Trevor Edwards, Managing Director of Superheat Ltd has been elected as the President of The Manufacturers’ Network (formerly NZMEA) at the Association’s 139th AGM.
The NZMEA signals an even stronger focus on supporting globally competitive manufacturers with the launch of a new nameWith the changing face of manufacturing and the increasing global opportunities advanced technologies offer, the NZMEA has introduced a new and simply stated name supported by a strong logo that reflects where it wants to take the industry into the future - The Manufacturers’ Network.
“We are hugely proud of our history, having supported manufacturers and manufacturing since 1879. But today the industry is different. With a global reach and growth opportunities relying more and more on collaboration, strong networks and an indepth knowledge of future trends, it was time our name reflected these values, clearly and simply, says Mr Dieter Adam, CE, The Maufacturers’ Network.
Today, manufacturing in New Zealand faces many challenges. Manufacturers need to hold their own and want to grow their business in an increasingly interconnected and highly competitive global environment. Whether it’s through exporting or competing with imports, it’s all about remaining globally competitive. To achieve that, manufacturers need support now more than ever.
“Manufacturers need a champion and an expert immersed in trends and opportunities who they trust so they can get on with running their businesses as competitively as possible, knowing we have en eye on the future. That’s where we fit in, says Adam.
“The Manufacturers’ Network represents the best of our collaborative spirit and smarts. We are a Network because we know that working together, and collaborating locally, allows us to compete globally, to stay up with - if not ahead - of trends, and to remain agile and efficient.
“We have deliberately chosen to use THE ahead of Manufacturers’ Network as it shows strength in what we do. Our focus is narrow and deep. We are THE Manufacturers’ Network, focused on supporting New Zealand manufacturers — the people behind the industry,” says Adam.
Manufacturing is the second highest contributor to GDP and we know that making a difference to this sector will make a difference to New Zealand and New Zealanders. Given this, the focus of The Manufacturers’ Network will be that of a specialist support network.
“I have recently returned from Hanover Fair, Germany, and built relationships there which will be invaluable going forward. Our networks aren’t just amongst the New Zealand industry but globally too.
‘There was a gap and we have made a commitment to filling it. As The Manufacturers’ Network, we are the experts in manufacturing,” says Adam.
| A Manufacturers Network release || September 22, 2017 |||
Yesterday’s release of Treasury’s Pre-Election Economic and Fiscal Update (PREFU) provides a fairly sobering forecast of our ability to grow wealth in and for New Zealand, say the New Zealand Manufacturers and Exporters Association.
NZMEA Chief Executive, Dieter Adam says, “We have to face the reality of our lack of economic development in New Zealand. And now is the right time to challenge New Zealand’s leading parties to tell us what they are going to do to push our economy towards a more prosperous future for everyone.”
“For the next four years (2018 to 2021) Treasury forecasts a decline in the rate of absolute GDP growth in 2020 and 2021, with a similar decline in the export growth rate, down to just over 2% in 2020 and 2021. By then we’ll be four years away from the current Government’s goal of growing the share of exports to GDP to 40%, and further away from reaching that goal than ever.
“These observations sit alongside our own, and Statistics New Zealand’s data on exports of elaborately transformed goods, which have been in decline for the past 18 months or so.
“Treasury’s forecasts for the increase in GDP, as modest as they may be, are still based largely on a growth of labour inputs due to immigration for 2018. After that, miraculously, labour productivity will take over as the main driver of GDP growth. When it comes to explaining what this expectation is based on, given that for the last three years, for example, we saw virtually no productivity growth in our economy, the report remains silent, but states that “productivity growth may be slower than assumed if labour inputs grow more strongly than expected” - meaning if the forecast drop in immigration numbers doesn’t eventuate.
“So, what have we actually got here? An economy projected to grow at modest rates overall, especially in the second half of the outlook period (2020 to 2021), and growth rates for Real GDP per capita, the real measure of wealth creation, of 1.2% and 1.0% in the same period. And all of that based on a miraculous increase in labour productivity from around zero currently to between 1.5% and 1.8% from 2019 onwards.
