Advanced Manufacturing

White text on orange background reads: Advanced Manufacturing Industry Transformation Plan. Four images from advanced manufacturing sectors are beneath the text.

Text on orange background reads co-created by: Business, Unions and workers, Government, Māori and Wider stakeholders. Symbols show a handshake, a worker in a hard hat, the Beehive, a koru and 3 people.

"Right now is our moment. We have an opportunity to grow and transform advanced manufacturing in Aotearoa New Zealand. A driving principle is partnership, and representatives from business, unions, government, Māori and wider stakeholders are working together to create a draft ITP."

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 Te Kauae Kaimahi and Assistant National Secretary of E tū
Paul Stocks Deputy Secretary, Ministry of Business, Innovation and Employment

The ITP will provide an overview of Aotearoa New Zealand’s advanced manufacturing sector and outline a series of actions to accelerate its growth and transformation.

Launch of Public Consultation – 1 June 2022

The 'Draft Advanced Manufacturing Industry Transformation Plan' will be launched for public consultation by the Minister for Economic and Regional Development, Hon Stuart Nash, from 9:45am to 11am on 1 June 2022 at the EMEX Conference in Tāmaki Makaurau Auckland. The launch will include feature presentations by Steering Group Co-Chairs Brett O’Riley, Rachel Mackintosh and Paul Stocks followed by questions and answers.

Register to watch the launch online:
Webinar registration(external link)
Further details on EMEX can be found at
emex.co.nz(external link)

What is Advanced Manufacturing?

The term “Advanced Manufacturing” is used in the ITP to cover all manufacturing in Aotearoa New Zealand. This includes both primary and non-primary sector manufacturing. The term “advanced” refers to the use of modern technologies, processes and business practices in the manufacturing process rather than whether the final products are high-tech. This Advanced Manufacturing ITP therefore covers the making of products as diverse as computer chips and branded chocolate.

The importance of advanced manufacturing for Aotearoa New Zealand

Advanced manufacturing is vitally important for Aotearoa New Zealand and a major contributor to the economy, jobs and communities.

It is a broad and diverse sector that makes up 10% of the economy ($24.1 billion of GDP)

This table illustrates the contribution of the 7 advanced manufacturing subsectors to New Zealand’s manufacturing GDP:

Advanced manufacturing GDP by subsector (2020) ($millions)

Text description of advanced manufacturing GDP by subsector (2020)

This table illustrates the contribution of the 7 advanced manufacturing subsectors to New Zealand’s GDP in 2020, which were:

Subsector	$ millions	Contribution to GDP
Food and beverage	$7,464m	30.8%
Machinery and equipment	$4,864m	20.1%
Other manufacturing	$3,029m	12.5%
Metals	$2,820m	11.6%
Chemicals and refining	$2,790m	11.5%
Paper and wood	$2,147m	8.9%
Plastics and rubber	$1,120	4.6%

This chart summarises the respective growth rates of the 7 advanced manufacturing subsectors over the last 5 years:

Compound annual growth rates for advanced manufacturing subsectors (2015 to 2020)

Text description of compound annual growth rates for advanced manufacturing subsectors (2015-2020)

This chart summarises the respective growth rates of the 7 advanced manufacturing subsectors between the years 2015 and 2020, which were:

Subsector	Annual growth rate
Machinery and equipment	4.6%
Metals	2.3%
Plastics and rubber	2.0%
Paper and wood	2.0%
Total manufacturing industry	1.8%
Chemicals and refining	1.1%
Food and beverage	0.9%
Other manufacturing	0.0%

The sector is important for both regions and cities

It employs 10.7% of the workforce (248,800 people) and is the second largest employer of Māori and largest employer of Pasifika.

Map of New Zealand advanced manufacturing

Advanced manufacturing’s share of regional employment (2021)

Advanced manufacturing makes up a significant share of employment in regional New Zealand. For instance, it accounts for 16.8% of the Southland workforce, 16.3% of the Taranaki workforce, 15% of the Marlborough workforce and 13.1% of the Hawke’s Bay workforce.

Distribution of advanced manufacturing employment in Tāmaki Makaurau Auckland (2020)

Just over half of advanced manufacturing jobs are based in Tāmaki Makaurau Auckland, where the sector accounts for 9.1% of the economy. This map shows that the jobs are concentrated in the industrial areas in South and (to a lesser degree) West Auckland.

