Advanced Manufacturing

Visual: Introduction appears with text: Advanced Manufacturing Industry Transformation Plan. Launch – 13 March 2023. www.advancedmanufacturing.nz

Visual: Paul Stocks walks up to microphone in front of audience at the Advanced Manufacturing Industry Transformation Plan launch event.

Paul Stocks

Tena katou tena katou tena katou katoa, kia ora.

Thank you Les Kendall, Chief executive of Temperzone, and thank you so much for hosting us here.

My name is Paul Stocks. I am the deputy secretary of the Ministry of Business, Innovation, and Employment, and I have the honour of being one of the co-chairs of the Advanced Manufacturing Industry Transformation Plan. Along with Rachel MacKintosh from the CTU and Brett O'Riley from EMA.

It's really good to see you here at the culmination of a 18-month journey on trying to design a path forward for the advancement of the manufacturing sector, a sector that is extraordinarily important, for New Zealand and one which has a very bright future.

It's my great pleasure to introduce the Honorable Stuart Nash the Minister for Economic Development, Minister for Forestry, and Minister for Oceans and Fisheries and Minister for Police. And MP for Hawkes Bay and as we all know Hawkes Bay along with much for our country has been struggling with the aftermath of Cyclone Gabrielle. So I'm really grateful that you can take the time to here Minister I know how busy you are.

I also just need to the flag I've worked for Min Nash for some years in my portfolio of Economic Development. He is a strong advocate for the industry transformation plans, the role that they play in New Zealand's future and economic strategy, and he's been a driving force for making sure that the government is focused on supporting industry and workers in this space.

Stuart Nash

Paul doesn't work for me. He works with me, just wanted to clarify that. As Minister of Economic Development and Regional Development it is my absolute pleasure to be here to support the launch of the advancement of the industry transformation plan.

Les, thank you very much for hosting. Amazing factory, awesome story and I'm looking forward to going for a tour of the factory. Well done, thank you very much for hosting us at the launch today.

It's great to be at one of New Zealand's leading manufacturers to see up close the potential advanced technologies in processing has for the economy, for jobs and communities.

Advanced manufacturing is vitally important. It makes up 10% of our economy and workforce, it's the second largest employer of Māori and Pasifika peoples, it is critical for both our regions and in our major cities. It's because of the sheer scale that advanced manufacturing was selected to be one of our industry transformation plans.

As the plan describes it has the untapped potential to significantly increase productivity, increase high-wage jobs in our transition to a globally competitive, low-emissions economy.

I know right now many businesses and workers are responding to the devastating impacts of the recent extreme weather events in the Government has and will continue to provide immediate relief assistance and support.

But even as we respond to these immediate challenges, we cannot lose sight of our long-term aspirations. The industry transformation plan sets out an ambitious long-term vision for the sector and proposes a near term action plan to get there. Implementing recommendations will enable us to work together through current pressures to a high wage, low emissions economy that provides economic security in both good times and bad, which is the Government's vision for our economy.

As the ITP sets out, 2 trends provide an opportunity to accelerate growth and transformation of our advanced manufacturing sector over the next 20 years. First, the sector is undergoing a fundamental shift to the application of advanced technologies and processes. Second, more focus is being placed on economic activity that is sustainable, circular and low emissions.

New Zealand's advanced manufacturing sector can adapt and thrive in this changing landscape but only if we act now to seize the opportunities. I congratulate the sector on the plan so it can prioritise recommendations for immediate action and the action plan is specific with implementation actions over 1 to 3 years that will achieve high, significant transformation and growth. The hallmark of the industry transformation plan has been partnership.

This plan has been co-developed and is co-owned by business, unions, workers, government, Maori and Pasifika peoples, and wider stakeholders. I really have been impressed with the high level of sector engagement in the development of this ITP with over 700 sector representatives engaging during the consultations. I would like to thank all those who have contributed with a through sector steering and working groups making submission or engaging in work shops.

In particular, I'd like to extend my appreciation to the tripartite steering group co-chairs, Brett O'Riley Chief Executive of the Employers and Manufacturers Association, thank you Brett during trying times and I know you are you incredibly busy. Rachel MacIntosh, Vice President of the National Council of Trade Unions and assistant National Secretary of E tu, Rachel. Thank you.

Rachel thank you as well. Huge effort and we can't do this without the input of workers. Gone are the days where we sit in the Beehive and say this is how things are going to be done and impose it. Well and truly.

And Paul Stocks, the Deputy Sec of MBIE. As you see from his title, Paul is an incredibly, incredibly busy person and vital to the economic drivers of our economy.

