Manufacturing Sector Profile - Palmerston North City Council

Transcription

Manawatu Region
Sector Profiles 2010:
Manufacturing
Providing you with a better understanding of the different
components of the Manawatu Region economy and the
contribution each sector makes to the demographic and
economic growth of the region.
Images below are courtesy of Noske-Kaeser, OBO, NZ Pharmaceuticals and Pridex Kitchens
The sector profiles for the Manawatu have been developed by the Palmerston North City Council to provide a better
understanding of the different components of the Manawatu economy and the contribution each sector makes to the
demographic and economic growth of the region. Even within the broad industrial sectors of the Australian and New
Zealand Standard Industrial Classification (ANZSIC) 2006 there can be a diverse range of activities undertaken and it is
useful to understand which sectors are growing and are likely to grow in the future and their overall contribution to jobs
and incomes in the region.
This profile has been compiled by Daniel Cummins. At the time this profile was written Daniel was a student at Massey
University Palmerston North studying in his last year of a BBS(Economics)/BSc(Chemistry) working with the Palmerston
North City Council through a Massey internship to provide him with experience for his business degree.
The profiles are drawn primarily from Statistics New Zealand and Department of Labour data.
For further information please contact Peter Crawford, Economic Policy Advisor, Palmerston North City Council, Private Bag
11034, Palmerston North (email: peter.crawford@pncc.govt.nz).
Published by:
City Future Unit
Palmerston North City Council
Private Bag 11034
Palmerston North
Phone: 06 356 8199
Fax:
06 355 4115
www.pncc.govt.nz
Manawatu Region
Sector Profile:
Manufacturing
Contents
Acknowledgements inside front cover
Executive Summary 3
Introduction5
Definition6
Why is Manufacturing Vital?
7
Estimating Economic Impacts
9
Outsourcing by the Manufacturing Sector
10
National Trends and Data
11
Employment11
Productivity15
Manawatu Region Manufacturing
17
Earnings17
Gross Domestic Product
18
Employment18
Research and Development
20
Food product manufacturing
21
Manawatu Knitting Mills
24
Textile, leather, clothing and footwear manufacturing
25
Pridex Kitchen & Wardrobes
26
Wood product manufacturing
27
Printing29
New Zealand Pharmacueticals
30
Basic Chemical and Chemical Product Manufacturing
31
Iplex Pipelines (NZ) Limited
32
Polymer product and rubber manufacturing
33
Non-metallic mineral product manufacturing
34
Primary metal and metal product manufacturing
35
ETECH Industries Ltd
36
Fabricated metal product manufacturing
37
Transport equipment manufacturing
39
Noske-Kaeser
40
Machinery and equipment manufacturing
41
OBO
42
Furniture and other manufacturing
43
1
Manawatu Region Sector Profile: Manufacturing
Images courtesy of Pridex Kitchens, Noske-Kaeser & OBO
2
Palmerston North Sector Profile: Logistics and Supply Chain
Manawatu Region
Sector Profile:
Manufacturing
Executive Summary
Manufacturing has experienced significant change over the last thirty years,
beginning with rapid reform to import controls in the 1980s. Manufacturing has
shown growth in labour productivity and employee earnings but has experienced
decreasing employment and a decreasing share of GDP. Contributing factors
to the decline in GDP and employment are the outsourcing of activities from
manufacturing to the services sector, the large decline in sheep and beef
processing (both labour intensive activities compared with dairy processing)
and increased import competition.
A basic definition of manufacturing is the transformation of raw materials into a
finished or semi finished product or the assembly of semi-finished products into
a finished product other than construction.
Manufacturing is not an island. Manufacturing has ties to and from all other
sectors in the economy. If the manufacturing sector was not present in the
Manawatu region this would result in 4,300 less manufacturing jobs and $1.5
billion less of manufacturing GDP. Due to the links with other sectors, a further
8,300 jobs, $1.5 billion of household income and $1.6 billion of additional
economic activity in other sectors would be lost if the manufacturing sector did
not exist.
Manufacturing is a major contributor to research and development (R&D)
expenditure, which is positively related to economic growth. This means the
manufacturing sector is providing significant levels of resources to grow the
New Zealand economy.
In 2009, 8% of total Manawatu employment was from the manufacturing sector
creating nearly 4,300 jobs. In 2009 12% of national employment was contributed
by the manufacturing sector.
“Manufacturing has
experienced significant
change over the last
thirty years, beginning
with rapid reform to
import controls in the
1980s. Manufacturing
has shown growth in
labour productivity
and employee earnings
but has experienced
decreasing employment...”
