When manufacturing does well, our economy does well.
Unfortunately, the Performance of Manufacturing Index (PMI) released mid-July, shows New Zealand's manufacturing sector continues to be hit hard by the economic slowdown. June's PMI fell to just 41.1. A reading below 50 indicates the sector is contracting. Worse, this is the 16th straight month that the manufacturing sector has contracted, and the PMI is now sitting at its lowest level for a non-COVID month since the Global Financial Crisis.
This is concerning because manufacturing remains a critical part of our economy. It contributes more than $23 billion to our GDP, accounts for 60% of our exports and employs 12% of our workforce. That is why it is important that we get the policy settings right to support our manufacturing sector to thrive.
New Zealand is full of innovative and dynamic manufacturers producing high-quality goods that are being exported around the world.
If we want manufacturing to continue to be a cornerstone of our economy and drive our future economic growth then the following worrying workforce trends, threats & weaknesses must be addressed:
- Understanding talent dynamics in this sector is crucial as we face rapid technological advancements and global competition. This survey aims to provide insights into the current state of talent in one of New Zealand's key industries.
The survey examines skill levels, recruitment challenges in New Zealand, and the impact of technological innovation. By gathering data from various manufacturing businesses, it seeks to identify trends, challenges, and growth opportunities.
Insights from this survey will help leaders, policymakers, and educators make informed decisions to strengthen the sector’s talent pipeline and ensure its long-term sustainability.
We invite you to complete this 5-minute survey by 31st July. Your responses will be confidential and anonymised. Thank you for your contribution.
Click here to access the survey.
Questions 12-14 of the survey focus on the impact of Changes to the Accredited Employer Work Visa (AEWV) – 7th April 2024. Thank you to our members for bringing to our attention potential issues around the new changes to the settings.
On top of the recent changes there is a much wider and more consultative review of all immigration settings planned for the next few months. We will have a good opportunity to influence the settings before any further changes are made.
The immigration minister has made it very clear that there will be tighter settings for “lower skilled” workers, and that there is not a lot of room for movement there. Obviously, we will endeavour to ensure trades and such like are not categorised as “lower skilled” but rather that their value to New Zealand is recognised.
In the interim, we are surveying the manufacturing sector to collect and present comprehensive evidential data to support our advocacy for solutions to the challenges arising from the recent changes in immigration settings. Our goal is to provide the Minister with detailed, data-driven real-time insights that highlight the critical areas affected and propose actionable solutions.
To achieve this, we aim to focus on the following key areas:
Your support in this data collection effort is crucial. By working together, we can ensure that our submission to the Minister is robust, comprehensive and reflective of the true impact on the manufacturing sector.
We invite you to complete this 5-minute survey by 31st July
Click here to access the survey.
Thank you in advance for taking the time to complete this survey.
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