Newsletter

NZEC Newsletter - March 2021


Kia ora from the NZEC team,

We hope you have had a positive start to 2021.
 
In our first newsletter for the new year we bring you a new case study based on how NZEC contract bonds can help exporters gain security for contracts, some exporting information and resources that we created in collaboration with NZTE, our latest staff update and the teams planned travel (pending COVID-19 alert levels).


Manco Digging Deep in Sydney

Engineering firm Manco secured a significant contract to custom-design and build machines capable of installing rail lines by remote control along 31 kms of tunnels under Sydney Harbour, CBD and inner suburbs.  Read here how NZEC and BNZ helped Manco provide advance payment and performance bonds to secure this contract

Engineering firm Manco secured a significant contract to custom-design and build machines capable of installing rail lines by remote control along 31 kms of tunnels under Sydney Harbour, CBD and inner suburbs.  Read here how NZEC and BNZ helped Manco provide advance payment and performance bonds to secure this contract.

Manco machinery

Trading with confidence during 2021

Since 1st April last year, NZEC has covered export sales into 57 different countries around the globe.  A lot of this support has provided confidence to exporters via our top-up cover, trade credit insurance in partnership with private insurers.  To date we have had no claims lodged in respect to a foreign buyer defaulting on its payments.
 
The chart below (prepared by the insurer Coface with additional information sourced by European Union’s statistics office) provides a very interesting comparison of global corporate insolvencies between 2019 and 2020. 

Graph

The chart shows that the number of corporate insolvencies declined during 2020 across many countries.  This may be attributed to Government business support measures i.e. via guaranteed loan facilities, concessional lending, and amendments to insolvency procedures. 
 
The challenge for NZ exporters (and their insurers) is understanding to what degree their overseas buyers are being sustained by these support measures, and how they will survive once these measures expire later in 2021.  It is this uncertainty which trade credit insurance can help mitigate.


MyNZTE - Exporting Resources

Working with NZTE, we have developed two short videos for companies new to exporting:
Financial checklist for new exporters
Protecting your export business against losses
 
These videos are also available on myNZTE, which is a portal to help companies access relevant information and resources for exporting. If you wish to register click here.  https://my.nzte.govt.nz/


Things that may be of interest

MFAT Market Reports: The Ministry of Foreign Affairs and Trade publishes regular reports on topics of interest to the New Zealand export community. The latest reports from February 21 include:

  • Global Economic and Trade Update for New Zealand Businesses
  • Japan: Economy Update
  • Philippines – annual update
  • Netherlands – report on Dutch economy
  • France – Trade and economic update
  • Thailand – economic update

See full list here..

Managing Risk in the new world - Nelson Tasman Chamber of Commerce 
Wednesday 10 March 2021 9:00 - 10:30
Mahitahi Colab boardroom, NMIT, Block A, 322 Hardy Street, Nelson
 
Thomas Sheng from our team is looking forward to participating in this seminar alongside BNZ and Marsh.  The panel will discuss global economic conditions, particularly post Covid-19, and highlight the services available to help businesses mitigate payment risk on your exporting journey.


Staff Update

We welcome Wes Terblanche, our new underwriter to the NZEC team. Wes has a background in credit risk and credit management within retail and banking environments as well as the energy sector in New Zealand and we look forward to his contributions to the team.  To find out a little more about Wes you can click here.


Team Travels

Our team travels have resumed (for regions at COVID-19 alert level 1).  Current plans include visiting:
 9- 10 March | Nelson/Marlborough | Thomas Sheng and Wes Terblanche 
16-17 March | Christchurch | Phil Quinn
 
Alternatively the team is available for virtual meetings using Skype, Zoom, Teams or over the phone.  


Kind regards from,

Chris, Feliza, Sheila, Peter, Phil, Michael, Thomas, Kyle, Jennifer and Wes