Staff easier to find now, employers survey shows

Job cutting by some manufacturers has reduced the pressure of finding skilled employees, says the Canterbury Manufacturers Association.

Association chief executive John Walley said yesterday the latest survey, based on a sample of manufacturers with annual sales totalling $613 million, showed staff numbers for July had fallen by 12 per cent compared with last year, which meant concerns about finding appropriate staff were also receding.

The association represents about 35 per cent of manufacturing employment in Christchurch.

"It [finding skilled employees] has been getting better the past year and now people are pretty relaxed about it," Walley said.

"There are pockets of difficulty with specific skills but, generally, the pressure across the sector is lower."

Some employers had also invested in new equipment, replacing the need for certain jobs.

However, the trend of staff losses was stabilising and increased activity in product development was seen as a positive sign.

"Members who operate early in supply chains indicate a significant amount of activity in the development and introduction of new product and this activity is an early indicator of growth to come," Walley said.

This increased activity should be felt within the next year.

Overall, July sales were up marginally by 0.4 per cent on last year, with domestic sales up 18 per cent and exports down 12 per cent.

The picture for exports, which had shown strong growth in last month's survey, was affected by staff cutbacks earlier in the year and comparison to a good month last year.

"As soon as you shed staff, you do less, so you don't sell as much," Walley said.

Net confidence of negative 14 per cent was down slightly on last month but still well ahead of negative 29 per cent and negative 42 per cent recorded in April and May.

"We haven't seen much of a change ... but certainly in talking to people they're a bit more bullish than their responses suggest," Walley said.

Respondents were generally happy with the dollar trading between US60c and US64c, but were concerned about the price of oil, and transport and freight costs.

July outlook

* Net confidence: -14 per cent.
* Sales up 0.4 per cent on last year.
* Staff numbers down 12 per cent.
* More product development a positive sign.