So Paul thank you for your time, effort and energy in turning this into an amazing plan. It's also amazing because it's something that we can implement as well.

You and the sector, steering and working, partnership groups have put in a huge amount of effort for the last 18 months. Bring to get together a large sector and demonstrating ambition and partnership principals central to the ITP program.

So once again, thank you. That partnership and the high level of sector engagement provides a strong foundation as we move towards implementing the ITP.  

Delivering on the actions of the ITP will require ongoing collaboration and commitment from all partners, and to support that just initially, I'm pleased to confirm the $30 million of government funding set aside in last year's budget that is now available for the first steps in the first stages of implementation, of certain immediate actions.

This includes $3.6 million for company advice on adopting advanced technologies and processes, $4 million to train workers to use these advanced technologies and processes and $2.9 million to support circular and low emission manufacturing. But there is a lot more to come believe me.

I'm excited and confident about the future of New Zealand's advanced manufacturing sector. Our focus as a government is on creating high-wage, low-emissions jobs through lifting productivity, growing skills, and investing in advanced technologies and innovation.  The priorities in this plan for a high-performing, advanced manufacturing, sector to align with that focus.

I congratulate the sector for creating this plan and I look forward to continuing to work together in the next critical phase of delivery.

Kia ora, Kia kaha. Thank you.

Paul Stocks

Thanks very much Minister.

There are 3 co-chairs of this advanced manufacturing ITP. It is deliberately a tripartite approach led by business, led by workers supported by Government.

So, I'd like, to what we will be doing now is having each of the co-chairs briefly talk through the 6 priority areas that are in the ITP.

I'd first like to welcome Rachel MacIntosh, the vice president of the CTU and of Et tu.

Rachel Mackintosh

Kia ora Paul

Kia ora Minister and thank you Les for your mihi, your welcome.

I also would like to acknowledge that we have our 2 Union site delegates here, kia ora  and good to see you. And we also have another Union person who's been involved in this plan, Matewai Roberts, from Sistema Plastics greetings to you.

Today is an exciting day for the possibility of transformation in advanced manufacturing.

That's moment has been more than 2 years in the making and I acknowledge the work of many people from unions, from government and the employer community in making it happen.

And I thank my co-chairs Brett and Paul as well. I also acknowledge the support and commitment of Minister Nash to this process and its future.

I also acknowledge the whole steering group and worker representatives Lavina Rickard, Ces Herring, and Edwin Ikani. It was Edwin who made the statement early on that we need to harness the creativity of workers and that statement was part of developing a vision for the future of the industry to give the plan something to aim for in the vision is this:

A thriving Aotearoa New Zealand advanced manufacturing sector of world-class creators, innovators, and makers delivering quality products, sustainable solutions and inter-generational well-being.

This vision put to focus on people and on Aotearoa as our place. The plan includes actions that will attract people to manufacturing and will enhance the skills that people will apply in the sector. When we work together, we can have a high skill, high wage sector that people are proud to work in and proud for their tamariki and mokopuna to work in as well.

The plan includes actions to ensure the environmental sustainability of the sector. To honour Papatuanuku, and transform manufacturing into a sector that provides for intergenerational well-being. For generations to come can proudly stand and proudly participate.

We will continue to collaborate, we have several stakeholder groups, including a union group, and including a Maori group, a group for Pasifika, a group for business, that will ensure that all the stakeholders voices continue to be heard as we implement the plan.

And so that we can ensure that we realize that vision of the future of the sector.

Now we just have to do it. Kia ora.

Paul Stocks

Kia ora Rachel and it's appropriate you use the word vision several times because actually the thing that Rachel really brought strongly to the table in the steering group was that vision and sense of purpose for the future and a real commitment to making it happen.

So kia ora. Thank you Rachel.

Now I'd like to welcome Brett O'Riley, CE of the EMA. Brett's been driving this since before the ITP part of the vision, part of the vision was from Brett.

Brett O’Riley

Welcome everybody, I'd like to acknowledge a few other people. The MBIE team led by Hunter Nottage, who's worked tirelessly over the last 18 months in getting us to get to this point. Thank you for your contribution.

It's actually been a lot of fun being a co-chair of an industry transformation plan. I can't always say that about projects we get involved with but I think the spirit that everyone has had having seen manufacturing recognized through the COVID-19 response is being such an important part of the sector. I think that really galvanized us all to look forward and look at what the future could look like.

I would also like to acknowledge a number of other industry groups and business leaders who have been involved on this journey for a long time.

