Perceptions of manufacturing change in a time of reconstruction: the case of Levin

Abstract

The aim of this research was to identify how manufacturers in Levin perceived the effects of changes that have taken place in economic policy since the 1984 general election. The opinions expressed are my own, and do not necessarily reflect those of the businesses people I interviewed. All available businesses (39) were interviewed over six weeks in November/December 1989. Those interviewed indicated that: 1. Overall levels of employment have declined since 1984/85. However, this was not a smooth progression. From 1984 to 1986/87 employment in businesses increased then decreased after the 1987 stock market crash. Most reductions in employment have occurred through natural attrition. 2. Many business people are concerned by the increasing difficulty of attracting and retaining skilled staff, and a lack of the work ethic in those entering the work force. 3. Competition has increased significantly over the last four years and is sourced from both imported and domestic producers. A number of firms are concerned by a general decline in the amount of work available for the same number of firms. 4. There have been a number of shifts in products and production methods which in general are designed to increase the efficiency of the firm. 5. Taxation and Accident Compensation are the main 'problems' identified by businesses. Of these changes, only increased competition can seen to be a direct result of the new economic policies. Few interviewees were able to identify specific economic policies which have had particular impacts upon their business. It would seem that the governments economic policies have been responsible for accelerating the rate of structural change within a business, and have also removed businesses whose management was unwilling or unable to change with the times. For other similar towns in New Zealand, the Levin case indicates that 'restructuring' has started to create an environment which allows businesses to flourish if the opportunities exist, and the businesses managers/owners are prepared to take the risk. However, Levin manufacturers still feel there is a long way to go before the 'level playing field' has been finished.