The New Zealand dollar is no longer exporters' biggest concern, with expensive and limited transport options now the number one problem.
Two-thirds of exporters see a reduction in international travel and air freight capacity as the biggest barrier to business. Photo: 123RF
The 2020 Export NZ DHL Export Barometer survey released today has found the impact of Covid-19 on international travel and the dramatic reduction in air freight capacity is what two-thirds of exporters see as the biggest barrier to business.
Concern around the 'level of the NZ dollar' dropped significantly to the seventh major barrier, after being seen as the number one concern in 2019.
"This probably says less about the level of the dollar and more about the increase in other barriers," the report said.
More than a third of exporters reported a drop in orders during 2020, up from 2019 when 15 percent of firms reported a drop.
Despite this, the outlook for 2021 remained positive with half hopeful that exports would increase.
Overall, businesses reported that Covid-19 had not interrupted operations as much as expected, although it had forced many to adjust the way they did business.
"Historically, the most common initiative to increase sales has been developing new products and services, and this is the first year in five years that enhancing online presence has overtaken this."
Forty-four percent reported 'enhancing online business' was the best way to increase export orders.
Exporters also wanted more from the government by way of trade deals and facilitation. A third wanted more free trade agreements and more help with navigating trade regulations in other countries.
More than 270 firms took part in the research.