31 May 2024

Budget 2024 for Manufacturing

It is clear that the allocation for manufacturing is significantly less than what the manufacturing sector needs, though this is not surprising for the immediate 12-month horizon. The key factor will be the Minister's decisions regarding the long-term strategy, and we are confident that through AMA’s established connections with MPAG (Manufacturing Productivity Advisory Group), we will continue to play a vital role in this process.


At a high-level we can expect the manufacturing focus for FY25 to be:

  1. Workforce development - starting at the school level
  2. Showcasing success stories
  3. How we get capital into NZ businesses e.g:  KiwiSaver Providers, Export Credit Office
  4. Industry4.0: 100 x SIRI Assessments
  5. Access to information through a new portal manufacturing.nz


Importantly, with the new appropriation for manufacturing, we expect this to provide an opportunity to significantly grow over the coming years, enhancing productivity through capital intensification initiatives such as accelerated depreciation.


We also recognize that the Government's focus on efficiency and productivity aligns directly with the advancement of manufacturing. We anticipate more manufacturing industry-led projects in the Science, Research, and Innovation portfolios, particularly in Industry 4.0 and AI projects.


Additionally, we aim to drive greater engagement in the manufacturing industry with NZTE's excellent export support and the Regional Business Partner programme, which aids many SME’s within the manufacturing sector.


Finally, it is encouraging to see the continuation of the Apprenticeship Boost Scheme. It will be interesting to see how this, combined with the removal of first-year free fees and the outstanding workforce planning efforts by Hanga Aro Rau (which has secured at least another 12 months of funding), will unfold.


For more detail on the Budget 2024 'Business, Science, Innovation' appropriation estimates, click here 

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