1. The importance of manufacturing to the New Zealand economy

2. Manufacturing has been growing strongly in recent years

3. And New Zealand manufacturing is performing better than its peers on the PMI measure

4. Manufacturers are expanding to boost capacity

5. Manufacturing has stabilised at around 10-11% of the New Zealand economy. Manufacturing accounted for $22.6 billion of real GDP in 2015.

6. The relocation of manufacturing activity to developing economies is a long term, structural trend affecting most advanced economies

7. Manufacturers are using more capital to help workers

8. Manufacturing remains an important employer in New Zealand, providing almost 250,000 jobs for Kiwis (14% of all jobs)

9. Manufacturing plays a key role in supporting regional economies, accounting for up to 17% of jobs in regions such as Taranaki and Southland

11. Manufacturing pumps over $12 billion in wages into Kiwi households each year…

12. …and making a big impact on regional incomes

13. Median weekly earnings in manufacturing are $959, compared to $882 for the economy as a whole

14. Manufacturers continue to struggle to find skilled and unskilled labour, so there are plenty of job opportunities available in the sector

15. The nature of manufacturing employment in New Zealand is changing over time

16. Non-food manufacturing contributes about $12 billion to our export revenue

17. Non-food manufacturing covers a diverse set of exporting firms

18. A range of factors pose challenges to manufacturers’ export expansion plans

19. Manufacturers invested $450 million in R&D last year in a range of sectors

20. Manufacturers invest in R&D primarily to gain entry into new markets, or to maintain and improve their position in the market

21. And because many recognise they are behind the curve in terms of best practice technology

22. 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

23. Manufacturers’ innovation is hampered by development costs and human capital constraints

24. Manufacturers’ see challenges with transport infrastructure, local government regulation and finding the right skilled staff

25. 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 maintain/improve competitiveness