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As the world continues to rapidly progress and become more interconnected, New Zealand exporters will inevitably face various obstacles in the coming years. In 2023, it is expected that there will be a number of challenges that New Zealand export businesses will need to prepare for in order to succeed in the global market. In addition to these challenges, these businesses will also need to brace for a number of external factors that could impact their operations in 2023. For example, the ongoing global trade tensions and protectionist policies being implemented by some countries could create export constraints and barriers that make it more difficult for New Zealand businesses to access certain markets. In order to navigate these challenges, businesses in New Zealand will need to have a clear understanding of the regulatory and compliance requirements of each market they are exporting their goods to and ensure that they are able to meet these requirements in a timely and cost-effective manner.
In this article, we will explore some of these obstacles and provide some insights into how export businesses in New Zealand can prepare for them as they look to expand their presence and take on the competition from all parts of the world. Here are some of the key business obstacles that exporters in New Zealand must take into consideration as they plan for 2023 and beyond:
In addition to the rising costs associated with shipping and logistics, New Zealand businesses also need to be prepared for higher costs when doing business in New Zealand, Oceania, and beyond, as well as the value of the New Zealand dollar. With warnings of an impending recession and international currency exchange rates in a constant state of flux, import and export businesses are likely to face higher costs when dealing with customers or suppliers in other countries. In addition, with the cost of labour, raw materials, and utilities continuing to rise, businesses are starting to see their once-healthy profit margins eroding.
All these create additional challenges for export businesses, and in order to stay competitive, business owners will need to find ways to reduce costs. Some ways to counter these issues include the sourcing of cheaper raw materials from overseas suppliers, the implementation of automated processes in their operations, and working with a reliable logistics partner to improve supply chain efficiency.
Another key challenge that export and import businesses will face is a labour shortage. With an ageing population and a tight employment market, businesses are finding it increasingly difficult to source skilled and experienced workers at competitive rates, as well as retain them in the long run. As the number of skilled workers continues to dwindle here in New Zealand, businesses are finding it harder to maintain their competitive advantage and be able to scale up their import and export operations quickly during periods of high demand.
To counter this issue, businesses need to explore more efficient ways of running their operations and make use of technology such as automation and artificial intelligence to help them remain competitive. Additionally, businesses should focus on developing a strong internal culture and invest in employee training to ensure that their staff are well-equipped to face the challenges ahead. Businesses should also consider outsourcing certain operations to countries with cheaper labour costs.
Another obstacle businesses in New Zealand need to be prepared for is an increase in global competition. With the world becoming more interconnected and companies from all around the globe competing for business opportunities, New Zealand export businesses are likely to face stiffer competition from domestic, regional, as well as international players.
As these players are also shipping their products to various overseas markets, in order to remain competitive and stand out from the competition, these businesses will need to ensure that their products and services are competitively priced and of high quality. Additionally, they will need to focus on developing their brand identity and establish stronger working relationships with the domestic and international customers that they are exporting to. This will help them gain a competitive edge to surmount any challenges they might face in 2023 and beyond.
Finally, finding partners and agents in new destinations can be a significant challenge for export businesses, especially for those companies that are small to medium-sized. These businesses may not have the resources or connections to navigate unfamiliar marketplaces, which can make it difficult to establish relationships with potential partners and agents. Furthermore, language and cultural barriers can also create challenges when it comes to effectively communicating and building trust with potential partners.
This can make it difficult to secure partnerships and representation in new destinations for the exporting of goods, and this can limit growth opportunities. To overcome this obstacle in 2023, it is essential for New Zealand export businesses to take a strategic approach to building relationships in new destinations. This includes establishing a strong network of contacts, researching potential partners and agents thoroughly, as well as developing a clear and effective communication strategy. Additionally, hiring a local representative or agent can be a valuable strategy for navigating the market. By taking these steps, businesses can be better prepared to overcome this obstacle and expand their reach to new destinations.
2023 promises to be an exciting year for businesses exporting their goods from New Zealand. With the right planning, preparation, and strategies in place, businesses can ensure that they are well-positioned to take advantage of the opportunities available and overcome any key challenges that may arise. DHL Express can also provide additional support in overcoming these obstacles. As one of the leading providers of export and import logistics services here in New Zealand, DHL Express is well-equipped to help export businesses manage the complexities of international trade and succeed in the global marketplace. Whether it is finding ways to navigate complex regulatory requirements or manage supply chain disruptions, our global network, a wide range of services, and an experienced team of logistics experts can help you achieve your import and export business goals.
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