Advanced Manufacturing

The Government has closed the Industry Transformation Plan programme.

This webpage will be updated soon.

The Advanced Manufacturing Industry Transformation Plan (ITP) has been co-created and is co-owned by business, unions and workers, government, Māori, Pacific peoples and wider stakeholders. The plan will accelerate the growth and transformation of Aotearoa New Zealand’s advanced manufacturing sector.

White text on orange background reads: Advanced Manufacturing Industry Transformation Plan. Four images from advanced manufacturing sectors are beneath the text.
Text on orange background reads: Co-created by Business, Unions and workers, government, Māori, Pacific peoples and wider stakeholders.

Advanced Manufacturing Industry Transformation Plan launched on 13 March 2023

The Advanced Manufacturing Industry Transformation Plan provides an overview of Aotearoa New Zealand’s advanced manufacturing sector and an Action Plan to accelerate its growth and transformation. A summary and the full ITP are available below.

The Advanced Manufacturing Industry Transformation Plan was launched by the Minister for Economic Development, Hon Stuart Nash, on 13 March 2023 at Temperzone in Tāmaki Makaurau Auckland.

The launch included feature presentations by Steering Group Co-Chairs Brett O’Riley, Rachel Mackintosh and Paul Stocks.

You can watch a recording of the event below: 

What is Advanced Manufacturing?

The term “Advanced Manufacturing” is used in the ITP to cover all manufacturing in Aotearoa New Zealand. This includes both primary and non-primary sector manufacturing. The term “advanced” refers to the use of modern technologies, processes and business practices in the manufacturing process rather than whether the final products are high-tech. This Advanced Manufacturing ITP therefore covers the making of products as diverse as computer chips and branded chocolate.

Implementation and how to get involved

Implementing the plan requires ongoing commitment from all partners. The plan’s Steering Group identified a subset of actions that are being delivered first. Funding for these comes from the initial $30 million government investment to deliver the first stages of the Advanced Manufacturing ITP Action Plan. 

Since the plan launched in March 2023, work has begun on 7 “early win” actions:

  1. Tripling the “Smart Industry Readiness Index” company-specific assessments for adoption of advanced technologies and processes from 30 to 100 companies annually,
  2. Developing a new initiative to provide in-depth company-specific advice on adopting advanced technologies and processes linked to productivity, upskilling, and net-zero manufacturing. This will be piloted with 5 companies in Year 2, with the option to expand to 30 companies from Year 3
  3. Creating a second advanced technologies mobile showcase and increasing demonstration events to 100 per year from Year 2 onwards
  4. Publishing an inaugural “Advanced Manufacturing” Technology Investment Network (TIN) report in September 2023
  5. Reviewing the New Zealand Product Accelerator to plan for possible adjustment and expansion; and
  6. Researching perceptions of the advanced manufacturing sector as a benchmark to measure success of subsequent actions to improve perceptions.
  7. Piloting a global advanced manufacturing study tour with 10-15 companies targeting the United States in Year 1, with 2 additional tours planned for Year 2.

Another 7 actions will be underway soon:

  1. Introducing 10 “ready to go” advanced manufacturing circular economy demonstration projects showcasing circular success, co-funded with business. This also supports: Emissions Reduction Plan 9.4 – Support Business to Move to Circular Economy Models(external link).

  2. Upskilling 200 advanced manufacturing businesses per year to embed circular economy principles. This also supports: Emissions Reduction Plan 9.4 – Support Business to Move to Circular Economy Models(external link).

  3. Creating an advanced manufacturing sector decarbonisation programme with the Energy Efficiency and Conservation Authority (EECA). This also supports: Emissions Reduction Plan 11.4.1 – Decarbonise Aotearoa Industries(external link).

  4. Creating a comprehensive map of the emissions and waste profile of the sector. This also supports:
    Emissions Reduction Plan 11.4.1 – Decarbonise Aotearoa Industries(external link).

  5. Expanding the Digital Skills for Manufacturing micro-credential to 1,000 workers per year;

  6. Actively engaging with Māori businesses in the manufacturing sector and seeking Māori companies to be involved with the ITP to design specific initiatives to support pathways for Māori rangatahi, workers and businesses to succeed in advanced manufacturing.

  7. Designing and testing the Pacific Peoples-led pilot over three years to address systemic labour market barriers for Pacific peoples in the manufacturing sector.

How you can get involved

Manufacturers throughout Aotearoa, from one-person operators to the very largest businesses, have the opportunity to contribute to transforming our advanced manufacturing sector. You can:

  • Read the ITP and think about initiatives you could implement in your business or workplace
  • Reach out to the steering or implementation groups as they are formed
  • Let us know you would like to be kept informed by emailing info@advancedmanufacturing.nz

Steering or implementation groups

The importance of advanced manufacturing for Aotearoa New Zealand

Advanced manufacturing is vitally important for Aotearoa New Zealand and a major contributor to the economy, jobs and communities.

