Manufacturing a key player in our export story
From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz
NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu
Chris Penk, Minister for Small Business and Manufacturing
Starting 2025 by taking on the role of Minister for Small Business and Manufacturing has been an exciting time. As readers of NZ Manufacturer will be well aware, these areas lie at the heart of the New Zealand economic engine.
Manufacturing is a key player in our export story and the vast majority of NZ businesses are “small” (with 97% having fewer than 20 FTE employees).
So let me start by saying how grateful I am to everyone in the sector who is producing the goods, quite literally(!), to ensure New Zealand’s economic growth.
My initial approach is to listen carefully to what manufacturers see as their challenges and opportunities. This will provide a countrywide perspective, on top of what I hear from constituent businesses within Kaipara ki Mahurangi.
The area that I represent in northwest and the rural north of Auckland includes some significant industrial zones, so I appreciate manufacturing is a key enabler of employment and social cohesion in local communities.
My “starter for 10” would be making sure that manufacturing businesses can navigate bureaucratic roadblocks and – wherever possible – removing those roadblocks.
I have observed that the compliance burden is too high and doesn’t reflect a risk-based approach. Greater balance is needed, which is why smart regulation (as opposed to removing all regulation) is our watchword as a government.
Trade is another key pillar to aid growth, and it’s our ambition to double the value of New Zealand exports within a decade.
We’re getting on with signing new trade agreements across the globe – knowing the quality of our great Kiwi products will always be their own key selling point.
So far, one of the most pressing concerns I hear from manufacturers is workforce gaps. That’s why the Government has partnered with Advancing Manufacturing Aotearoa to launch an ‘earn as you learn’ pilot in Waikato.
This initiative connects high school students with local manufacturers to gain hands-on experience while earning a competitive wage and an NZ Certificate in Manufacturing Level 3.
It is fantastic to see educators and industry leaders working together to address challenges and provide young Kiwis with rewarding career pathways. While it is only one initiative, its success could provide a blueprint for other regions, and I look forward to seeing the progress these students make.
I recently visited Grayson Engineering in Wiri, Auckland, a recognised leader in steel fabrication. They’ve won multiple awards for excellence in steel construction and excel in workforce retention.
By offering English language classes to employees, they are not only investing in their staff but also improving their workers’ quality of life in New Zealand.
Some of their team members have been with them for over 15 years, and they also employ local apprentices.
Learning from industry leaders like Grayson Engineering is essential as, we the Government, work to address skill shortages and develop policies that support long-term workforce stability.
On a related note, I have been hearing that visa settings remain an area of frustration for manufacturers looking to bring in skilled workers, and addressing these challenges will require collaboration across Government.
Advocacy is a key part of my role, and I am committed to ensuring that the voices of manufacturers are heard at the decision-making table.
In summary, my focus as Minister is on breaking down barriers, fostering growth and ensuring this sector continues to thrive. I look forward to working closely with industry leaders, educators, and policymakers to realise our ambitions for manufacturing.
Contact the Office of Hon Chris Penk: chris.penk@parliament.govt.nz