“We suggest it is time we have a serious debate on how we can sustainably improve our ability to grow wealth in this country. Growing wealth, so we have more money to pay for a better health system, better education, and other public services. You can’t do that if most of the growth in your economy comes from immigration, or when many people’s perception of increased wealth comes from rising asset prices fuelled by ever-increasing private debt.
“Growth in wealth comes from growing the output per hour worked – and that, as the late Sir Paul Callaghan kept reminding us, will only happen if we achieve growth in those sectors of our economy that produce and export high-value products and services. Our manufacturers, together with other sectors of our productive economy, stand ready to contribute. It’s about time the major political parties did their bit by making this a key focus of their efforts” says Dieter.
| An NZMEA release || August 24, 2017 |||
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On Monday, the New Zealand Manufacturers and Exporters Association (NZMEA) hosted a forum to discuss policy issues of importance to manufacturers, featuring Hon Steven Joyce, National MP and Minister for Finance and Infrastructure, Grant Robertson, Labour's Finance Spokesperson, and James Shaw, Co-Leader of the Green Party. This was a great opportunity to hear three representatives from major parties engage with NZMEA members in a quality discussion on manufacturing, and today the NZMEA is releasing its list of policies for the 2017 election.
Mr Dieter Adam, CE, NZMEA said, “With the election only 7 weeks away, it’s important that all parties put forward their vision for creating a more prosperous and high-value economy, with manufacturing playing a key role.
"We believe the policies set out here will contribute to growing high value industries in New Zealand.
“We would like to see all parties include all or at least some of our 10 policy points in their election policies. These include working to develop a better understanding of manufacturing and its future potential through a Minister for Manufacturing, addressing skills shortages that hold back the industry from growth and changes to R&D settings to help increase business R&D spending.” Said Dieter.
The 10 NZMEA policy positions are outlined below. A full list can be found below and by clicking here.
”Our policies will help to create an environment where high value producers, particularly manufacturers, can thrive, grow exports and provide well-paid incomes so New Zealanders can have a more prosperous future. “ Said Dieter.
The NZMEA forum offered a robust conversation about the opportunities and challenges manufacturers face, focusing on the steady and growing contribution manufacturing is making to the goal of New Zealand exports reaching 40% of GDP, staying abreast of advancing technology and investing in a skilled workforce.
“Manufacturing has changed offering new opportunities for countries like New Zealand to grab and run with," says Mr Adam.
“Manufacturing is also entering a rich pipeline of innovations in materials and processes – from 3-D printing to advanced robotics, which promises to create efficiencies and speed to a global market.
“The future is more and more about innovation, increased productivity and global trade of high value components and we want to hear how our political leaders plan to support this.
“The forum was a positive step forward and we were pleased to hear politicians acknowledge the vital role both process and product innovation plays in growing our sector, " he says.
Prof Jane Goodyer, Head of School of Engineering and Technology, Massey University, moderated the event from a highly experienced perspective.
“The manufacturing sector is the backbone to NZ’s prosperity through taking our innovations to the world, " she shared.
“NZ has an opportunity to really add value to our economy. Industry, Government and education need to work closer together to make this happen,” says Prof Goodyer.
Prof Goodyer’s comments reiterate recommendations in a 2012 McKinsey report on the future of manufacturing, which concluded that two key priorities for both governments and businesses are education and the development of skills. They will need qualified, computer-savvy factory workers and agile managers for complex global supply chains. In addition to supporting ongoing efforts to improve public education—particularly the teaching of math and analytical skills—policy makers must work with industry and educational institutions to ensure that skills learned in school fit the needs of employers.
| An NZMEA release || August 9, 2017 |||
By Alex Tarrant
New Zealand’s manufacturers have issued a series of challenges to politicians on both sides of the aisle, saying leadership is needed on tertiary training to close skills shortage gaps, on research and development (R&D) incentives, and on readying the economy for the growth of automation.
In a Double Shot Interview with Interest.co.nz, New Zealand Manufacturers and Exporters Association (NZMEA) CEO Dieter Adam told Alex Tarrant that his organisation’s members were crying out to be heard on issues central to the future of the sector.
The NZMEA on Monday was set to host Finance Minister Steven Joyce, Labour’s finance spokesman Grant Robertson and Green Party co-leader James Shaw for a panel on how the various parties would help sustain and grow New Zealand’s manufacturing base.
