Summit Woolspinners, one of Oamaru’s largest employers, is moving to a nine day fortnight in an effort to safeguard jobs in the face of declining orders for carpet yarn.
The March manufacturing index shows they’re not the only Otago manufacturer facing tough times.
Otago-Southland manufacturers are suffering the worst of any in the country by a wide margin, according to the latest BNZ-Business New Zealand performance of manufacturing index (PMI).
The Otago-Southland index slipped to 37.6 points in March – its lowest recorded reading.
A reading above 50 shows manufacturing activity is expanding and below 50 shows a contraction.
In March last year, the regional index was 46.3.
Nationwide, the index indicated some ongoing problems in the country’s manufacturing sector.
The seasonally adjusted national PMI increased 1.8 points in March from February to 40.7, but it is still the third lowest since the survey began.
Meanwhile, the consent process grinds on for Holicm NZ which has applied to build a $400 million cement plant near Weston.
If it goes ahead the plant would provide about 120 fulltime jobs.
Fortunately for Lambcut’s beloved Southland, much more of its wealth comes from agriculture than from manufacturing. Anecdotal reports from home indicate that the recession isn’t really hitting most folks at a personal level. Lambcut hopes it stays that way.