National data from the 2006 census shows the manufacturing workforce was
predominantly middle aged, European, male workers, mostly low to medium
skilled and no qualification or a post school qualification such as a trade course.
However there were higher proportions of Maori and Pacific peoples and less
Asians in manufacturing compared to all industries. Manufacturing employees
are more likely to work full time than in other sectors and in 2007 annual
manufacturing employee earnings were $48,000, compared with $45,000 for all
industries.
3
Over the nine years from 2000 to 2009 the average annual growth in
manufacturing labour productivity has been higher than the average for the
total economy. Manufacturing has shown an average 1.0% per annum growth
compared to the all industries average of 0.9%.
Manawatu manufacturing sector earnings grew at a slower rate between 2000
and 2008 than national manufacturing, increasing by 28% in the Manawatu
compared with 40% nationally. Average earnings across all sectors in the
Manawatu region increased faster than manufacturing earnings between 2000
and 2008, increasing by 72% compared with an increase in manufacturing of
28%.
GDP for New Zealand in 2007 was $165 billion, of which an estimated $4 billion
was contributed by the Manawatu region. In 1997, manufacturing in Manawatu
contributed 15% of regional GDP, but by 2008 that figure had fallen to 12%.
The Manawatu region shows a greater proportion of employment within the
food product manufacturing sector, fabricated metal product manufacturing,
machinery and equipment manufacturing and polymer product and rubber
product manufacturing. Shift-share analysis shows the first three sectors
have significant structural strengths in the Manawatu relative to the national
manufacturing. The strength of these three sectors is clearly linked to the
importance of agriculture in the Manawatu region and the strong research and
development sector in Palmerston North.
Basic chemical and chemical product manufacturing and textile, leather, clothing
and footwear manufacturing both show weakness in the Manawatu compared
to the national structure of manufacturing.
The Palmerston North City Council has used Statistics New Zealand estimates
to estimate the level of R&D in the Manawatu region, using national data and
accounting for the significant contribution from Massey University and the
Fonterra Research Centre. For 2008 the estimates show:
•
Manawatu business R&D expenditure to be 8% of national business R&D
expenditure.
•
Total R&D expenditure in the Manawatu to be 10% of total national R&D
expenditure.
•
2,425 full time R&D employees in the region (excluding the estimated 845
unpaid post-graduate students) contributing $109 million worth of wages
and salaries.
Manawatu manufacturing employment is made up of 39% small businesses, 34%
medium businesses and 27% large businesses. Comparing this to national figures
shows national total manufacturing employment was 27% in small businesses,
33% in medium businesses and 40% in large businesses. Thus the Manawatu
region has a greater proportion of employment in small businesses than the
national average and less from large firms (small business 1-20 employees,
medium business 21-100 employees, large business over 100 employees).
4
Manawatu Region
Sector Profile:
Manufacturing
Introduction
Manufacturing in the new millennium has experienced significant restructuring,
a continuation of significant change for the sector which accelerated when
major reform to import protection began in the mid 1980s. Manufacturing
now increasingly consists of design and concept planning along with greater
automation driven by technological improvements over the last few decades
in addition to the traditional processing of primary product and assembly
of imported components. Manufacturing in New Zealand now has fewer
employees than in the 90s and early 2000s but with higher earnings. This shows
immense growth in productivity attributed to more capital investment, better
management practices, higher skilled workers and more full time employment
within the sector. Labour productivity grew on average by 1% per annum
between 2000 and 2007 in the manufacturing sector. The manufacturing sector
has however, a reduced share of GDP caused partially by increased outsourcing
to the service sector, a major decline in sheep and beef numbers and the loss of
output due to increased import competition.
Outsourcing has been an important factor in the decline in the share of GDP for
the manufacturing sector and has contributed some of the growth which has
occurred in the services sector. Before outsourcing, manufacturing firms used to
provide many of their own service activities. Examples of activities which have
been outsourced include; transport, warehousing, wholesale trade, accounting,
data processing, cleaning, maintenance and engineering design. Firms have
outsourced these due to the cost advantages provided by specialization. Due to
the change in accounting, all of these previous activities are now shown to occur
in the services sector. This has overestimated the growth taking place in services
and overestimates the decline in manufacturing. Therefore there is a significant
interdependence between the two sectors, implying one sector cannot exist
without the other.
“Manufacturing now
increasingly consists
of design and concept
planning along with
greater automation
driven by technological
improvements over
the last few decades in
addition to the traditional
processing of primary
product and assembly of
imported components.”
