Catherine Lye, EMA’s Head of Advanced Manufacturing & Export Communities

The Advanced Manufacturing Industry Transformation Plan (ITP) recognises the essential role manufacturing plays in the New Zealand economy, for jobs and communities.

The draft plan, released for public consultation in June 2022, attracted hundreds of participants to workshops and 60 written submissions that helped identify some key priorities for the ratified plan.

“Increasing investment in advanced technologies and processes to lift productivity and wages, and improving the understanding and perceptions of advanced manufacturing to attract more people into the sector will be the initial focus based on the feedback received,” says Brett O’Riley, EMA Chief Executive and Co-Chair of the Advanced Manufacturing ITP Steering Group.

Manufacturing plays an important role in creating jobs and is the second largest employer of Māori and Pacific peoples in the country.

The plan identifies ways to help manufacturers acquire more skills and embrace the low-carbon, sustainable economic growth it offers.

“One of the keys to accelerating growth will be the investment in new plant, new technology, and new skills, something the EMA will continue to work with the Government on,” Mr O’Riley says.

Rachel Mackintosh, fellow Co-Chair of the Advanced Manufacturing ITP Steering Group and Vice-President of the New Zealand Council of Trade Unions Te Kauae Kaimahi and Assistant National Secretary of E Tū, agrees.

“We want to transform the industry so that people will choose to work in advanced manufacturing for generations to come. We have the opportunity to harness the creativity of the diverse manufacturing workforce to develop a sustainable industry, where people can build their skills and enjoy decent work and decent wages. To do that we need cooperation across workers, employers, communities, and the government,” she says.

The ITP brings together a raft of elements – skills, sustainability, carbon neutrality and competitiveness – to plot a path to the future of advanced manufacturing.

“There is an ongoing commitment from business to realising the vision for the ITP and we will be forming a new group, Advanced Manufacturing Aotearoa, to continue to bring together the key parties and leaders to drive the ITP, along with regional groups to ensure there is localised commitment and action,” says Mr O’Riley.

“Developing this plan has been a joint project. By continuing to work together, we can build world class advanced manufacturing capability in our New Zealand businesses, increasing productivity and lifting both incomes and profits.”

It identifies six specific priorities to drive transformation along with measurable implementation actions over one to three years.

The aim of the ITP is to create a thriving Aotearoa New Zealand advanced manufacturing sector of world-class creators, innovators and makers delivering quality products, sustainable solutions and intergenerational wellbeing.

Mr O’Riley says: “We know through COVID there was a fresh appreciation of the contribution that advanced manufacturing made to the NZ economy and people’s livelihoods.

“We need to build on that, and the ITP sets a clear path to achieving the growth and productivity gains our country needs to compete on a global scale.”

The latest GDP figures have further highlighted the need for increased investment in manufacturing, and the accelerated depreciation scheme is the logical next step.

The ITP to help manufacturers develop advanced capability addresses falling GDP in the sector. Specifically, more investment in software, hardware and skills, stimulated through an accelerated depreciation scheme, would help generate low-carbon, sustainable economic growth.