Graduate Opportunities

The manufacturing industry in New Zealand is large and diverse. Major sectors within the industry include metal product, machinery and equipment, food and beverage, textile, clothing, footwear and leather goods.

Significant technological changes have occurred in all sectors within the industry over the last decade, as companies develop more efficient and diverse methods of processing and packaging products. Training has also become increasingly important as workers need to have the skills to work with emerging technologies. Two major influences on this sector are the strength of the economy and business confidence.

Metal product, machinery and equipment / Whakanao Hua Maitai, Purere, Utauta

Manufacturing in New Zealand showed modest growth in 2007, but there was significant activity within the metal product sector. While the machinery and equipment sector only reported a 4.9 per cent increase in sales over 2006, the metal products sector was a strong performer showing 12.2 per cent growth (Economic Survey of Manufacturing, June 2007). The continuing demand for new housing and industrial space is likely to keep the growth steady over the next few years. But while the domestic market is strong, exporters are continually concerned by the strong New Zealand dollar.

In terms of employment in these sectors, technological advances make metal manufacturing more productive, so there is a decline in lower skilled production process jobs. But there is a skill shortage for technically skilled workers, such as equipment maintenance system and systems control staff, especially in the Auckland and Canterbury regions (Statistics New Zealand).

Food and Beverage / Whakanao Kai - Inu

Food and beverage manufacturing is a major sector in New Zealand, producing almost half of the country’s exports and contributing to 5 per cent of GDP (gross domestic product). Dairy and meat products are the major contributors to the sector. With annual exports of $NZ6.4 billion, the dairy industry is New Zealand’s biggest export earner and made up 21 per cent of the value of NZ’s total merchandise exports in the year ending 31 December 2004 (NZ Official Yearbook 2006).

Ninety per cent of New Zealand’s dairy products are exported. Meat is the country’s second largest food export, making up 16 per cent of New Zealand’s total export earnings. 91 per cent of lamb, 89 per cent of mutton and 82 per cent of beef produced in NZ were exported in the year ending 2005. NZ is a major exporter of sheep meat, accounting for 55 per cent of the world export trade (NZ Official Yearbook 2006).

New Zealand produces a wide range of beverages for the domestic and export markets, including wine, soft drinks, fruit juices, spirits, beers, teas, fruit wines and water. The beverages industry directly employs 40,000 people nationwide, with a further 100,000 indirectly employed.

New Zealand’s wine industry has grown considerably in the last decade. Since 1990, wine exports have increased from $18.4 million to $510 million in 2006. Since 2005, wine export sales have exceeded local sales, and 54 per cent of wine produced in 2006 was exported.

Textile, Clothing, Footwear and Leather Goods / Whakanao Pueru, Kakahu, Hu, Kirikau

Much of the New Zealand textile, clothing, footwear and leather goods manufacturing industry is made of small, owner-operated companies with turnover of less than $2 million. These companies predominantly cater to export markets, which provide a majority of their earnings. Australia is the main export market for textiles, carpet, footwear and apparel, followed by the USA, Hong Kong, the United Kingdom and Fiji. In 2003-04 these markets accounted for 92 per cent of exports. New Zealand has also achieved export growth in markets as diverse as Germany, Japan and South Korea.

Growth in the industry will depend in part on the ability of businesses to develop quality

goods for niche markets. Businesses in the sector are increasingly collaborating with scientists to improve the quality of raw materials.

One of the main issues that may affect future growth of the industry is the shortage of multi-skilled people with production, pattern making and machining skills. There is also a lack of industry courses that give students more than basic sewing skills. Many courses focus on the design aspects of the apparel industry, where employment opportunities in New Zealand are limited. As a result some businesses lose orders because they do not have the staff to help them meet the demand.

Significant stats

• New Zealand’s dairy industry earns over 18 per cent of the country’s total export earnings
• New Zealand is the eighth largest milk producer, accounting for 2.2 per cent of world milk production
• Dairy manufacturing employs 10,320 people in New Zealand; meat production employs 24,230
• Ninety-five per cent of the milk produced in New Zealand is exported and dairy accounts for approximately 20 per cent of New Zealand’s merchandise exports
• New Zealand is the second largest wool exporter in the world, with over 28 per cent of the market
• In 2006, New Zealand’s three biggest export crops were kiwi fruit, wine and apples

Statistics sources: Statistics New Zealand, NZ Ministry of Agriculture and Forestry, Meat and Wool New Zealand

Except where indicated, this profile is based on edited extracts from www.careers.govt.nz.