The EMA stated that the latest industry plan to help manufacturers develop advanced capability addressed falling GDP in the sector. Specifically, more investment in software, hardware and the requisite skills, stimulated through an accelerated depreciation scheme, would generate low-carbon, sustainable economic growth.
The Advanced Manufacturing Industry Transformation Plan released last week was a blueprint for future growth for New Zealand's higher-paid skilled jobs in companies typically export-focused.
EMA Chief Executive Brett O’Riley said the industry represented 10 percent of the economy and was the second largest employer of Maori and Pasifika workers.
Investing in new and enhanced capabilities was challenging for many manufacturing businesses. Many manufacturers indicated they intend to refrain from investing in new technology this quarter.
The percentage of the sector that contributed to GDP dropped in the last quarter. With the drop in general confidence, manufacturers need more immediate and tangible help.
"The drive towards accelerated depreciation on investments in software, hardware and the upskilling of workers is essential to turn this tide," revealed Mr O’Riley.
"It would enable more of our businesses, large and small, to confidently invest in advancing their manufacturing processes, leading to better productivity and higher wages."
O’Riley explained that the initiative should receive bi-partisan support as advanced manufacturing aligned with many policy aspirations. This included a sustainability focus following growing sentiment for environmentally friendly practises and its enablement of supporting New Zealand to remain globally competitive.
"There’s a clear case for accelerated depreciation for investment in manufacturing. We saw it work in other sectors during the COVID recovery. It should be part of the Government’s upcoming budget to stimulate economic growth that benefits communities nationwide.”
