Canterbury production rise tipped

Press, 28 March 1980, Page 4

Canterbury production rise tipped

Canterbury manufacturers expect to expand production and sales by about 16 per cent on average this year, according to a survey of 84 members of the Canterbury Manufacturers’ Association representing about a quarter of manufacturing in the province.

About half of the companies planned to expand in Canterbury in the next few years, investing a total of more than $lB million/said the director of the association (Mr I. D. Howell). The high-growth area appeared to be mainly in industries not closely tied to construction, where little growth was foreseen. One company planned to invest $7.5 million, while the smallest investment was $lO,OOO. The investments covered a wide range of industries, including glass, footwear, rubber products, food, clothing, furniture, timber products, engineering, electrical goods and electronis. In many cases the expansion would be in lines where no heavy freight costs were involved for the finished product.

• In another section of the survey five companies had said that because of freight costs they had moved plant valued at nearly $600,000 to

Auckland in recent years resulting in a loss ,to Christchurch of just over $4.5 million in production a year. Other manufacturers had closed down in Canterbury or had concentrated expansion on new factories in the North Island.

The survey, made in December and January, showed that 35 per cent of the increased production this year would be exported. One of the effects of the upturn in production was on employment. The survey showed that employment had risen by 5.1 per cent in Canterbury in the year to last November, compared with 2,8 per cent nationally.

Production in the same year for the surveyed firms was valued at $283.2 million. The same firms were budgeting for production valued at $327.3 million this year. The companies were expected to export goods valued at $37.9 million, compared wiith $22.9 million in the year to last November.