Text description of advanced manufacturing’s share of regional employment (2021)

This map of Aotearoa New Zealand illustrates that advanced manufacturing makes up a significant share of employment in regional New Zealand. Employment in advanced manufacturing as a percentage of total employment in each region is outlined below:

Region	Percentage of total employment
Northland	9.2%
Auckland	9.7%
Waikato	12.0%
Bay of Plenty	9.8%
Gisborne	9.1%
Hawke's Bay	13.1%
Taranaki	16.3%
Manawatu-Wanganui	11.0%
Wellington	4.9%
Tasman	10.8%
Nelson	10.4%
Marlborough	15.0%
West Coast	12.9%
Canterbury	11.8%
Otago	8.0%
Southland	16.8%

Text description of distribution of advanced manufacturing employment in Tāmaki Makaurau Auckland (2020)

Improving the skills and wages in the advanced manufacturing sector through the ITP will have positive impacts on communities throughout regional and urban Aotearoa New Zealand.

The sector is our largest contributor to exports

Advanced manufacturing accounts for 73.5% of goods exports and just over half of total goods and services exports ($44.5 billion).

Manufactured exports by subsector (NZ$ billions, year ended February, 2010 - 2020)

Text description of manufactured exports by subsector

This chart summarises the value of manufactured exports of the 7 advanced manufacturing subsectors between the years 2010 and 2020.

The value of manufactured goods increased from $28.6 billion in 2010 to $44.5 billion in 2020. This was driven by Food and Beverage increasing from $18.0 billion to $33.4 billion.

Elsewhere, Chemicals and Refining decreased from $1.2 billion to $1.1 billion, Wood and Paper increased from $2.5 billion to $2.8 billion, Plastics and Rubber increased from $0.5 billion to $0.7 billion, Machinery and Equipment increased from $3.0 billion to $3.4 billion, Metals remained at $2.0 billion and other manufacturing decreased from $1.4 billion to $1.1 billion.

The largest destination markets for non-primary sector manufactured goods are Australia, the United States, China, Japan, United Kingdom, Korea, Singapore, Canada and Germany. In contrast, for primary sector manufactured goods, China is the largest export market.

Leading export destinations for manufactured goods by broad industry group Year ended Feb 2020 770px

Leading export destinations for manufactured goods by broad industry group (2020)

Text description of leading export destinations for manufactured goods by broad industry group

This chart summarises the leading destination for manufactured exports for the year to February 2020 by broad sub-sectors. Over 30% of manufactured goods are destined to the People’s Republic of China – by far the largest export destination for manufactured goods. Australia, United States, Japan and Untied Kingdom round out the top 5 destinations.

Of all manufactured exports, 26.1% were food and beverage goods exported to the People’s Republic of China. New Zealand’s largest destination for non-primary manufacturing was Australia (7.4% of all manufactured exports), followed by United States (3.7%).

Why we need an Industry Transformation Plan

Advanced Manufacturing has been prioritised for an ITP due its scale and the potential to significantly increase productivity, higher wage jobs and a globally competitive low emissions sector.

2 trends provide an opportunity to accelerate the growth and transformation of the sector over the next 20 years:

Advanced manufacturing is undergoing a fundamental shift through the application of advanced technologies and processes.
More focus than ever is being placed on economic activity that is sustainable, circular and low emissions.

Aotearoa New Zealand’s advanced manufacturing sector can adapt and thrive in this changing landscape. Transformation, however, will require the right action because:

Currently, the sector has relatively low capital investment in advanced technologies and processes compared to international benchmarks. This correlates with relatively low productivity by international standards.
While the annual median wage in advanced manufacturing is 10.1% above the national level more can be done to grow high-skill high-wage jobs.
There is significant opportunity to grow investment and adoption of advanced technologies and innovation to boost the advanced manufacturing sector’s productivity. If this is combined with other ITP initiatives it will lead to higher wages.
The sector’s transformation will require action to upskill existing workers. There is an opportunity to create high-wage careers in advanced manufacturing, offering great workplace cultures and excellent long-term prospects for a wider diversity of workers.
Advanced manufacturing employs a higher proportion of Māori and Pasifika than other industries, and benefits from a multi-ethnic workforce. More can be done however to build diversity and inclusion, including at leadership and ownership levels and by attracting women that make up only 30% of workers.
The sector’s future competitiveness must be underwritten by an ambition and actions to create a leading sustainable, circular and net-zero emissions sector.
To be globally competitive will require enhanced global connectivity.

Partnership is a driving principle

Work on the Advanced Manufacturing ITP began in July 2020 with engagements with a range of stakeholders throughout Aotearoa New Zealand, including members of a Partnership Group, to understand the challenges and opportunities facing the sector and priorities to accelerate growth and transformation.

Since July 2021, representatives from business, unions, government, Māori and wider stakeholders have participated in a Steering Group and 4 working groups to prepare the draft ITP.