It is a broad and diverse sector that makes up 10% of the economy ($24.1 billion of GDP)

This table illustrates the contribution of the 7 advanced manufacturing subsectors to New Zealand’s manufacturing GDP:

Graph advanced manufacturing GDP by subsector, 2020 ($millions)

Advanced manufacturing GDP by subsector (2020) ($millions)

This chart summarises the respective growth rates of the 7 advanced manufacturing subsectors over the last 5 years:

Compound annual growth rates for advanced manufacturing subsectors

Compound annual growth rates for advanced manufacturing subsectors (2015 to 2020)

The sector is important for both regions and cities

It employs 10.7% of the workforce (248,800 people) and is the second largest employer of Māori and Pacific peoples.

Map of New Zealand advanced manufacturing

Advanced manufacturing’s share of regional employment (2021)

Advanced manufacturing makes up a significant share of employment in regional New Zealand. For instance, it accounts for 16.8% of the Southland workforce, 16.3% of the Taranaki workforce, 15% of the Marlborough workforce and 13.1% of the Hawke’s Bay workforce.

Map of Auckland advanced manufacturing

Distribution of advanced manufacturing employment in Tāmaki Makaurau Auckland (2020)

Just over half of advanced manufacturing jobs are based in Tāmaki Makaurau Auckland, where the sector accounts for 9.1% of the economy. This map shows that the jobs are concentrated in the industrial areas in South and (to a lesser degree) West Auckland.

Improving the skills and wages in the advanced manufacturing sector through the ITP will have positive impacts on communities throughout regional and urban Aotearoa New Zealand.

The sector is our largest contributor to exports

Advanced manufacturing accounts for 73.5% of goods exports and just over half of total goods and services exports ($44.5 billion).

Manufactured exports by subsector 770px

Manufactured exports by subsector (NZ$ billions, year ended February, 2010 - 2020)

The largest destination markets for non-primary sector manufactured goods are Australia, the United States, China, Japan, United Kingdom, Korea, Singapore, Canada and Germany. In contrast, for primary sector manufactured goods, China is the largest export market.

Leading export destinations for manufactured goods by broad industry group Year ended Feb 2020 770px

Leading export destinations for manufactured goods by broad industry group (2020)

Why we need an Industry Transformation Plan

Advanced Manufacturing has been prioritised for an ITP due its scale and the untapped potential to significantly increase productivity, higher-skilled, higher-wage jobs and a globally competitive low-emissions sector.

Two trends provide an opportunity to accelerate the growth and transformation of the sector over the next 20 years:

  1. Advanced manufacturing is undergoing a fundamental shift through the application of advanced technologies and processes.
  2. More focus is being placed on economic activity that is sustainable, circular and low emissions.

Aotearoa New Zealand’s advanced manufacturing sector can adapt and thrive in this changing landscape. Transformation, however, will require the right action because:

  • Currently, the sector has relatively low capital investment in advanced technologies and processes compared to international benchmarks. This correlates with relatively low productivity by international standards.
  • While the annual median wage in advanced manufacturing is 10.1% above the national level more can be done to grow high-skill high-wage jobs.
  • There is significant opportunity to grow investment and adoption of advanced technologies and innovation to boost the advanced manufacturing sector’s productivity. If this is combined with other ITP initiatives it will lead to higher wages.
  • The sector’s transformation will require action to upskill existing workers. There is an opportunity to create high-wage careers in advanced manufacturing, offering great workplace cultures and excellent long-term prospects for a wider diversity of workers.
  • Advanced manufacturing employs a higher proportion of Māori and Pacific peoples than other industries, and benefits from a multi-ethnic workforce. More can be done however to build diversity and inclusion, including at leadership and ownership levels and by attracting women that make up only 30% of workers.
  • The sector’s future competitiveness must be underwritten by an ambition and actions to create a leading sustainable, circular and net-zero emissions sector.
  • To be globally competitive will require enhanced global connectivity.

Partnership is a driving principle

This Industry Transformation Plan is a joint project. Partnership is a driving principle and business, unions and workers, government, Māori, Pacific peoples and wider stakeholders have worked together to create this Plan.

Work on the Advanced Manufacturing ITP began in July 2020 with engagements with a range of stakeholders throughout Aotearoa New Zealand, including members of a Partnership Group, to understand the challenges and opportunities facing the sector and priorities to accelerate growth and transformation.

Since July 2021, sector representatives have participated in a Steering Group and 4 working groups to prepare the draft ITP.

There are 13 representatives from across the sector on the Steering Group which has 3 Co-Chairs:

  • Brett O’Riley (Chief Executive, Employers and Manufacturers Association)
  • Rachel Mackintosh (Vice-President of the New Zealand Council of Trade Unions Te Kauae Kaimahi and Assistant National Secretary of E tū)
  • Paul Stocks (Deputy Secretary, Ministry of Business, Innovation and Employment)

There are 44 sector representatives on the 4 Working Groups. These groups have identified key initiatives that would accelerate the growth and transformation of advanced manufacturing. The wider sector, Māori and Pacific Peoples refined and prioritised these initiatives during extensive public consultation in 2022.

Māori play an important role in Aotearoa New Zealand’s advanced manufacturing sector, that is the second largest employer of Māori and includes 870 Māori-owned businesses. The results of the ITP are intended to help create more high-skilled high-wage work opportunities for Māori as well as support Māori-owned and Māori-led advanced manufacturing businesses.

