By Jane Finlayson; Head of Advanced Manufacturing; EMA

A lot has changed in recent months. Not only have we had a change of government, and with it a change in policy direction, but we have also seen the establishment of Advanced Manufacturing Aotearoa (AMA).

Led by Catherine Lye, AMA is tasked with working with key sector partners ­- including unions, researchers, educational institutions, industry organisations, and Māori and Pacific manufacturers – to gather information and supply feedback on the practical steps that can be taken to further develop the manufacturing sector.

The AMA is an important initiative that we hope will be supported by the new government. It is industry-driven and independent, representing manufacturers across Aotearoa New Zealand. This positions it to deliver enormous benefit to the manufacturing sector at a scale not realised previously.

The EMA is proud to support the AMA, alongside our other partners across the country. As the newly appointed Head of Advanced Manufacturing at the EMA I am looking forward to working closely with Catherine and the AMA to advance the interests of the manufacturing sector.

Since taking up my new role, I have enjoyed the opportunity to attend regional manufacturing action group meetings, in Waikato, Northland, Bay of Plenty and Auckland and I’ve met with a wide range of innovative manufacturers who have adopted technology to enhance their businesses and improve productivity.

Clearly the past year has been challenging for many manufacturers. The global economic slowdown, rising costs, supply chain constraints and critical skills shortages have all combined to create a difficult environment for the sector.

This has been reflected in the steady decline of the BNZ – BusinessNZ Performance of Manufacturing Index (PMI), which has sat below 50 since March. This indicates manufacturing activity in New Zealand has been contracting throughout much of the year.

This situation isn’t unique to New Zealand. Manufacturing has been struggling globally as demand for consumer goods has fallen in response to central banks tightening monetary policy around the world.

But there is also plenty to be enthusiastic about. With the right support and policies, manufacturing can be the driver of our economic recovery. That is why the EMA welcomed the appointment of Andrew Bayly as the inaugural Minister of Small Business and Manufacturing. We are hopeful that appointing a Minister of Manufacturing signals the incoming government’s intent to support New Zealand’s manufacturing base.

Practical steps the new government could take include looking at the R&D Tax Credit system so that it better recognises incremental improvements to existing technologies, and allowing for more rapid rates of accelerated depreciation for technology, hardware and software so that manufacturers are incentivised to invest in the newest technology.

This is important because robotics, digitisation, A.I., and augmented reality and other Industry 4.0 technology, are all having a profound impact on manufacturing processes. We need to support and encourage New Zealand manufacturers to embrace this technology so that we not only remain competitive, but also reap benefits around reduced emissions and waste, better health safety and wellbeing outcomes, and more quality jobs for kiwis.

EMA is already involved in supporting the transition to use of more advanced manufacturing practices with our partnering with Callaghan Innovation, BECA and LMAC to deliver the Industry 4.0 Demonstration Network, which is a series of events that highlights how manufacturers can enhance their productivity and improve their manufacturing processes.

If you haven’t had the opportunity to attend a demonstration network event, be sure to visit www.industry4.govt.nz to find an upcoming event suited to your needs in the new year.

One thing that will be important as we look to the future is how do we support manufacturers to have access to the skilled staff they will need to take advantage of the latest technology. While the critical skill shortage that many manufacturers were experiencing earlier in the year is beginning to wane as the economy slow, this is likely to be only temporary.

Changing demographics and a global shortage of skilled workers means that it is more important than ever for manufacturers to hold onto and develop their skilled workers. That means providing a positive workplace culture.

To help employers do this, the EMA is excited be partnering with Best Places to Work, an innovative new programme that aims to support New Zealand to be the best place to work in the world.

Through our partnership, we want to recognise and celebrate those Kiwi businesses that are delivering extraordinary employee experiences. This is important because we know an engaged workforce is a productive workforce.

Best Places to Work is built on three streams. The first is an employee-led survey that will provide employers with an in-depth analysis of their organisation’s employee experience. This will be followed by the Best Places to Work Awards, which will celebrate the best in New Zealand across a range of categories.

Finally, there will be a series of masterclasses and workshops, bringing together industry experts, leaders and award winners to share their knowledge and experience.

We would encourage all manufacturers to get involved in Best Places to Work so they can showcase some of the incredible work that is happening in the sector.  It would be fabulous to have a high proportion of manufacturers on the podium when final judging is complete!

To learn more, simply visit www.bestplacestowork.nz.