The ITP is really part of a continuum that's been going on for many decades as we try to evolve manufacturing in New Zealand to be globally competitive, and to be able to contribute to the economy.

I'd also like to thank Minister Nash who has been a great support and not just for the ITP process but for the aspiration that we all share that this industry, this capability both horizontally and vertically across the economy can really fulfil what we all hope for New Zealand’s future.

That is to be a much higher wage economy, with much higher productivity, and globally competitive.

Priority 1 is one of the key areas of the industry transformation plan. It's about increasing investment in advanced technologies and processes which we know is that path to lift productivity and wages. We know that we need fit for purpose incentives at all levels from accelerated depreciation and investment in skills,  development and retraining, local economic development initiatives, and foreign direct investment. All of those sorts of initiatives have been implemented in other economies and we know that there that there are lots of lessons we can learn from in New Zealand.

Priority 4 is another key area that's about improving the understanding of perceptions of advanced manufacturing. I remember being interviewed during the COVID-19 response and people saying to me, does New Zealand still have a manufacturing sector? Well absolutely we do, you're not going to see many better examples of that sector than here at Temperzone, but there are also lots of other companies large and small that contribute to the industry and to New Zealand's economic prosperity in advanced manufacturing.

So we need to build on that perception. We need to get the message out to our schools, into tertiary institutions that there are really meaningful careers in the sector. And we need to have more of our ringatahi with the digital skills and understanding of these industries that they can take forward.

The partnership that we've forged through the ITP has been something quite special. And I think that's been touched on by the other speakers. But now it needs to endure and ensure that there is an ongoing commitment from all of the parties, including business, to realizing the vision of the industry transformation plan.

Because a plan without implementation, will just sit on the shelf. And we're all very committed to wanting to see this develop. The $30 million dollars of funding committed from the Government is a fantastic start but we know that it has to be a partnership from all of the parties in the ITP to make it successful.

As part of that we will be forming a new group, the Aotearoa Advanced Manufacturing Group to continue to bring together the key parties and leaders to drive the ITP, along with regional groups to ensure there is localized commitment and action, and that local contribution that has been made to the ITP through the working groups, through the regional consultation has been really important. So thank you to those of you who are involved in that.

The power of the collective is so important, across the diversity in collaboration that this industry transformation represents with our Maori and Pacific communities and with regions right throughout our country. Importantly, because this represents a horizontal capability in the economy, it's the way the advanced manufacturing ITP plan will work alongside many of the other industry transformation plans and already those discussions have taken place.

With your food basket.

And my food basket.

The people will thrive and so will advanced manufacturing.

Thank you.

Paul Stocks

Kia ora

Thanks for that Brett. I'd like to touch on the priorities in the ITP, which is about innovation and global connectiveness.

The ITP is not about today's manufacturing. It's about tomorrow's. It is about the shape of the future of the New Zealand economy and to quote Taylor Swift, if you fail to plan, you plan to fail, and this is actually about planning for the future. But one of the key things about the advanced manufacturing space is the level of R&D undertaken by firms in that sector. When we look at R&D across the broader New Zealand economy and a lot of its done and paid for by the Government, that’s not the case advanced manufacturing.

So at the moment 75% of R&D spend in the manufacturing space is done by firms for firms lifting their own capability. That innovation is going to be critical for the future of this industry and for the future of New Zealand and that’s why the fifth priority for this ITP is really boosting R&D there.

I know that Rnd that takes place in a place like Temperzone is not about research in a university. It's not about white-coated scientists, it's actual innovation that takes place on the floor. Changes processes, changes the way we do things for the better, and actually in the last year the Government announced some changes to how we fund that type of R&D.

So there is $90 million dollars over 4 years for a new R&D grant to help people move into R&D and importantly I think for advanced manufacturing there is $155 million dollars over 4 years for the Arahira Innovation Trailblazer Grant which recognizes that Innovation takes place on the floor in the work place. And not just in universities and CRIs.

Secondly, global opportunities, we are a trading nation and will always be and over our history a lot of that has been in the primary sectors. But manufacturing is a huge export industry although at the moment about 80% of that is in the primary sector, so the trick is to expand that out to have firms like Temperzone in the air-con space and the really high-end space to actually get out there and attract into markets. 

So, it's about diversifying the products that we sell, and the markets that we sell into, and manufacturing has a really diverse set of markets that it goes into - into Europe, North America and into Asia, really broadly spaced.

That's going to be really important. The commitment from Government in the space is that when we do trade missions and delegations and these are important to build connectivity to new markets when we have ministers, traveling and selling the products of New Zealand and selling the advantages that we have advanced manufacturing will be front and centre in those trade missions and in those trade delegations. We really want to push that connectivity and that market access and that market success.

