-Helen Down, Chief Executive, Hutt Valley Chamber of Commerce

The local manufacturing sector continues to play a critical role in ensuring New Zealand has resilient and sustainable supply chains. 

The Covid-19 operating environment has caused significant uncertainty and disruptions to the global supply of product and goods, and opened up new opportunities for local manufacturing to re-examine and refocus networks and flows, and create new connections across the sector to stabilise supply chain reliability.

Without a doubt, if well supported by government policy, the manufacturing sector will play a key role in the long-term Covid-19 economic recovery, including with job creation.

“When products and services are scarce, it is often harder for a small country like New Zealand to compete in terms of buying power on the world stage.  Overseas suppliers often favour markets with higher demand.” Helen Down said.

The disruption of the global pandemic exposed gaps, but also opened up opportunities.

“The Chamber has seen a spike in enquiries coming in for new product development from companies who would otherwise have imported product from overseas with the disruption to shipping and air freight.”

The Chamber is now actively promoting and supporting opportunities for greater collaboration in the manufacturing sector, as well as continuing conversations with government to seek greater support. 

“It will be important to be smart about manufacturing those things that are going to be harder to get due to Covid-19, and as a manufacturing sector, work together to create domestic manufacturing capability. 

“Many manufacturers have demonstrated their ability to adapt very quickly, refocus skills and resources, and scale up as needed, or create in-demand products quickly. 

“This can include identifying products we haven’t previously, or are not currently manufacturing, but where there is likely to be a high demand such as health products, masks, and ventilators,” Helen Down said.

New Zealand often excels in high tech manufacturing. That speed to deliver is now more valuable than ever for some specific items, so that also means the cost per unit is not as important.

There is a huge amount of talent, innovation, and resourcefulness in the local Hutt Valley manufacturing sector and the current environment is providing many opportunities to focus on what can be achieved locally, using locally sourced plant, parts, products and business connections.

Some manufacturing companies are continuing to grow strongly, and they are reconsidering their supply lines and, importantly, looking for local suppliers, and supporting local communities. 

Hutt Valley manufacturer, NZ Tube Mills, has faced an unexpected market shift in the past and found that refocusing and collaborating can open up new and exciting opportunities.

 In the 1990s, with the changes to the automotive industry, NZ Tube Mills shifted their manufacturing focus from making exhaust systems. 

They spotted an opportunity to work together with other Hutt Valley based manufacturers to create stainless and carbon steel vineyard trellising solutions, known as Eco Trellis and ECO-V. 

The collaboration saw NZ Tube Mills develop the parts, another manufacturer, Myriad Engineering weld the parts with their innovative Robot Welder, and Leda Extrusions manufacture the clips that are used on the posts. 

Mark Wilson, Managing Director of Myriad Engineering Limited, believes supporting local businesses is the key. 

“Our customer base is in New Zealand.  At the end of the day we are making sure we are keeping the local economy going as much as possible, we don’t import materials. We buy all our materials locally and manufacture the components for an extensive range of industries,” he said. 

The benefits of working locally are quicker response and turn-around times, working with people face-to-face, and job creation with people employed locally.

Richard Latta, the Managing Director at Pike New Zealand, agrees. 

“Many of our suppliers are local suppliers providing products and services to us. That’s really important to us because we feel it’s critical the dollar is shared around the local commercial community.  It means we are all getting a slice of the pie.

“We use external engineers and electricians, we buy all of our packaging from a local packaging company, and use local transport businesses were we can.  That’s really important to our ethos and the way we do business,” Richard Latta said.

He explains that their local manufacturing collaboration has recently extended with Upper Hutt based Leda Extrusions purchasing the Pikes business.  Together they are continuing to develop new products for the Eco Trellis solution that are likely to go to market next year.

The local manufacturing collaboration has been such a success that the Eco Trellis systems have also captured the overseas market.

Chief Executive of NZ Tube Mills, Terry Carter, says they have discovered that brand New Zealand is a huge selling point overseas.

“Globally, New Zealand is an attractive supplier.  We have also managed a strong response to Covid-19 which has given us a competitive advantage in the manufacturing sector for export.

The main issue can be bureaucracy.  New Zealand manufacturers are very flexible and seize opportunities, however at times it can be difficult to get government support. Now is a pivotal time for government to consider shortening some of the market access processes,” Terry Carter said. 

The Hutt Valley Chamber of Commerce continues to work closely with government on these issues, and others.

The Chamber has helped businesses since before lockdown with their central government certification, customs permits and consents, including importing components.

“We have also been helping manufacturers to access funding from the government business recovery team through the Regional Business Partners Network. And, we are continuing to work with manufacturers to access funding so they can adapt their strategy and get local advice.”

The Chamber has also worked where it can to help connect up suppliers and manufacturers to support supply chain resiliency.

“We know businesses and manufacturers want to be better connected,” Helen Down said. 

Next month the new Manufacturing & Technology Forum will launch at the 2020 Wellington Business Expo, hosted by the Hutt Valley Chamber of Commerce. The event will be opened by the Hon. Grant Robertson and feature a panel of well-known manufacturing and technology leaders.

Bringing Wellington manufactures together at the event is an opportunity to start, and continue, conversations including asking the Government to support the growth of the local manufacturing sector.  Policies that support a strong and thriving New Zealand manufacturing sector will contribute to economic recovery.

The Government shouldn’t underestimate the opportunities that manufacturing brings to New Zealand.  There are many niche opportunities for manufacturer’s right across the spectrum and many of these opportunities can be better harnessed. 

Focused government policies and assistance will turn some of those opportunities into reality, playing a crucial role in our covid economy.  

Following the Business Expo, a report will be provided to Government with ideas and recommendations from the manufacturing sector.