Manufacturing

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

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.

(For more information see the Agriculture industry profile).

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 materials.

One of the main issues that may affect future growth 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 are limited.

Industry at a glance:

  • 95% of milk produce is exported
  • 45% of global carpet wool production
  • 18% of total export earnings through dairy industry
  • 24,230 employed in meat production.

*Except where indicated, information and statistics for this profile drawn from the following sources: www.careers.govt.nz; Statistics New Zealand; NZ Ministry of Agriculture and Forestry; and Meat and Wool New Zealand.