I just want to finish by really celebrating the team, the broader team in advanced manufacturing. Not just the Steering Group but the hundreds of people and gave their ideas, their contributions to how we can make this a really successful industry.

There are 20 actions in the ITP, 20 specific concrete things that we collectively will move forward to do and so we're really looking forward to making that successful and thank you.

Thank you Brett.

Thank you Rachel, thank you MBIE team.

Well done.

Kia ora.

Co-chair Paul Stocks

Kia ora, thank you very much, Minister.

I think that as you said that this is one of the industry transformation plans. It's one of the suite of plans that cover the entire economy. But this is one I think that's at the forefront of the way that's taking place.

It's now my great pleasure to welcome Rachel Mackintosh to the stage. Not just yet. I gotta pull you up first. One of the key planks of this plan was it was one of the first industry transformation plans that was genuinely co-chaired by industry and by workers with support from government. And what we heard consistently through the dialogue was it is the makers who make manufacturing special. It is the people who work in manufacturing, and Rachel and the other members of the steering group made that come alive in a very, very real way. And you will see that of the six priorities in the ITP.

First amongst them is a high skilled maker workforce and how do we make it a rewarding and trained environment? And also how do we make sure it's circular and sustainable and those are the areas that Rachel particularly champion amongst others in the ITP so So Rachel, thank you for the leadership. Please now you can come up.

Co-Chair Rachel Mackintosh

Tēnā koutou, tēnā koutou, tēnā koutou katoa.

Ko Rachel Mackintosh aho.

Nō reira. Tēnā koutou, tēnā koutou katoa.

Kia ora Renata. Motu mihi mahana.

I'd like to acknowledge Minister Nash, I'd like to acknowledge the government's commitment to this process, including budget commitment. I like to acknowledge my co-chairs. Brett - that's not what it looks like, and, Paul Stocks. So it's been great. It's been great having that working relationship over the past year.

I'd like to acknowledge the rest of the steering group, and the working groups that have been working on this and the fantastic team at MBIE who has done a lot of grunt work and really taken on board all the inputs. I will particularly name the three workers on the Steering Group. So Ces Herring from First Union works in Kaitaia. Lavina Ricard from E tū. Works in Havelock in the fish industry, and Ed Ikani, who is another another E tū delegate just standing up over there. Very handsome. And it has been great to have working people from the factory floor as part of this process.

First of all, I just want to talk about the vision for this plan.

It tells us where we're going, and actually what we want to transform to. It's short, so I'll read it out.

We want a thriving Aotearoa New Zealand advanced manufacturing sector of world class creators, innovators, and makers delivering quality products, sustainable solutions, and intergenerational well being.

So this vision, first of all, it's really grounded. This place here it mentions Aotearoa New Zealand. So this is where we are we're on this land. And what can we do in Aotearoa New Zealand that nobody else could do is part of it.

It's got time. It talks about intergenerational wellbeing. So it's not just for now it really is a vision looking beyond the horizon.

It's got people. It's got that idea of well being that's about people, creators, innovators and makers, so everybody involved in the process.

And it's got action. So people doing things to improve the industry to transform the industry and really improve our society.

And that's what grounds this plan. And that's, that's the beacon. That's what we're heading towards. And that's what it should be measured against. And that's what the outcomes should be measured against is this vision being realised.

And the vision really takes, it comes from taking a breath and looking up and imagining what is beyond our immediate situation, and thinking about transformation, not just transactional activity. It comes from hearing all the voices. And Minister Nash and Paul have already mentioned this. There have been many, many voices in this work and we've had a cooperative approach to the vision. And that's the real strength of the work so far, and it will be essential to the success of the transformation to have workers, employers and government engaged in and contributing to have Māori business, Māori workers and Iwi and Hapu involved as vital to creating and sustaining a transformation. It will take investment. And it will take ongoing commitment by all of us.

I do want to talk about what's in it for the workers. You know, that's what we're here for. That's the interest that we represent. And it really is an opportunity to advance the interests of working people, and also to make space for their contributions.

I want to mention, one of the statements that came from actually was from Edwin I might as well name him on our steering group is that we have a challenge to and this is his words, unleash the creative potential of the workers. So not to just think of workers as labor units, but actually human beings who every single one of us is working people have creativity. So we have an approach to skills in this draft plan that centres the people doing the work. That includes what's necessary for productive business outcomes, and for satisfying decent work.

