Fisher & Paykel Appliances announced yesterday that it was shifting its Mosgiel production line offshore so it can take advantage of low-cost labour and other benefits overseas. The move will mean the loss of 430 jobs to Mexico, Thailand and Italy.
The political reaction has been swift. Yet Fisher & Paykel's decision in my view reflects the reality of the global market in which we now live. Pingar recognises that reality. The focus of our sales and marketing activity is London, not Auckland. That makes sense. As more NZ businesses go global, more economic activity will relocate offshore.
This is not the sign of a weak economic trend. It is a sign of strength as NZ businesses move onto the world stage to compete with the best. More companies will follow Fisher & Paykel Appliances example in the future. Long-term, New Zealand will benefit.
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