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Gian Businesses Index & Contractors in Levin and wellington NZ
 
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WHY NZ BUSINESS, MANUFACTURING & FACTORIES

HAVE SURVIVAL PROBLEMS & MOVING TO OFFSHORE

 

 

Well paying 39% tax rate to have a company + accountant and ACC levies rising wouldn't you want to leave?? I did & enjoy a nice 5% tax rate. NZ is at the end of the world and the cost to send raw materials into NZ is too expensive.

 

   

NZ companies are on the move bigtime!!!!!

WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ:

30% of all containers in and out of NZ are empty as its at the end of the road (sea) & the main shipping companies do not come here because of this reason. Trucking companies like Mainfreight use owner drivers and they charge up to $2.79 per km to take your cargo to wherever (plus charge the same for the empty return leg) and the shipping cost alone out of NZ is much dearer than the leg in . eg to send a container from Bangkok to the UK which is further than NZ is $500 cheaper by sea than that same container to NZ. Owner drivers have to pay a fee to the Company then pay themselves, the tax and RUC charges as well so see why transport costs are so dear & set to rise even more. If a company has its own trucks they are up for maintenance + salaries + these charges. The landing costs in NZ are so expensive for wharf charges & slow in comparison--can take up to 2 weeks to clear a container as MAF are slow and companies do not care. Next is salaries: companies who employ workers cannot pay the high salaries for the returns they receive in production as the Government then levy their taxes + ACC & the power boards & telecom charge exhorbitant rates for power & phone commercial rate charges that it does not make it worth while to have a manufacturing company in NZ. Then you have the health and safety issues & the Unions all wanting levies and then you have a Company struggling to survive. This is the norm in NZ and will remain so as it is not worth trying to set up any manufacturing business in NZ when there is no incentive for the business owner.

The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense

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"You won't regret moving to Thailand believe mef"

[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money?????

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