Rural contracting strong
The rural contracting industry is big business after contributing almost a billion dollars to the country’s economy last year and set to return to its 2008 peak.
Rural contractors added $947 million to New Zealand’s GDP, according to a report prepared by research company Infometrics for Rural Contractors New Zealand.
RCNZ chief executive Roger Parton said the research showed the industry was a major contributor to the agri-sector and a vital part of the overall economy.
He said rural contracting had rapid growth in economic output between 2000 and 2008, expanding 4.1 per cent a year compared with the national economy growth of 2.7 per cent.
‘‘ The sector’s economic output peaked in 2008 and eased back in recent years, due to cautious spending in the agricultural sector in the aftermath of the[global financial crisis]. However, Infometrics expects demand for rural contracting to expand back towards its previous peak again, as farmer confidence returns in the coming years.’’
The contribution to the national economy came from 5255 registered rural contracting businesses. These businesses employ nearly 18,000 people.
Growth in rural contracting has topped 4 per cent.