Manufacturing Challenges

1
Manufacturing Challenges Opportunities for our
Region

• Keith Smith
• GM Flight Plastic Packaging
• and
• V.P. Manufacturing - EMA Central

2
Positive Context for NZ Manufacturing Despite
China

• MED Report in 2007 - The manufacturing sector is
  healthy overall with some sub-industries (in
  particular the food and beverage industry)
  experiencing good growth.
• Between 2000 and 2006
• Manufacturing's contribution to GDP grew by 12.
• The number of manufacturing firms increased 7.
• 31,870 new manufacturing jobs were created or an
  increase of 14

3
Employment by Manufacturing Other
SectorsHousehold Labour Force Survey - Dec 2008
Largest Sector RANK TOTAL JOBS
Wholesale Retail 1 22.7 502,100
Business/financial services 2 14.8 327,200
Manufacturing 3 12.2 269,100
Other services 4 10.9 240,400
Health community 5 9.1 200,800

Agriculture Forest Fish 8 6.9 151,600
New Zealand 2,207,200
4
Manufacturing Jobs end 2008 Districts/RegionDOL
Regional Industry Snapshot
DISTRICTS RANK JOBS TOTAL JOBS
Region 6 16,480 6.8 242,700
Lower Hutt 6,310 13.8 45,850
Upper Hutt 1,220 9.9 12,280
Porirua 970 6.4 15,240
Kapiti 850 6.9 12,325
Wellington 5,310 3.8 140,725

New Zealand 1 243,560 12.4 1,969,080
5
Manufacturing Job Decline Exaggerated
DISTRICTS DECLINE MFTG. JOBS
WLG region -1.2 193 16,480
Lower Hutt -1.O 66 6,310
Upper Hutt -4.6 59 1,220
Porirua -1.5 15 970
Kapiti -0.6 5 850
Wellington -0.8 48 5,310

New Zealand 1 12.4 243,560
6
Cyclical Nature of Business - Manufacturing
7
Challenges Opportunities Ahead

• The Region
• Two Key Manufacturing Strengths to Build Upon
• Food Beverage Processing
• Specialised Manufacturing
• Both with Domestic Export Markets

8
Challenges Opportunities Ahead

• Individual Manufacturers
• Productivity
• Robustness
• Financial Stability Cash Flow
• Maintaining Capability
• Look for Opportunities Arising in the Current
  Market

9
Manufacturinghas a good and long term future

• Large Employment
• High Value-Add Export Revenue
• Still a key contributor to the Wellington Region
• A vital economic resource for New Zealand