From 26% of the country’s gross domestic product (GDP) 40 years ago, the manufacturing sector’s contribution to the overall economy has fallen to 10% of GDP today. Even over the past four years, the trend is evident, falling steadily each year from 10.5% of GDP in 2012 to 10% now despite the sector itself continuing to grow.
It may not seem much but we’re talking in the hundreds of millions of dollars as domestic consumption and the services sector, including services exports like tourism, jump up the list. While that’s all well and good for those industries, Adam argues government needs to focus on policies to allow his sector to flourish. “I’m not aware of any reasonably wealthy country that doesn’t have a strong manufacturing sector.”
Continue to read the complete article here || August 7, 2017 |||
Today’s announcement of adjustments to the proposed changes in the Essential Skills visa are welcome news to manufacturers who continue to face skill shortages that hold back their businesses from expanding, say the New Zealand Manufacturers and Exporters Association (NZMEA).
NZMEA Chief Executive, Dieter Adam said, “Despite these changes appearing to be coming from pressure largely from low-wage and primary areas of the economy, they do address some concerns manufacturers had.
“With the adjustments to the medium skilled salary threshold, the majority of skill shortages felt in the manufacturing industry will now be covered as medium skilled. This will help alleviate some of the perceived issues with the previous proposals, especially the 12 month stand down period after 3 years in the low skilled category.
“Some issues still remain, such as how setting one rate for all parts of the economy will affect the regions.
“While immigration continues to be discussed, we need to keep in mind the core need to create a system where we get the right type of skilled immigration into New Zealand. We need to address the skill shortages that hold our manufacturers and productive businesses back from expanding and contributing to higher exports and incomes.
“We recognise the growing concerns that the rapid recent increases in overall net migration have given rise to. The vast majority of those increases, however, are in migrant categories other than work visas for medium and highly-skilled workers. Any reduction in those categories would result in stifling growth in the productive high-value industries that employ such workers, including manufacturing.
“Student work visa and lower-skilled migration predominantly supplies workers to the lower-paid and low-value sectors like tourism and related hospitality industries. As Sir Paul Callaghan taught us, we need to steer our economy to where high-value and complex productive growth leads the way – increasing GDP per capita is a core path to prosperity for all in New Zealand. Part of achieving this requires ensuring we have the skills and talent such industries need to grow and innovate, through improving our education system to train New Zealanders and having effective immigration settings.
“Continually relying on growth of low-value industries for our future can actually take us backwards on this pathway to creating wealth, higher incomes and GDP per capita growth. Manufacturing and our high-value productive industries, on the other hand, have the potential to lead the way in this area. ” Said Dieter.
| An NZMEA release || July 27, 2017 |||
We are pleased to hear that the Government is planning to review incoming immigration changes with a specific focus on how they will affect the regions. Effectively addressing skills shortages in manufacturing and other sectors needs to remain a core part of our immigration system – notwithstanding changes that may be required to address other issues associated with current high levels of net migration, say the New Zealand Manufacturers and Exporters Association (NZMEA).
NZMEA Chief Executive, Dieter Adam said, “In particularly, the 12-month stand-down after three years did not make any sense to businesses – having to send quality workers back home not long after they completed the inevitable on-the-job training required to become fully productive and integral to their business operation. The skills they may take with them often simply cannot currently be filled by New Zealanders.”
“Unlike in other sectors, labour shortages in manufacturing are almost completely in the skilled workers category, especially for those with trade skills and experience.
“The Government’s approach to use pay levels as a surrogate for skill level was seen as a sensible approach by some of our members, where it was seen as potentially a smoother pathway to fill high income skill shortages, but others argued it is crude and has a number of issues. It ignores the fact, for example, of regional variation in pay for jobs at the same skill level, and it may unintentionally lead to wage inflation by artificially setting a base line across the country for what machine operators, for example, should be paid.
“The NZMEA is not simply advocating for a continuation of current immigration policies and practises, which have led to immigration outcomes that may well be unsustainable in some areas. The Government needs to go back to the drawing board and come up with changes that address these issues without cutting off the much needed supply of migrants to fill skill shortages, especially in the regions outside of Auckland.” Said Dieter.
| An NZMEA release || July 24, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242