It allows for the development of people, the development of culture, creating a working environment that is conducive that aim of unleashing the creative potential of workers. And the plan, when it works well, we'll have decent work, decent wages and decent conditions for working people.

And so the actions under skills are to have our workforce skills map that will be developed in collaboration with Hanga-Aro-Rau Manufacturing, Engineering and Logistics Workforce Development Council. Renata is co-chair. Another steering group member, Troy Coyle, who is down with COVID, as the other co-chair of that workforce development council, and I also sit on that council. The cooperation between the skill sector of New Zealand in this plan is going to be vital. And so yeah, so we do that map.

We have individual development plans for people. And we develop digital and foundational skills first, and that then we attract a larger and more diverse workforce, by improving the culture and values through a development program, so that we can attract and retain a more diverse workforce than we have at the moment.

I just want to before I finish talk about the sustainable circular zero emission sector was great to hear Francesca this morning at breakfast. And to understand that there's a real government commitment to the circular economy.

Just to go back to the vision. It's a vision that's placed in Aotearoa New Zealand and as a vision of intergenerational well being, and the circular economy is going to be vital here. And so the actions there are to map the emissions and waste that we've got at the moment. To embed Circular Economy principles in the advanced manufacturing sector, and to develop zero emissions initiatives.

So skills and sustainability are just two of the six areas and my other co-chairs are going to cover the other, the other four.

So I just want to finish by reiterating that the strength of this plan is the cooperative way that it has been developed. We need to continue to have the input of government, business and workers, Maori to ensure that the vision is realised.

Kia ora tātou.

Co-Chair Paul Stocks

Thanks very much, Rachel. Once again, just thanks so much for both your leadership and your visioning on the ITP. As you would have seen, Rachel has a very strong vision for the opportunities and the possibilities for Aotearoa New Zealand.

It's now my pleasure to welcome I hope, technology willing, Brett O'Reilly to the screen. Brett. Are you there? Oh, yeah, gidday. I hope you are feeling all right. Because Brett as the time in 2022, is isolating at home with COVID. And I know he really, really wants to be here.

Brett's the chief executive of the Employers and Manufacturers Association. There's a clue in the name manufacturers. He has been, again, a passionate advocate for the sector. And for Tāmaki Makaurau - previously when he was chief executive of ATEED.

And I've known Brett for longer than I care to remember but every time I've known him over the years, he's been really pushing for the role of industry in New Zealand and what it can both contribute to the country as a whole. So it's really good to see you here.

Brett's particular focus in the ITP was on two things. Firstly, how do we tell our stories as a sector that really makes the world and around New Zealander has recognised the importance and the opportunity in the sector.

And secondly, and this is an issue that I know is dear to your heart, how do we encourage an increase in much needed investment and of the sectors that we are truly advanced manufacturing.

So Brett, welcome hope you feeling good?

Co-Chair Brett O'Reilly

Kia ora Paul.

Tēnā koutou katoa.

Ko Brett O'Reilly toku ingoa.

Excuse my, my voice.

It's actually ironic that I'm not with you today in person because of COVID. Because in a way, this industry transformation plan really came about because of COVID. Many of you in the audience will recall that COVID bought into sharp relief, just how important the manufacturing sector was. And 2020 as we grappled with lock downs and had to keep businesses and their workers operating safely. I was involved at that time and sharing the response to those challenges to the manufacturing sector. And through that process, we began talking with government about the opportunity for a manufacturing recovery, and where that might lead. That morphed into the advanced manufacturing industry transformation plan, as you've heard this morning. And despite an election and in between over the last 18 months, the team have worked really, really hard through this Mahi to deliver this draft plan that we present you today.

Advanced manufacturing, because it is about the future, it is about the direction that we're heading in and having the ITP structure around it, I think gives us a great opportunity to move forward with this.

We've had the opportunity over the last 18 months to reflect just on how significant manufacturing is in the New Zealand economy. And I will remember doing some of the media interviews in 2020. And having quite experienced commentators asking me about how significant that the manufacturing sector was to New Zealand so I think that the way we have been able to bring a lot of the facts that the minister talked about, and his his speech, and other information together and this ITP will be a surprise for for many New Zealanders just how significant advanced manufacturing already is in our economy.

It is an unambiguous pathway to higher wages through a higher skilled manufacturing sector.

It's also an unambiguous path to greater prosperity. While as Rachel said remaining consistent with our aspirations to be a low carbon, sustainable economy.

