New Zealand inflation reached 7.3% in the last quarter, a higher-than-expected result. Central banks around the world are rapidly raising interest rates to regain control of inflation, which is spiralling as demand outstrips supply amid pandemic bottlenecks and the war in Ukraine. The issues driving the 7.3% inflation rate in New Zealand are the same as the issues driving inflation across the globe.
- Prices for construction of new houses were up 4.5% for the quarter and 18% for the year
- Gasoline prices rose 6.2% in the quarter and 32% for the year
- Food prices gained 1.3% in the quarter and 6.5% for the year
- Tradable prices increased 1.9% from the previous quarter and 8.7% for the year
- Non-tradable prices rose 1.4% from the previous quarter and 6.3% from a year earlier
- Consumer prices excluding food, fuel and energy rose 6.1% from a year earlier.
The marine sector in NZ as in Australia has been experiencing many supply-chain issues, freight costs, higher labour costs, and also higher demand, which have pushed up costs for many industry sectors especially construction.
BORDERS OPENED 1 AUGUST
The New Zealand marine sector has spent the last 2 years perfecting their global offering and with New Zealand’s sea and air borders that reopened on 1 August they are looking forward to inviting superyacht owners and crew back to one of the most desirable locations in the world.
Foreign flagged yachts visiting New Zealand benefit from a superyacht-friendly framework that includes newly completed refit facilities, a 24 month Temporary Import Entry (TIE), and refit services and supplies which are exempt from New Zealand’s 15 per cent goods and services tax (GST).
Peter Busfield, CEO of Marine NZ commented; “The NZ economy is still vibrant despite the inflation rate, however the pressures felt in most countries are being felt here. Our government has been very restrictive on immigration and as such this has added to previous covid restraints, and we are very short of people. With Inflation at 7.3%, mortgage interest rates back at 5% and house values dropping 10% ytd, there is evidence that the boom years of 2020 to 2022 may soon be over. “
Peter continued, “Having said that with the sea border opening on 1st August 2022 we have a lot of superyachts and cruising yachts intending to visit NZ. With what is going on in Europe many yacht owners are looking to escape to the beautiful South Pacific and NZ of course -so that is a positive for us.”
Skilled labour shortages are a world wide phenomenon nowadays which has led to New Zealand’s world leading apprenticeship system booming. New Zealand has a global reputation for the quality of their training and the work ethic and skills of New Zealand trades people. Peter Busfield advised, “the NZ boatbuilding apprenticeship program is breaking records with now over 700 apprentices registered in 270 New Zealand companies and it is great to see many graduates of the program in their 30’s now running/owning marine industry companies -the future of the NZ marine industry is in good hands.”
There are some exciting developments coming out of New Zealand which continues to put a spotlight on the NZ marine sector. Two companies that have come to our particular attention are TruDesign and Zerojet.
TruDesign is an innovative New Zealand manufacturer specialising in the design, tooling, manufacture and testing of high-quality marine composite valves and associated products. As a multiple Dame Award winner Trudesign is a key global player and with new innovations recently launched could possibly be set to yet again to enter the prestigious 2022 Dame awards which are announced at METS in November.
Zerojet, based in Auckland NZ are making their mark and ready to make inroads into the global marine market and are seeing huge demand in Europe and the USA for their boats. ZeroJet is the first jet propulsion system to be designed specifically for an electric motor, delivering the perfect balance of performance and runtime. Zerojet’s mission is to eliminate the need for combustion engines on small watercraft. No pollution, no noise. Just you, the ocean, and a rechargeable battery. The super low profile of the jet system allows it to beach easily and skim over shallow reef ecosystems. Optional drop-down wheels make for easy manoeuvring on the beach. Talking to CEO of Zerojet, Bex Rempel about the issues that have affected Zerojet, she said; “ Our biggest issues over the past 2 years have been the covid lockdowns in NZ, supply chain disruptions and shipping delays. These have all been challenging but these issues are not unique to us.”
Bex went on to say; “We see a future where there’s no need for small combustion engines. We care about the ocean and most people who spend time on yachts and boats feel the same! We are proud to be pushing technology forward which can make an impact – almost all our customers say that they have electrified everything in their life except their yacht and tender. These are the last things which they haven’t yet found a good solution for – until now.”
Another iconic New Zealand manufacturer continuing to make inroads into global markets is Hamilton Jet who are expanding their Christchurch factory operation as global business booms. There is no doubt despite the current inflation and the issues affecting all manufacturers, New Zealand businesses remain resilient and clearly looking forward to being back in person on the world stage and having their borders finally open.