As we move into 2025, the textiles industry in New Zealand faces new challenges with increasing exchange rate volatility. Over the past year, we have enjoyed relative stability, with the NZD averaging around 0.60 against the USD until November 2024. However, in recent months, the exchange rate has dipped as low as 0.55—an 8.3% decline—before settling at 0.58. The Euro has also experienced fluctuations, while the Australian dollar has remained relatively stable.

For an industry that relies heavily on imported stock purchased in USD, these changes inevitably impact costs and margins. While suppliers have worked hard to absorb fluctuations where possible, sustained currency shifts mean that adjustments may soon be necessary. It’s important for businesses across the sector to prepare for potential pricing updates in the near future.

Rather than seeing this as an immediate hurdle, we encourage businesses to view it as an opportunity for proactive planning. Open discussions with suppliers, customers, and industry partners will be key to navigating these changes smoothly. By staying informed and adaptable, we can collectively manage these shifts while ensuring the long-term sustainability of our industry.

While the exchange rate situation remains fluid, now is the time to brace for possible changes and consider strategies to maintain business stability. Keeping communication open and focusing on forward planning will help ensure a steady path through the evolving market landscape.