Auckland, New Zealand, 23 October 2024: The 2024 ExportNZ DHL Export Barometer, released today, indicates optimism is on the horizon for New Zealand exporters despite challenging economic conditions over the past year. However, increases in overall operational costs to businesses, as well as supply chain and logistics costs, remain a key pressure point.
The report reveals that more than half (58%) of New Zealand-based exporters expect their overseas orders to increase in 2025. This is a significant increase from last year, when only 42% of exporters experienced growth.
However, almost nine out of ten (89%) exporters carry more costs in their business than a year ago. While delays and costs observed in 2024 have not reached the same levels as they did in 2021 and 2022, the top barriers for exporters continue to be the cost supply chains and logistics (55%), the high cost of doing business in New Zealand (44%), and the value of the New Zealand dollar (27%).
Selina Deadman, Vice President, Commercial at DHL Express New Zealand said 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% of New Zealand-based exporters are experiencing up to a 49% increase in costs."
“Another encouraging sign is that 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 strategize on where to do businesses, and On Demand Delivery (ODD), which empowers both the shipper and the recipient to customize their delivery preferences,” said Deadman.
As in previous years, the most popular markets for exporters are Australia (77%), U.S. (52%) and Continental Europe (46%). However, this year’s Export Barometer also 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 Europe and the U.K., 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 challenges, exporters have expressed enthusiasm 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 exporters would value Government support. This includes providing them with 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,” said Tan.
Exporters continue to express optimism despite the current tough economic conditions and are prepared to meet further challenges over the next year, hoping that cost and delay difficulties will ease and the global trading environment will improve.