For me, it ticks the boxes for New Zealand for what sort of industry we want to have in the future, and builds on decades of success by New Zealand manufacturers and a globally competitive environment. And it's been great to see on the Prime Minister's recent trade missions, a number of advanced manufacturers featured on those missions. And in their work highlighted, so it's actually one of the success stories of our economy and industry transformation plan, and the consultation that goes with it is the opportunity to further that.

We have lots of proof points that give us confidence in the future of the sector. We have a number of manufacturing firms that have already embraced elements of industry four and are advanced and advancing alongside the makers and workforce.

I've seen that firsthand through the work that we do with our EMA members and the engagement that we've had with businesses and partnership with Beca, Callaghan Innovation and other partners in delivering the industry for program. Manufacturers today represent one of New Zealand's most diverse workforces, both in age and ethnicity, and they are embracing the opportunity to acquire more skills.

Similarly, we're seeing new opportunities for manufacturers to work together and cluster to take advantage of economies of scale and modern practices, which includes contract manufacturing.

And the industry transformation plan highlights some of these opportunities, like the Ngawha Innovation Park in Northland and its focus on circular economy.

And we know that there are similar opportunities being developed in Auckland southern corridor, and the Comfort Groups development at Ohinewai.

There are also manufacturing clusters elsewhere in the Waikato, including Greenfield developments, like Hautapu.

There are also clusters in areas like Tauranga, Hawke's Bay and Christchurch.

So we can see that there are new models that we can look at that will allow the sector continue to expand.

One of the keys to maintaining this momentum and realising the true potential of the advanced manufacturing sector will be to create an environment that encourages the investment in new plant, new technology and new schools. These are areas that the EMA and other industry bodies represented today have long advocated for and they are covered in the report's recommendations. They will continue to be areas where we work hard to get government policy aligned with our aspirations. And the ministers covered some of the initiatives that the government announced in the budget.

We believe we have an opportunity to bring together many of the themes we have discussed - skills, sustainability, carbon neutrality and competitiveness, and invest in that future. That means investing in young people, but also in re-skilling people already in the workforce. We believe that involves making changes and areas like depreciation, to encourage investment and plants and technology. This needs to be for manufacturers of all sizes, including smaller benefit, smaller manufacturers, who don't necessarily see themselves as being advanced, but are nevertheless a critical part of the advanced manufacturing ecosystem and supply chain. And it's the way that ecosystem functions. That's one of the things that we're really focused on, particularly at a time when there is so much pressure on the global supply chain.

As part of the ITP, we've begun consultation with Māori businesses and investors, who as intergenerational asset owners already are involved in the advanced manufacturing ecosystem. But there are opportunities to expand that involvement, and for manufacturing to add even greater value to much of our primary economy, and to spawn exciting new opportunities. We look forward to further developing that korero with Māori over the coming months and years.

While today we celebrate the launch of the industry transformation plan and the consultation on, it is the next steps that will be really critical.

As businesses and employers, we need to organise ourselves to partner with the government and unions to operationalise the industry transformation plan, and implement many of its recommendations. We're putting together an establishment group to develop this model, and welcome interested parties from amongst industry today and in some of the industry bodies. More announcements about this cooperation will come in due course, but we really encourage people to participate in this work, as we create the sort of industry group that we need to take this ITP forward.

The consultation process has begun. And it is appropriate that today is launched is that EMEX one of the most significant gatherings of the advanced manufacturing sector. I urge everyone to take the opportunity to take part in the consultation, to challenge our thinking, and to help us achieve aspirations in the sector, which can only benefit people and their communities throughout our country.

I'd like to thank Minister Stuart Nash for his unwavering support of this kaupapa. I would also like to thank those participants in the industry transformation plan process, including my co-chairs, Rachel and Paul, and our dedicated steering committee and working group members and has been hard Mahi, but it has been very enjoyable.

Finally, my thanks to the work that the MBIE team have done in maintaining momentum, and producing a high quality report from which we can base our future plans for the sector. Today, we lay down the wero for the future of the sector. I invite you all to embrace the challenge, openly debate the issues together and grasp the exciting opportunities for this in future generations.

Kia ora.

Co-Chair Paul Stocks

Kia ora.

Thanks Brett.

There was absolutely no sign of COVID fog and that very, very insightful and clear.

So there were six priority areas in the ITP. Rachel and Brett have covered all four of them.

I'd like to very briefly cover off the last two which were innovation and global connectivity.

Innovation. So the advanced manufacturing sector makes up only 10% of all businesses in New Zealand, but it's a quarter all business R&D. And there's a reason for that. And the reason is that having innovative processes, innovative products is the key to success. And research and innovation supports them. Last decade or so I've been responsible for research, science and innovation policy at MBIE. And one of the things that we heard consistently is how do we get good research out of the universities and into businesses. And it's another theme that we kept on hearing through the ITP.