There are 13 representatives from across the sector on the Steering Group which has 3 Co-Chairs:

Brett O’Riley (Chief Executive, Employers and Manufacturers Association)
Rachel Mackintosh (Vice-President of the New Zealand Council of Trade Unions Te Kauae Kaimahi and Assistant National Secretary of E tū)
Paul Stocks (Deputy Secretary, Ministry of Business, Innovation and Employment)

There are 44 sector representatives on the 4 Working Groups. These groups have identified key initiatives that would accelerate the growth and transformation of advanced manufacturing.

Māori play an important role in Aotearoa New Zealand’s advanced manufacturing sector, that is the second largest employer of Māori and includes 870 Māori-owned businesses. The results of the ITP are intended to help create more high-skilled high-wage work opportunities for Māori as well as support Māori-owned and Māori-led advanced manufacturing businesses.

Effort has been made to include Māori perspectives in developing the draft ITP through the participation of Māori business, Māori workers and Te Puni Kōkiri on the Steering and Working Groups. The intention is for engagement with Māori to widen and deepen to best capture and support the opportunities for Māori in advanced manufacturing.

8 government agencies are also involved: The Ministry of Business, Innovation and Employment; Callaghan Innovation; Ministry of Education; Ministry for the Environment; Ministry of Foreign Affairs and Trade; New Zealand Trade and Enterprise; Te Puni Kōkiri; and the Tertiary Education Commission.

Steering group and working groups

Priorities and vision for transformation

The following 6 key priorities to drive growth and transformation of the advanced manufacturing sector have been identified:

improving the understanding and perceptions of advanced manufacturing
increasing investment in advanced technologies and processes to lift productivity and wages
making innovation, R&D and science work for advanced manufacturing
attracting and developing a diverse high-skilled and high-wage workforce
creating a leading sustainable circular net-zero emissions sector
enhancing global connectivity and opportunities.

The Draft ITP will also identify specific initiatives to drive transformation. These will be included in a Draft Action Plan along with measurable implementation actions over 1 to 3 years.

Collectively, these priorities and actions aim to achieve the sector’s long-term vision of:

A thriving Aotearoa New Zealand advanced manufacturing sector of world-class creators, innovators and makers delivering quality products, sustainable solutions and intergenerational wellbeing.

How can you be involved? Public Consultation

Consultation on the 'Draft Advanced Manufacturing Industry Transformation Plan' will be open for 6 weeks from 1 June to 13 July. We look forward to your views as we test and refine the Plan.

Please register to join the ITP mailing list if you are interested in receiving updates on the launch of public consultation and opportunities for participation through workshops, webinars, hui, fono or though written submissions.

Subscribe to the Advanced Manufacturing Industry Transformation Plan mailing list at the link below:

Subscribe(external link)

or by emailing info@advancedmanufacturing.nz

Note: Due to technical difficulties, some emails sent prior to Friday, 17 June will not have been received. We kindly ask you to resubmit any emails you may have sent before this date.

There are multiple opportunities to engage with the ITP including participating in:

The launch of Public Consultation
In-person regional workshops
Online thematic workshops
Workers’ workshops
Māori hui
Pasifika fono

In-person regional workshops

12 in-person regional workshops have been organised around the country with the purpose to test and refine the Draft ITP actions.

Please register at the link below if you would like to attend any of these in-person regional workshops:

Advanced Manufacturing ITP consultation workshops(external link) — surveymonkey.com

Town/City	Date	Time	Venue
Whangarei	Tuesday 7 June 2022	2:30pm to 4:30pm	The Orchard Business & Event Hub 35 Walton Street Whangarei
Auckland	Wednesday 8 June 2022	10:00am to 12:00pm	BNZ Henderson Partners Centre 373 Great North Road Henderson Auckland
Auckland	Wednesday 8 June 2022	2:30pm to 4:30pm	Tāmaki Boardroom BNZ Highbrook Highbrook Partners Centre 86 Highbrook Drive East Tāmaki Auckland
Hamilton	Thursday 9 June 2022	10:00am to 12:00pm	Long Room Wintex City Campus 110 Tristram Street Hamilton
Tauranga	Friday 10 June 2022	10:00am to 12:00pm	Shared Workspaces 65 Chapel Street Tauranga
Napier	Monday 13 June 2022	2:30pm to 4:30pm	Hawkes Bay Business Hub 36 Bridge Street Ahuriri Napier
Wellington/Hutt Valley	Tuesday 14 June 2022	2:30pm to 4:30pm	NZ Chamber of Commerce Hutt Valley 15 Daly Street Level 3, DSV House Lower Hutt
Christchurch	Wednesday 15 June 2022	4:00pm to 6:00pm	Canterbury Employers’ Chamber of Commerce 57 Kilmore Street Christchurch
Dunedin	Thursday 16 June 2022	4:00pm to 6:00pm	Business South Inc Public Trust Building Level 3, 442 Moray Place Dunedin
Invercargill	Friday 17 June 2022	10:00am to 12:00pm	Murihiku Room Great South 143 Spey Street Invercargill
Nelson	Monday 20 June 2022	2:30pm to 4:30pm	Mahitahi Colab Nelson Marlborough Institute of Technology 322 Hardy Street Nelson
New Plymouth	Tuesday 21 June 2022	2:30pm to 4:30pm	Conference Room Brougham Heights Motel & Apartments 54 Brougham Street New Plymouth Central, New Plymouth

