costs have not reached the same levels as they did in 2021 and 2022, the top barriers for exporters continue to be cost and supply of supply chains and logistics (55 percent), the high cost of doing business in New Zealand (44 percent), and the value of the New Zealand dollar (27 percent).
Selina Deadman, Vice President, Commercial at DHL Express New Zealand says the results are encouraging.
“While costs remain an issue, it’s comforting to see signs of optimism on the horizon with more than half of these exporters expecting an uptick in overseas orders within the year. The research highlights that 83 percent of New Zealand-based exporters are experiencing up to a 49 percent increase in costs.
“In another encouraging sign, Kiwi exporters are exploring new strategic avenues to tackle challenges, including developing new products and services, improving processes to drive productivity, and entering new international markets. To equip exporters with the knowledge and expertise needed to navigate the global marketplace, we’ve developed a comprehensive suite of digital solutions such as My Global Trade Services (myGTS), which helps exporters strategise on where to do business, and On Demand Delivery (ODD) which empowers both the shipper and the recipient to customise their delivery preferences,” says Deadman.
As in previous years, Australia (77 percent), US (52 percent) and Continental Europe (46 percent) were the markets most popular for exporters. However, this year’s Export Barometer highlights a larger range of export markets – 4.6 markets compared to 4.2 in 2023. This is partly the result of more exporters selling into the EU and the UK, following the completion of New Zealand’s Free Trade agreement with those economies.
Joshua Tan, ExportNZ Executive Director praises the industry’s response to the volatile economic and exporting environment.
“The current operating environment is difficult to navigate, with persistent challenges connected with the rising cost of doing business. Despite the many challenges, exporters have expressed optimism and confidence in future growth through the survey, which is very encouraging.
“Given the Government’s goal to double export value within ten years, there are areas where Government support would be valued by exporters – support to help them grow their businesses here in New Zealand and leverage market opportunities overseas. The results from the survey reflect ongoing concerns and potential growth areas that are well known to both the Government and the sector, so now is the time to implement meaningful action,” says Tan.
Josh Tan.
Business Central CEO Simon Arcus says that the results prove what we know already. “Exporters in our region are exceptionally resilient, managing to grow export earnings despite the challenges of a sluggish economy and the damage of Cyclone Gabrielle.”
“I acknowledge the really difficult time that Hawke’s Bay and Gisborne faced in the recent past. It’s a credit to the hard work of businesses in our region that more than half expect their orders to grow,” says Arcus.
Business Central represents exporters across the lower North Island and Nelson-Tasman through our network partner, ExportNZ. Businesses in the region contribute significantly to New Zealand’s export earnings, primarily through manufacturing and agriculture.
39 percent of exporters in the region saw orders increase in the last 12 months. 28 percent saw a decrease, while 28 percent saw them stay the same.
Encouragingly, 54 percent of businesses expect export orders to increase in the next 12 months.
Exporters continue to express optimism despite the current tough economic conditions, and are prepared to meet further challenges over the next year, in the hope that cost and delay difficulties ease and the global trading environment improves.
