Business

Govt plan aims to boost manufacturing sector investment, productivity

11:55 am on 1 June 2022

The government is looking to boost the productivity, investment, employment and export potential of the manufacturing sector with its Advanced Manufacturing Industry Transformation Plan (ITP).

The draft ITP plan was released by Minister for Economic and Regional Development Stuart Nash. Photo: RNZ / Angus Dreaver

The draft ITP plan, released by Minister for Economic and Regional Development Stuart Nash, had been developed in association with business, unions, workers, government, Māori and wider stakeholders to accelerate the growth and transformation of the sector, which covered everything from computer chips to branded chocolate.

Advanced manufacturing accounts for 74 percent of goods exported valued at $44.5 billion.

The advance manufacturing sector referred to the use of modern technologies, processes and business practices to develop products which would not necessarily be high tech, such as food products.

EMA chief executive Brett O'Riley said the plan built on decades of success in adapting to doing things differently.

O'Riley said one of the keys to accelerate its growth would be to create an environment that encouraged investment in new plant, technology and skills.

"We have a great opportunity to bring together a raft of elements - skills, sustainability, carbon neutrality and competitiveness - and invest in the future of manufacturing," he said.

Advanced manufacturing made up a significant share of employment in regional New Zealand, including 17 percent of the Southland workforce, 16 percent of the Taranaki workforce, 15 percent of the Marlborough workforce and 13 percent of the Hawke's Bay workforce, while a third of all jobs were based in Auckland.

"Ultimately, the final plan will help increase the productivity of advanced manufacturing in New Zealand while transforming it into a sustainable, circular and globally competitive low emissions sector," Nash said.

Public consultation on the draft ITP was open from 1 June to 13 July, with a wide range of activities planned over the next six weeks to encourage participation.