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More tools in the toolbox for manufacturing

By Chris Penk, Minister for Small Business and Manufacturing

Being the Minister responsible for advocating for New Zealand’s magnificent manufacturers comes with the benefit of being welcomed into factories around the country for tours and meetings.

From racing car seats and top-grade pharmaceuticals to steel, bread, and plastic containers, there’s a wealth of products made right here in our backyard beyond what the average Kiwi could even imagine.

Time and again, when visiting these businesses, I hear two consistent messages: they need skilled workers to grow, and they need fewer obstacles when selling their world-class products internationally.

That’s why I’m proud to share two recent wins that directly respond to those calls and aim to give the manufacturing sector a real boost, helping it grow and build confidence—something very welcome amid the tough global and economic climate.

First, we’re tackling one of the most persistent challenges facing the sector: skills shortages. Welders, fabricators, machinists, panel beaters – these are the roles that keep factories running and businesses growing. Unfortunately, in too many regions, there simply aren’t enough people to fill them.

With thanks to my colleague, Immigration Minister Erica Stanford, I sincerely hope this pressure is about to ease. Starting in August, ten additional manufacturing and trades roles will be added to the Green List’s Work to Residence pathway.

Eligible migrants working in these roles will be able to apply for residency after just two years of experience with an accredited New Zealand employer.

This practical change will help fast-track the talent manufacturers need to keep moving. Whether it’s a vehicle painter in the Far North or a pressure welder in the deep south, these roles are crucial to daily operations, and the Government appreciates that bringing in the right people is crucial in providing the stability businesses need to stay productive.

Some readers will likely share my determination that we don’t lose sight of the importance of local recruitment. I believe the skilled labour shortage needs a relatively fast fix, however – one that can support a longer-term, industry-led solution.

When businesses have the skills they need, they’re better able to take on local apprentices and help train the next generation of Kiwi tradespeople. This is how we build a stronger, more resilient workforce over time, with a steady pipeline of skilled people entering the industry for years to come.

Alongside workforce development, we’re also focused on expanding New Zealand’s global footprint by strengthening international relationships. I’m excited to share a major step forward for our cosmetics and skincare manufacturers. Thanks to a smart new certification scheme announced by the Prime Minister in Shanghai, New Zealand-made health and beauty products can now be sold in stores across China – not just online.

This change removes a longstanding trade barrier and gives exporters a government-backed certification that meets Chinese regulatory requirements. That means faster, more credible access to a consumer market worth $200 billion and one of the fastest-growing in the world.

It also highlights the innovation, quality, and sustainability Kiwi businesses are known for. Our ban on animal testing remains firmly in place, and this blend of ethics and excellence continues to set New Zealand products apart.

These recent initiatives – like smarter immigration settings and expanded trade access – are part of our ongoing commitment to support manufacturers across New Zealand, whether they’re exporting cosmetics or building high-tech equipment. I understand how important it is for this sector to know it has the Government’s full backing.

And on that final note, while times have been tough for many in the past few years, I remain confident we can turn things around together.

The Government is working hard to strengthen the economy and create the conditions businesses need to feel secure and grow with confidence.

 

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28th July 2025

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