Advanced Manufacturing

The Advanced Manufacturing Industry Transformation Plan (ITP) is an opportunity for business, unions and workers, government, Māori and wider stakeholders to co-create and co-own a plan to accelerate the growth and transformation of Aotearoa New Zealand’s advanced manufacturing sector.

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.

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.

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:

Graph advanced manufacturing GDP by subsector, 2020 ($millions)

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

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

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

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.

Map of Auckland advanced manufacturing

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.

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 770px

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

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)

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:

  1. Advanced manufacturing is undergoing a fundamental shift through the application of advanced technologies and processes.
  2. 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:

  1. improving the understanding and perceptions of advanced manufacturing
  2. increasing investment in advanced technologies and processes to lift productivity and wages
  3. making innovation, R&D and science work for advanced manufacturing
  4. attracting and developing a diverse high-skilled and high-wage workforce
  5. creating a leading sustainable circular net-zero emissions sector
  6. 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:

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

NoteDue 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.

NoteDue 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.

NoteDue 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

NoteDue 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.

Advanced Manufacturing Draft Industry Transformation Plan document

White text on orange background reads "Advanced Manufacturing Industry Transformation Plan". Underneath text are 9 photos showing different sectors of advanced manufacturing.
Last updated: 29 June 2022