Online thematic workshops

6 online thematic workshops have been organised with the purpose to test and refine actions under the 6 ITP priority areas. The ZOOM links for these thematic workshops are below.

Theme	Date	Time	Link to webinar
Increasing investment in advanced technologies and processes to lift productivity and wages	Wednesday 22 June 2022	9:30am to 11:00am	Zoom webinar for increasing investment(external link)
Making innovation, R&D and science work for advanced manufacturing	Wednesday 29 June 2022	9:30am to 11:00am	Zoom webinar for making innovation, R&D and science work(external link)
Attracting and developing a diverse high-skilled high-wage workforce	Thursday 30 June 2022	9:30am to 11:00am	Zoom webinar for attracting high-skilled workforce(external link)
Creating a leading sustainable circular net-zero emissions sector	Tuesday 5 July 2022	9:30am to 11:00am	Zoom webinar for creating net-zero emissions sector(external link)
Enhancing global connectivity and opportunities	Wednesday 6 July 2022	9:30am to 11:00am	Zoom webinar for enhancing global connectivity(external link)
Improving perceptions of advanced manufacturing	Thursday 7 July 2022	9:30am to 11:00am	Zoom webinar for improving preceptions(external link)

Workers’ workshops

Workers are encouraged to attend a range of online webinars to discuss the draft ITP. The webinars are being organised by the NZ Council of Trade Unions Te Kauae Kaimahi. To register interest in attending you can go to:

Tuesday 12 July - registration links

Māori hui

Māori already play an important role in Aotearoa New Zealand’s advanced manufacturing sector. The sector is the second-largest Māori employer (41,900 workers representing 12.7% of the Māori workforce). The 870 Māori-owned manufacturing businesses have the third-highest average operating margin of all Māori-owned businesses.

The ITP aims to identify opportunities for Māori workers, businesses, rangatahi and communities through the transformation of advanced manufacturing and to take steps to create more high-skilled and high-wage work opportunities for Māori and support Māori-owned and Māori-led advanced manufacturing businesses.

To date, Māori perspectives have been provided by Māori businesses, Māori workers and members of Te Puni Kōkiri across the ITP Steering and Working Groups. However, the impact ITP actions will have for Māori depends on how well the initiatives are targeted and delivered and continuing tāngata whenua input is essential.

A dedicated hui is being planned during the consultation period to further explore the opportunities for Māori in the transformation of advanced manufacturing including what successful ITP actions, and implementation with strong participation from Māori looks like.

Please continue to check this website for confirmed details, or sign-up to the mailing list by emailing info@advancedmanufacturing.nz for updates.

Note: Due to technical difficulties, some emails sent prior to Friday, 17 June will not have been received. We kindly ask you to resubmit any emails you may have sent before this date.

Pasifika fono

Pasifika input is critical on the Draft ITP as the advanced manufacturing sector is the largest Pasifika employer (20,900 workers representing 15% of the Pasifika workforce). There are also approximately 130 Pasifika-owned advanced manufacturing businesses. A dedicated Pasifika fono is being planned with the purpose to identify opportunities and refine actions for Pasifika workers, businesses and communities through transformation of the advanced manufacturing sector.

Please continue to check this website for confirmed details, or sign-up to the mailing list by emailing info@advancedmanufacturing.nz for updates.

Note: Due to technical difficulties, some emails sent prior to Friday, 17 June will not have been received. We kindly ask you to resubmit any emails you may have sent before this date.

Written submission

You can also send us written submissions by 5pm 13 July 2022. These can be submitted by emailing info@advancedmanufacturing.nz

Note: Due to technical difficulties, some emails sent prior to Friday, 17 June will not have been received. We kindly ask you to resubmit any emails you may have sent before this date.