So the other things we heard is that place matters, ecosystems matters. I'll use the word clusters they matter. Bringing like minded businesses and workers together in a similar place to share knowledge and experiences really matter. So there are a few recommendations that are in the draft ITP around how we can lift the contribution of ours RS&I system of innovation to advance manufacturing and really grew up that value curve. And by the by our manufacturers are already well up the value curve, we do some awesome high tech product in New Zealand, that is core to many of the world's you know, most famous products. But those initiatives were firstly mapping the system.

As I said, I spent 10 years responsible for the RS&I system, and I find it hard to get around it. So I don't know how people who are whose day job is not navigating universities and CRIs find it. So the first thing was to actually provide an easy to use map, a guide of where to go for the best and research and best in innovation.

The second big idea was the idea of creating a Centre for Advanced Manufacturing Excellence. This is where you'd gather together both firms and researchers in a single place to really provide a one stop shop, it's something that's done elsewhere around the world, UK has catapults, Australia has an advanced manufacturing growth centre. So what we should do is look overseas and see what works there and bring it back to your own New Zealand.

Thirdly, the use of product accelerators, they're in place now, let's make sure that people know how to use them, and how to really benefit from commercialisation expertise.

And finally, there is another big process that Minister Megan Woods is currently leading, which is a wholesale sort of once in thirty year review of our research science and innovation system, future pathways Te Ara Paerangi. it's important that advanced manufacturing in the manufacturing sector more generally, is front and centre there. Our research, science and innovation system has built over many years, great expertise in biological industries, great expertise in natural hazards. That's really important. But what's equally important is that manufacturing is front and centre for the next 30 years of the science systems development.

The final area was global connectivity. We all know that we're an exporting country, we're 5 million people. We can't sell to ourselves, and particularly in manufacturing. Half of all goods and services that New Zealand exports are for manufacturing, and three quarters of goods are manufacturing. So it's a critical component of what our country is in what we sell. I mean, traditionally, people overseas would have thought about New Zealand, firstly a sheep, and then a sheep and hobbits. And actually what's really important is that they think of New Zealand as high tech, high value, high integrity products and in the manufacturing space. So missions such as the Prime Minister has just left the United States and previously to Japan and Singapore, are really, really critical for building that constituency, building that understanding, and building trade agreements and access to markets.

And the ITP team basically identified that they said that study missions were really important to learn from what happens overseas, to build our export story, and to keep on contributing to those trade missions. So when you're invited to participate, please do. They're really important not just for your firms, but for the country as a whole.

So that was the ITP, six priority areas, a lot of work has taken place over two years. But it is just beginning. And we are now entering to a phase of asking the broader community, the broader manufacturing community and New Zealand as a whole about which of these 21 recommendations matters most, what have we missed, by the way, I noticed that when you open up into the middle, and accelerated depreciation is right in the middle page. So I'm not sure if it was an accident or not. But which of the of the priorities matter most.

So there are 21 initiatives. That's a lot to get through, we are going to be holding 12 regional workshops from Kaitaia down to Invercargill over the course of the next six weeks. Again, it'll be awesome to see people in person, it's just so special to be back together again.

There will be specific sector online thematic workshops, Māori hui, Pacifica Fono, you know, a real attempt to engage on this. And as has been said, the website as the Minister said, www.advancedmanufacturing.nz. All the details there.

So we really do want to see you and all your contacts there to engage. We're hoping to finalise the plan by the end of the year, at which point are we presented to Minister Nash. And then Minister, it's all up to you no pressure.

So that's a huge ambition for us to deliver that by the end of the year.

Before I close off and invite Minister Nash and Rachel to return to the, to the stage and, and Brett to the screen for your questions.

I do want to just do a call out to the MBIE team for the mahi that they have done on this, particularly Hunter Nottage, who's led the team with as was mentioned this morning over breakfast, always with a smile. And by the way, it's not that easy to smile when you're working for me. So he's done a really good job. So I do want to call out the team. They have been unwavering in their commitment. And again, I also want to call out the steering group. It's been an excellent professional group have worked together really, really well and produce excellent mahi. So thank you to the MBIE team and thank you to the steering group.

Minister for Economic and Regional Development, Hon Stuart Nash

Nau mai haere mai tena koutou, tena koutou tena koutou tena koutou katoa.

Thanks Renata for the mihi and the welcome. Thanks, Paul, for all the work you've put in.