Pacific peoples are a key voice in this ITP, particularly given their significant historical and current contributions to the sector. The sector is the second largest employer of Pacific peoples accounting for 16% of the Pacific workforce. The ITP describes the history, aspirations, concerns and needs of Pacific peoples that are acknowledged as of key significance to the transformation of the sector.

10 government agencies are also involved:

  • The Ministry of Business, Innovation and Employment
  • Callaghan Innovation
  • Ministry of Education
  • Ministry for the Environment
  • Ministry of Foreign Affairs and Trade
  • New Zealand Trade and Enterprise
  • Te Puni Kōkiri
  • Ministry for Pacific Peoples
  • Ministry of Social Development
  • the Tertiary Education Commission
  • Hanga-Aro-Rau Workforce Development Council.

Steering group and working groups

Priorities and vision for transformation

The following 6 key priorities to drive growth and transformation of the advanced manufacturing sector have been identified:

  1. increasing investment in advanced technologies and processes to lift productivity and wages

  2. developing and attracting a diverse high-skilled and high-wage workforce

  3. creating a leading sustainable circular net-zero emissions sector

  4. making innovation, R&D and science work for advanced manufacturing

  5. improving the understanding and perceptions of advanced manufacturing

  6. enhancing global connectivity and opportunities

The ITP also identifies specific initiatives to drive transformation. These are included in an Action Plan along with measurable implementation actions over 1 to 3 years.

Collectively, these priorities and actions aim to achieve the sector’s long-term vision of:

Summary of the public consultation process

Over 700 people participated in public consultation to prioritise and refine the draft ITP in 2022 including through:

  • 12 regional workshops, held from Whangarei to Invercargill
  • 13 advanced manufacturing factory site visits
  • 6 thematic workshops
  • 60 written submissions
  • hui Māori
  • dedicated Pacific peoples engagement.

Regional workshops

Regional workshops were held in the following locations and had 240 participants:

Location Date Participants
Whangarei 7 June 2022 10
Auckland – Henderson 8 June 2022 18
Auckland – East Tamaki 8 June 2022 31
Hamilton 9 June 2022 14
Tauranga 10 June 2022 11
New Plymouth 21 June 2022 24
Napier 13 June 2022 14
Wellington 14 June 2022 25
Nelson 20 June 2022 11
Christchurch 15 June 2022 51
Dunedin 16 June 2022 18
Invercargill 17 June 2022 13
Total 240

Online thematic webinars

Recordings of the online thematic webinars can be viewed via the following links. There were 215 participants across the 6 sessions:

Webinar recording Date Participants
Watch: Increasing investment in advanced technologies and processes to lift productivity and wages(external link) — Vimeo 22 June 2022 31
Watch: Making innovation, R&D and science work for advanced manufacturing(external link) — Vimeo 29 June 2022 41
Watch: Attracting and developing a diverse high-skilled high-wage workforce(external link) — Vimeo 30 June 2022 36
Watch: Creating a leading sustainable circular net-zero emissions sector(external link) — Vimeo 5 July 2022 54
Watch: Enhancing global connectivity and opportunities(external link) — Vimeo 6 July 2022 26
Watch: Improving perceptions of advanced manufacturing(external link) — Vimeo 7 July 2022 27
Total   215

Workers’ engagement

The Advanced Manufacturing ITP Steering and Working Groups included a strong worker voice, involving experienced workplace union delegates and their union representatives. The New Zealand Council of Trade Unions’ submission on the Advanced Manufacturing ITP captures extensive engagement carried out with worker representatives and highlights the ongoing engagement with key unions with an active stake in advanced manufacturing to ensure the Advanced Manufacturing ITP is addressing the long-term interests of working people.

Hui Māori

Māori already play an important role in Aotearoa New Zealand’s advanced manufacturing sector. The sector is the second-largest Māori employer (41,900 workers representing 12.7% of the Māori workforce). The 870 Māori-owned manufacturing businesses have the third-highest average operating margin of all Māori-owned businesses.

The ITP identifies opportunities for Māori workers, businesses, rangatahi and communities through the transformation of advanced manufacturing and to take steps to create more high-skilled and high-wage work opportunities for Māori and support Māori-owned and Māori-led advanced manufacturing businesses.

Pacific peoples engagement

Pasific peoles input is critical as the advanced manufacturing sector is the second largest employer of Pacific peoples (20,900 workers representing 16% of the Pasifika workforce). There are also approximately 130 Pasifika-owned advanced manufacturing businesses.

A dedicated Pacific peoples engagement was held on Monday 25 July at Te Oro in Glen Innes, Tāmaki Makaurau Auckland. The engagement identified opportunities and refined actions for Pacific peoples as workers, businesses and communities through transformation of the advanced manufacturing sector.

Written submission

60 written submissions on the Draft ITP were received. Our thanks to all those that provided submissions that have informed the refined and prioritised final Action Plan.

White text on orange background reads "Advanced Manufacturing Industry Transformation Plan". Underneath text are 9 photos showing different sectors of advanced manufacturing.
Last updated: 21 December 2023