New Zealand's dynamic manufacturing sector, the very engine room of our economy, stands at a pivotal juncture. Facing skills shortages and the imperative to innovate, the industry is poised for transformation. SouthMACH, Sales & Event Manager, Jack Heslin spoke with Catherine Lye, CEO of Advancing Manufacturing Aotearoa (AMA), ahead of SouthMACH Exhibition , to delve into the challenges and opportunities shaping this vital sector.
Lye's concerns centre on critical skills gaps, particularly in CNC machining, engineering (especially AI, robotics and design) and fabrication. "It's more pronounced in the regions," she notes, highlighting the urgent need for a review of immigration settings to attract essential talent. Equally crucial is investing in local talent. "Apprenticeships and trades pathways via polytechnics are still not as valued as university," Lye observes, underscoring the necessity to reframe educational success and remove disincentives for vocational pathways.
To support the sector's growth, Lye calls for strategic government partnerships. "The Government's Going for Growth agenda should consider key areas," she states, advocating for an Invest NZ Programme that aligns investor market fit, government procurement policies that prioritise social return on investment and tax settings that include accelerated depreciation. "One of the most consistent requests from manufacturers is for accelerated depreciation," she explains, enabling faster reinvestment in technology.
Furthermore, Lye proposes allocating a portion of the RDTI scheme to manufacturing process innovation projects, complementing accelerated depreciation and encouraging the rapid adoption of AI and robotic automation.
Looking ahead, Lye envisions a sector reshaped by AI, automation and sustainable practices. "AI will be pivotal," she asserts, with advanced machine learning and data analytics driving efficiency. Sustainability will also take centre stage, with manufacturers embracing green technologies and circular economy principles.
SouthMACH will showcase these innovations, with the AMA's "The Future Makers" activation highlighting forward-thinking manufacturers and inspiring the next generation. The inaugural Minister for Manufacturing Awards, officiated by the Honourable @Chris Penk, will further celebrate excellence. "As New Zealanders and as people in manufacturing, we don’t always tell our story well," Lye admits. "We don’t showcase our successes enough or highlight that modern manufacturing is high-tech, innovative and highly valued."
"New Zealand’s manufacturing sector is the engine room of the economy, fostering innovation, creating high-value jobs and contributing to both local and global markets."
These awards aim to inspire talent and boost global competitiveness by encouraging investment in advanced technologies.
Lye's call to action is clear: enter the Inaugural Minister for Manufacturing Awards and visit the AMA activation at SouthMACH. "These awards are a way to inspire the next generation of talent and help boost the sector’s global competitiveness by encouraging investment into advanced technologies."
The biennial SouthMACH trade event is held at Christchurch's Wolfbrook Arena on May 28-29, 2025, offering industry professionals a glimpse into the future of manufacturing. For more information and to register to attend for free visit: southmach.co.nz