New survey finds Kiwi firms facing higher costs, delays, and risk
New Zealand businesses are facing rising costs and greater uncertainty from the Middle East conflict, with finance leaders reporting the effects are already visible in pricing, risk, and supply chains on both sides of the Tasman.
A survey of nearly 700 members of Chartered Accountants Australia and New Zealand (CA ANZ) shows 61% of respondents say their organisation is directly affected by the conflict’s economic spillovers. The impact is more pronounced in New Zealand, where 68% report direct effects, compared with 55% in Australia, while a further 21% across both markets say it is too early to assess the full fallout.
Overall, eight in 10 respondents are seeing increased costs and six in 10 report heightened risk and uncertainty in decision-making. Almost half say clients and employers are already dealing with disruption linked to the conflict.
CA ANZ chief executive Ainslie van Onselen (pictured left) said the findings underline a major test for both economies.
“This is not a distant crisis. It is landing on Australian and New Zealand businesses right now, and our members are seeing it firsthand across every sector of the economy. CA ANZ represents 140,000 finance professionals. What they are telling us matters, and government needs to listen,” van Onselen said.
Energy and logistics costs climb
Among organisations reporting direct effects, higher energy prices are the most common pressure point, affecting 77% of respondents. Businesses are also grappling with logistics bottlenecks and higher operating costs, including supply chain disruption (46%), higher production costs (40%), shipping and freight delays (40%), and exchange rate volatility (36%).
New Zealand firms appear particularly vulnerable to freight disruption, with 48% citing shipping delays, compared with 32% of Australian respondents.
CA ANZ chief economist Professor Richard Holden (pictured center) cautioned that cost pressures are unlikely to fade quickly.
“Higher energy prices don't just hit at the bowser, they push up the cost of food, freight, manufacturing, meaning everything increases in price. Businesses and households are already under pressure. This makes it worse,” Holden said.
Calls grow for coordinated policy response
Around half of those surveyed are monitoring developments closely but have yet to put in place concrete response plans, underscoring the level of uncertainty. Roughly one in five expect to raise prices, with that share higher in New Zealand (24%) than in Australia (17%).
Respondents identified two main areas where government support could help most: investment in infrastructure to bolster supply chain resilience, and direct assistance with energy costs.
CA ANZ group executive advocacy, public and government affairs, Damian Ogden (pictured right), said policymakers need to look beyond short-term fixes.
“Government cannot keep governing crisis to crisis. Fuel security, reliable energy and resilient supply chains are the foundations a modern economy runs on. It is time to strengthen them,” Ogden said.
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