From The Year in Review, NZ Manufacturer magazine, December issue.

 

 By Hon Chris Penk, Minister for Small Business and Manufacturing

As 2025 draws to a close, it’s a good moment to reflect on a year of resilience and progress for New Zealand’s manufacturing sector. The year brought challenges, but there is much to celebrate, and I’m proud to represent a sector that spans so many different industries.

Manufacturing is at the heart of our economy. It’s the petroleum processor in Taranaki, the wood miller in Rotorua, the food and beverage producer in Hastings, the metal fabricator in Hamilton, the chemical technician in New Plymouth, the machinery engineer in Christchurch, and the equipment assembler in Dunedin that we have to thank.

The sector employs more than 220,000 people, generates roughly 8 percent of GDP, and accounts for 60 percent of our exports. Over the past year, export growth has been strong, reflecting the dedication and innovation of manufacturers across the country.

One highlight for me was hosting the first Minister for Manufacturing Awards at SouthMACH in Christchurch in May, supported by Advanced Manufacturing Aotearoa.

These awards celebrated leadership and creativity, with 38 entries narrowed to 16 finalists across four categories. It was a fantastic opportunity to recognise excellence and connect as an industry.

More recently, I have been inspired by Kiwi manufacturers winning awards at regional, chamber, and national business events. Gallagher New Zealand Trade and Enterprise received the Supreme Award at the International Business Awards. RML Machinery in the Waikato, AROTEC Diagnostics Limited in the Hutt Valley, and United Machinists in Dunedin each earned top honours in their regions.

These successes show how manufacturers are fueling regional prosperity, boosting our competitive edge, and showcasing worldclass expertise. Many parts of the sector are not standing still; they are growing and shaping the future in innovative ways.

Collaboration and practical solutions are driving this progress. Advanced Manufacturing Aotearoa’s Earn as You Learn pilot demonstrates what is possible when industry, educators, and government work together. In Waikato, completion rates exceeded 80 percent, graduates are already employed, and plans are underway to expand the programme to Wellington and other regions. Initiatives like this address skills shortages and strengthen the manufacturing base.

Looking ahead, the Government’s Going for Growth agenda focuses on creating conditions for manufacturers and small businesses to succeed. It rests on five pillars:

• Innovation, Technology and Science: with expanded funding for the NZ Product Accelerator and initiatives to help manufacturers modernise and compete globally
• Developing Talent: through immigration Green List changes, residency pathways for trades, an Industry Skills Board, and programmes like Earn as You Learn and vocational pathways
• Promoting Global Trade and Investment: using InvestNZ, the Active Investor Plus visa, trade missions, and work to remove barriers to market access
• Infrastructure for Growth: including energy reforms, the Wood Energy Strategy, the National Infrastructure Plan, and Resource Management Act reform to give businesses confidence to invest
• Competitive Business Settings: through the Investment Boost, allowing businesses to expense 20 percent of new asset costs, and procurement changes that encourage government investment in Kiwi companies.

These initiatives are helping manufacturers innovate, grow, and compete on the global stage. The groundwork laid in 2025 now sets us up for a strong year ahead, and the outlook for 2026 is positive.

As we move into a well-earned break over Christmas, I want to thank every manufacturer, business owner, and worker who has kept driving the sector forward. Your dedication is building a stronger, more competitive New Zealand. The Government will continue to stand alongside you, supporting a productive economy where manufacturing delivers high-quality jobs and lifts living standards.

Ngā mihi nui, Merry Christmas, and best wishes for the year ahead.