Source: New Zealand Government
As Minister for Economic and Regional Development it is my pleasure to support the release of the Draft Advanced Manufacturing Industry Transformation Plan for public consultation.
I would like to thank the organisers of EMEX, New Zealand’s largest Engineering and Manufacturing Trade Show, for hosting this launch event today.
Advanced Manufacturing was selected for an Industry Transformation Plan due to its scale and potential to significantly increase productivity, higher wage jobs, and transition into a globally competitive low emissions sector.
As the Draft Advanced Manufacturing Industry Transformation Plan describes, advanced Manufacturing is vitally important for New Zealand. It is a broad and diverse sector and a major contributor to our economy, jobs and communities.
Advanced Manufacturing makes up 10 per cent of the economy ($24.1 billion of GDP).
The sector employs 10.7 per cent of the workforce (248,800 people). It is the second largest employer of Māori and largest employer of Pasifika.
It is also our largest contributor to value-add exports ($44.5 billion) and critical for innovation in New Zealand accounting for 24 per cent of business expenditure on Research and Development ($649 million).
It is important for both our regions and cities.
Advanced manufacturing makes up 45 per cent of regional employment outside the main city centres. And of course is equally important for our cities.
It is a pleasure to launch the ITP consultation document in Auckland where just over a third of all advanced manufacturing jobs are based and where the sector accounts for 9.1 per cent of the economy.
These are precarious times, with global inflation, stock market volatility, and major geopolitical instability threatening food security. But amongst all this there exists the opportunity to take these challenges head on, and grow our industry while enhancing our global brand.
In this context, I would like to take a few minutes to situate this work within the Government’s broader economic strategy and industry policy.
Many countries have introduced strategic modern industry policies to grow and transform key sectors of their economy. This includes transformation plans for their advanced manufacturing sectors so we cannot afford for New Zealand to be left behind.
In 2019, the Government released a refocused approach to industry policy. This is based on a deliberate and purposeful approach to grow and transform sectors of the economy with potential to develop significant productivity gains, increased wages, sustainable outcomes and improved wellbeing of New Zealanders.
Industry Transformation Plans are the key mechanism for delivering a modern industry strategy. They set a long-term vision for the sector and propose a near-term action plan to accelerate transformation.
Partnership is a key and driving principle of Industry Transformation Plans and I thank representatives from business, unions and workers, government, Māori and wider stakeholders that have contributed to this Draft. This includes members of Steering, Working and Partnership Groups.
In particular, I would like to extend my appreciation to the Tripartite Steering Group Co-Chairs Brett O’Riley (Chief Executive of the Employers and Manufacturers Association), Rachel Mackintosh (Vice-President of the New Zealand Council of Trade Unions and National Secretary of E tū), and Paul Stocks (Deputy Secretary of the Ministry of Business, Innovation and Employment).
As the document describes, two trends provide an opportunity to accelerate the growth and transformation of the sector over the next 20 years.
First, advanced manufacturing is undergoing a fundamental shift through the application of advanced technologies and processes.
Second, more focus is being placed on economic activity that is sustainable, circular and low emissions, and we should never underestimate the power of the global consumer to make choices aligned to their values.
New Zealand’s advanced manufacturing sector can adapt and thrive in this changing landscape. Seizing opportunities will however require action. This is where this Industry Transformation Plan is so important. It sets out 21 actions to accelerate growth and transformation.
This next stage of wider public consultation is critical. If you haven’t already, this is a chance to get involved.
I encourage you to submit your views in order to allow us to refine the action plan and come up with a strategy that has buy-in from as many key stakeholders as possible.
There are a range of opportunities for engagement over the next six weeks, including in-person workshops and webinars across the country hosted by Industry Transformation Plan partners.
Further information is on the website www.advancedmanufacturing.nz. Please join the discussions.
I’m confident about the future of New Zealand’s advanced manufacturing sector, but I also recognise that there is a significant amount of work to do if we are to truly capture our potential
It is for this reason that the Government set aside $30 million in Budget 2022 to enable the first stages of implementation of initiatives and actions that will be detailed in the final Advanced Manufacturing Industry Transformation Plan.
This important step provides the funding necessary to ensure momentum as initiatives are finalised through consultation and as we collectively work together to achieve ambitious transformative change.
It is also why Budget 2022 has set aside $100 million over the coming year for a Business Growth Fund to improve access to finance for small and medium-size enterprises, including those in the advanced manufacturing sector.
The fund involves Crown investment as a minority shareholder alongside private banks and is intended to fill a gap in the capital markets for SMEs that require growth capital for investments such as advanced technologies and processes to lift productivity and wages.
A high-performing, advanced manufacturing sector will accelerate our transition to a more productive, sustainable, inclusive and resilient future.
I congratulate the sector for progress creating this Draft and I look forward to the next stage of consultation to inform the Final Advanced Manufacturing Industry Transformation Plan
