Future Focus on Export Products
Comment by Heavy Engineering Research Association Director Dr Wolfgang Scholz The Heavy Engineering Research Association has just put a funding proposal to Government’s research funding agency the Foundation for Research Science and Technology (FRST) aimed at supporting the New Zealand Metals Industry in becoming more productive and developing export opportunities. This new proposal comes at a time when Government and industry advisor’s stress the need for companies to join Government in increasing investment in research and technology (R&D) if we want the New Zealand economy to transform and create wealth funded on knowledge-based, high value-added and profitable industries. Government Science Advisor, Sir Peter Gluckman, outlined recently at a medical technology conference that our industry spending on R&D is at best 0.4 % of GDP, while in more advanced nations, industry spends as much as 2% of GDP on research and technology. However, he noted that New Zealand’s Government fares much better and is the only nation where Government RS&T spending is actually higher than industry’s with 0.5-0.7%, which is close to the average of the advanced nations’ 1% for government-funded RS&T. He also noted that the medical technology sector – to which our metals industry makes a significant contribution through tool making, casting or general metals-based manufacturing – has shown resilience despite the global financial meltdown and is predicted to be a billion $ industry within the next 5 years. In 2008, metals-based products – excluding steel- and aluminium-based products of our two steel companies and NZAS – provided export earnings alone of over $560M. I am convinced that with the right leadership and incentives in place, our strategically important industry will be able to crack the billion dollar export mark as easily as medical equipment exports are projected to. We have an amazing depth of capabilities due to our […]