24 August 2009
Tim Gibson, Chief Executive, speech to New Zealand Manufacturers and Employers’ Association, August 2009.
Today I’m going to talk to you about the challenges of doing business internationally – and the role of New Zealand Trade and Enterprise in supporting New Zealand companies doing successful international business in the current climate.
Specifically I will explain why and how NZTE is focusing its resources on increasing the number and size of our businesses that are successful internationally – and ensuring all of New Zealand shares in their success.
Is it about picking winners? Well it’s certainly not about picking losers.
Joking aside, we have limited resources and we do need to focus our efforts where we know we can make the biggest difference for New Zealand business and get the greatest return for New Zealand on the Government’s investment.
After six years in operation, we have a good idea of what will make the biggest difference and we know that intensive engagement with established exporters achieves results – for the business and for New Zealand.
A tough environment for New Zealand business
The current economic downturn has forced, and will continue to force, change on New Zealand businesses.
The natural response to that is for businesses to look inward – to hunker down, to concentrate on cutting costs, to focus on managing credit and debt risks – all good things to do of course.
But there’s a danger of that mindset taking over – where opportunities are overlooked because too much time and energy is being spent dealing with the challenges of the moment.
Rain or shine, more New Zealand businesses need to look outward – beyond our shores to the multitude of opportunities awaiting our globally ambitious businesses.
Our economic future lies with those businesses that are prepared to differentiate to be competitive.
The current recession is a game-changing event for businesses worldwide. The certainties of the last few years – easy credit, rising asset values and strong global demand for products and services – have gone.
All businesses need to adjust to this reality, but clever and courageous ones are also spotting new gaps opening up in their opponents’ defences and making a play for them.
It’s our job at NZTE to support these clever New Zealand companies to grow their business internationally – even, and perhaps especially, when times are tough.
It’s also our job to look at our own business with this in mind – where are the opportunities for NZTE to make the biggest difference and get the greatest return on our investment? How do we adjust our own approach to ensure we continue to focus on our core business?
The Government’s Economic Growth Agenda
Our work is underpinned by the Government’s focus on increasing productivity, innovation and international performance, and support for industries that are internationally competitive.
The Government has aggressive goals for improving New Zealand productivity and economic growth.
Their aspiration is to raise exports from the current level of 30 percent of GDP to 40 percent and income parity with Australia by 2025.
This means New Zealand needs:
- more New Zealand firms successfully exporting and investing offshore
- high-value activity being retained in New Zealand through high-value jobs, retained profits, intellectual property etc.
Building the number and scale of export businesses is crucial if we are to grow our economy.
The role of NZTE in delivering on the Government’s Economic Growth Agenda
NZTE’s role in helping meet the Government’s goals is:
- to focus support on businesses with the realistic potential to achieve international scale and competitiveness
- and the ability to deliver economic benefits to New Zealand.
This means NZTE needs to work with the right businesses, at the right time in their life cycle and in the best ways possible.
This focus has moulded our evolution – from offering traditional trade promotion assistance – to becoming an international award-winning agency that enters into partnerships with firms to provide services throughout their life.
