The importance of manufacturing to the New Zealand economy
The importance of manufacturing to the New Zealand economy Name of presenter Venue or event Date of presentation
Manufacturing has been growing strongly in recent years 2
And New Zealand manufacturing is performing better than its peers on the PMI measure 3 Manufacturers are expanding to boost capacity
4 Manufacturing has stabilised at around 10-11% of the New Zealand economy. Manufacturing accounted for $22.6 billion of real GDP in 2015.
5 The relocation of manufacturing activity to developing economies is a long term, structural trend affecting most advanced economies
6 Manufacturers are using more capital to help workers
7 Manufacturing remains an important employer in New Zealand, providing almost 250,000 jobs for Kiwis (14% of all jobs)
8 Manufacturing plays a key role in supporting regional economies, accounting for up to 17% of jobs in regions such as Taranaki and Southland
9 10 Manufacturing pumps over $12 billion in wages into Kiwi households each year
11 and making a big impact on regional incomes
12 Median weekly earnings in manufacturing are $959, compared to $882 for the economy as a whole 13
Manufacturers continue to struggle to find skilled and unskilled labour, so there are plenty of job opportunities available in the sector 14
The nature of manufacturing employment in New Zealand is changing over time 15
Non-food manufacturing contributes about $12 billion to our export revenue 16 Non-food manufacturing covers a diverse set of exporting firms
17 A range of factors pose challenges to manufacturers export expansion plans
18 Manufacturers invested $450 million in R&D last year in a range of sectors 19
Manufacturers invest in R&D primarily to gain entry into new markets, or to maintain and improve their position in the market 20
And because many recognise they are behind the curve in terms of best practice technology 21
Manufacturing firms innovate to improve productivity/revenue, understand their consumers better, gain market share or access new markets, and increasingly to improve health and safety standards 22
Manufacturers innovation is hampered by development costs and human capital constraints 23 Manufacturers see challenges with transport infrastructure, local government regulation and finding
the right skilled staff 24 Takeaways
Manufacturing has been subjected to huge structural changes in NZ and overseas, but is responding to the challenge Manufacturing accounts for $22.6 billion (11%) of the economy Non-food manufacturing contributes $12 billion of exports Manufacturing generates almost 250,000 jobs (14% of all jobs)
It pumps $12 billion of wages into Kiwi households each year The average manufacturing job pays $959 per week, compared to $882 for the economy as a whole Manufacturers invested $450 million in R&D last year to
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