As Minister for Economic and Regional Development, it is actually a pleasure to be here as we launch our draft advanced manufacturing industry transformation plan for public consultation. I'd like to thank the organisers of EMEX - New Zealand's largest engineering and manufacturing trade show for hosting this launch event today. And I'm really keen after this to to head out and have a look around some of the stalls so not too much of a grilling. Up to you guys.

Advanced manufacturing was selected for an industry transformation plan due to its scale and its potential to significantly increase productivity, higher wage jobs and transition into a globally competitive low emission sector. As the draft advanced manufacturing industry transformation plan describes, I might just call it the draft plan going forward.

Advanced manufacturing is vitally important for New Zealand. It is broad and diverse, and a major contributor to our economy, jobs, and the community. In fact, advanced manufacturing makes up 10% of the economy at $24.1 billion of GDP. The sector employs 10.7% of the workforce at 248,000 people.

It's the second largest employer of Maori and the largest employer of Pacifica. It's also our largest contributor to value added exports at nearly $45 billion and critical for innovation in New Zealand accounting for 24% of business expenditure on R&D, and that's about $650 million, probably enough for the stats.

But it's important for both our regions in our cities and advanced manufacturing makes up for a couple more states 45% of regional employment out of the main city centres.

And it's a pleasure to launch the ITP consultation documennt in Auckland we just over a third of all advanced manufacturing jobs are based and where the sector accounts for 9.1% of the economy.

Now we live in precarious times, globally precarious times. There's global inflation. And we're well aware of that. The stock market volatility, distressed global supply chains, there's war. There's major geopolitical positioning in a way that we haven't seen for at least a generation. There's food security issues, and we're still in the shadow of a global pandemic. But out of this exists, opportunity, challenges to be taken head on and chances to influence and grow our industry and optimised our global brand. And in light of this, I'd like to take a few minutes just to to outline the government's broad economic strategy and industry policy.

Many countries have introduced strategic modern industry policies to grow and transform key sectors of their economy and this includes transformation plans for their advanced manufacturing sectors. Australia is one, Singapore, UK, United States, so we can't afford for New Zealand to be left behind. In 2019, as Paul outlined, the government released a refocused approach to industry policy based on a deliberate and purposeful approach to grow in transition key sectors from the economy with potential to develop significant productivity gains, increased wages, sustainable outcomes, and improve wellbeing for all kiwis.

The plans are the key mechanism for delivering modern industry strategy. They set the long term vision for the sector and propose near term action plans to accelerate transformation. Again, this Paul outline partnership is a key and driving principle of industry transformation plans and I think representatives from business, unions and workers, government, Maori, wider stakeholders that have contributed to this draft. This includes members of steering, working, and partnership groups. In particular, I'd like to extend my appreciation to the tripartite steering group co-chairs Brett O'Riley  zooming in chief executive of EMA Association, Rachel Macintosh vice president of New Zealand Council of Trade Unions and national secretary of E tū . Thank you very much, Rachel, And Paul Stocks is, as he mentioned, Deputy Secretary of MBIE.

As the document describes there were two trends that provide an opportunity to accelerate growth and transformation of the sector over the next 20 years.

The first advanced manufacturing is undergoing a fundamental shift through the application of advanced technologies and processes. And at my table at breakfast this morning we were talking about how we are printing we're not we but that you can now print houses. Believe it or not. I mean goodness me.

Second, more focus has been 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 now. This is where the industry transformation plan is so important. It sets out 21 actions to accelerate growth and transformation. However, this is the draft plan. And whilst we have had some amazing people from right across a number of sectors working on this, it is going out to consultation. Because we want to know, we want to hear voices to see if we've got it right. Or there are things that we've missed or areas that we could, that we could build on. 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 partners. Further informations on the website that's actually advanced.manufacturing.nz. Pretty simple. So please join in the discussion.

I'm confident about the future of New Zealand's advanced manufacturing sector, but I also recognise there is significant work to do if we are to optimise our potential. It is for this reason that the government set aside $30 million in the last budget 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 we collectively work together to achieve and business transformation goals.

It's also why Budget 2022 is setting aside $100 million over the coming years for the Business Growth Fund, which will obviously be accessible for those in the advanced manufacturing sector. The fund will be a crown investment as a minority shareholder along private banks. It is intended to fill a gap in capital markets for SMEs that require growth capital for investments such as advanced technologies and proccesses 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 in creating this draft and I look forward to the next stage of consultation to inform the final advanced manufacturing transformation plan. Kia ora. kia kaha. Onwards and upwards. Thank you