A plan to accelerate the growth and transformation of New Zealand's advanced manufacturing sector was launched at Temperzone in Auckland on Monday by Economic Development Minister Stuart Nash.

The Advanced Manufacturing Industry Transformation Plan - ITP - is one of eight ITPs created to increase productivity and performance in key sectors of the economy.

'The advanced manufacturing sector has significant untapped potential to increase productivity and high wage jobs, and to support the transition to a globally competitive, low emissions economy. This plan sets out how that can be achieved,” says Nash.

'The Government is focused on the issues in front of New Zealanders right now – cost of living and recovering from Cyclone Gabrielle. These plans set out how we can transform industries by increasing innovation and productivity, and will drive higher wages and living standards in a non-inflationary way.

'This plan will also strengthen our regions – including regions severely impacted by recent extreme weather."

Nash says advanced manufacturing accounts for 10 per cent of NZ's economy and jobs and 73.5 per cent of goods exports.

"Almost half of these jobs are in regional New Zealand," says Nash. 'There is also overwhelming sector support for urgent action to increase capital investment in advanced manufacturing and to develop and attract a diverse high-skill high-wage workforce.

'As a first step, the Government has committed $30 million to implement a number of immediate actions identified in the Plan. This includes $3.65 million for company-specific advice on adopting advanced technologies and processes, $4 million to upskill manufacturing workers in digital skills, and $2.9 million for company-specific support to achieve circular low-emissions manufacturing.”

Brett O'Riley, Chief Executive of the Employers and Manufacturers Association and Co-Chair of the Advanced Manufacturing ITP Steering Group says the strong partnership approach to the plan will be key to its ongoing success.

He says that by continuing to work together, we can build world class advanced manufacturing capability in our New Zealand businesses, increasing productivity and lifting both incomes and profits.

That sentiment is echoed by Rachel Mackintosh, fellow Co-Chair of the Advanced Manufacturing ITP Steering Group and Vice-President of the New Zealand Council of Trade Unions Te Kauae Kaimahi and Assistant National Secretary of E Tū.

She says that the ITP will help transform the industry so that people will choose to work in advanced manufacturing for generations to come, and that New Zealand has the opportunity to harness the creativity of the diverse manufacturing workforce to develop a sustainable industry, where people can build their skills and enjoy decent work and decent wages.

The Advanced Manufacturing Industry Transformation Plan was launched by Stuart Nash on a visit to Temperzone, an air conditioning manufacturer based in South Auckland.

The Plan identifies six priority areas to accelerate transformation and growth:

1. increasing investment in advanced technologies and processes to lift productivity and wages
2. developing and attracting a diverse high-skilled high-wage workforce
3. creating a leading sustainable circular net-zero emissions sector
4. improving understanding and perceptions of advanced manufacturing
5. making innovation, R&D and science work for advanced manufacturing
6. enhancing global connectivity and opportunities.

The Advanced Manufacturing ITP covers all manufacturing in New Zealand, including both primary-sector and non-primary sector manufacturing. 'Advanced” manufacturing refers to the use of modern technologies, processes and business practices to improve products or manufacturing processes rather than whether the final products are high-tech.

New Zealand's advanced manufacturing sector:

· employs 10.7 per cent of the workforce (248,400 people),

· accounts for 10 per cent of GDP ($24.1 billion), 73.5 per cent of goods exports ($44.5 billion), and 30.5 per cent of business expenditure on research and development ($825 million),

· is the second largest employer of Māori and Pacific peoples,

· is important for the economy, jobs and communities in both regions and cities.

There are eight Industry Transformation Plans at different stages of development and implementation:

· Agritech – released in July 2020 with public consultation underway on a refreshed vision and priorities for its second stage

· Construction – released in April 2019, with a second stage released in July 2022

· Digital Technologies – due for release by the end of March 2023

· Fisheries – being developed by a joint government and industry leadership group

· Food and Beverage – public consultation underway

· Forestry and Wood Processing – released in November 2022

· Tourism – A Better Work Action Plan was released on 1 March 2023, with work underway on the next stage, the environment action plan.