The decline is also in part due to the large decline in sheep and cattle numbers
between the 1980s and 2009, where farmers have transferred to the dairy
industry from the sheep and beef sector. Dairy cow numbers have increased
by 36% while sheep and beef numbers have declined by 29% and 12%
respectfully between 1999 and 2009. There has been a subsequent reduction in
manufacturing employment in sheep and beef processing, both labour intensive
activities, while dairy processing is very capital intensive.
The reduction of import tariffs by New Zealand has allowed low cost goods to
enter New Zealand, forcing many manufacturing firms in New Zealand to close.
The most obvious example is shown in the textile, leather, clothing and footwear
sub-division of manufacturing. This sub-division has experienced a decline in
employment of 37% between 2000 and 2009.
5
Manawatu Region
Sector Profile:
Manufacturing
Definition
The definition of manufacturing using the Australia New Zealand Standard
Industrial Classification is as follows:
Manufacturing mainly includes units engaged in the physical or chemical
transformation of materials, substances or components into new products (except
agriculture and construction). The materials, substances or components transformed
by units in this division are raw materials that are products of agriculture, forestry,
fishing and mining, or products of other manufacturing units.
Units in the Manufacturing division are often described as plants, factories or
mills and characteristically use power-driven machines and other materialshandling equipment.
However, units that transform materials, substances or components into new
products by hand, or in the unit’s home, are also included. Activities undertaken
by units incidental to their manufacturing industry, such as selling directly to the
consumer products manufactured on the same premises from which they are
sold, such as bakeries and custom tailors, are also included in the division. If, in
addition to self produced products, other products that are not manufactured by
the same unit are also sold, the rules for the treatment of mixed activities have to
be applied and units classified according to their predominant activity.
Assembly of the component parts of manufactured products either self produced
or purchased from other units is considered manufacturing. A simple way of
defining manufacturing is the act of making a product from raw materials.
This “easy” definition can then open our view on manufacturing to include
bakeries, printing, food processing, clothing and textiles, refining of minerals,
synthesizing chemicals and pharmaceuticals, metal products and machinery
production.
Unfortunately, determination of the effect of the manufacturing sector is not
unambiguous. There is a blurring of the boundary between other sectors of
the economy and manufacturing. An example of this is the construction of wall
frames and trusses for use in buildings. When the wall frames and trusses are
pre-assembled off the construction site they are deemed to be a manufacturing
activity, when they are built on site, they are included in the construction sector.
A further description of this blurring shows how intangible services are now
being embedded into the tangible goods produced from manufacturing. These
services are coming through in innovation processes, design and concept
planning. Thus using all of the above it is obvious there is ambiguity in a
distinction between the manufacturing sector and the services sector.
6
“Manufacturing mainly
includes units engaged in
the physical or chemical
transformation of
materials, substances or
components into new
products...The materials,
substances or components
transformed by units in this
division are raw materials
that are products of
agriculture, forestry, fishing
and mining...”
Manawatu Region
Sector Profile:
Manufacturing
Why is Manufacturing Vital?
Some commentators have suggested manufacturing is dead and is being replaced
by the services sector and may eventually become unnecessary for generating
wealth. In contrast, other commentators suggest there are four sectors that
create material wealth within an economy. They are; mining, manufacturing,
agriculture and construction. All other sectors are defined as redistributing
wealth. This view suggests that to improve the wealth of the Manawatu region
these four sectors need to grow. That is, to create wealth in an economy we must
mine raw materials, increase produce from agriculture or build new goods.
Mining and agriculture are limited by natural resources while construction has
minimal export opportunities. Hence manufacturing is such an important sector
in the economy in relation its potential to contribute to growth as it is not limited
by resources and its output can be exported outside the region and the country.
Thus the manufacturing sector is unrestrained and can prosper.
Manufacturing is vital to the economy because manufacturing is not an island.
The manufacturing sector has many flow on effects, to and from itself. Job losses
in manufacturing will be substantially felt throughout the rest of the economy
due to the economic multipliers that exist.
The effect of a decrease in manufacturing will be felt by firms that supply the
manufacturing enterprises and by firms that manufacturers sell to. If a decrease
in manufacturing occurs, manufacturing firms will buy lower levels of inputs
and produce lower levels of output. These effects then flow on to other firms in
the economy. The firms that supply inputs can no longer sell as many inputs to
the manufacturing sector and firms which purchase manufacturing output may
have a reduced choice of suppliers and potentially increased prices. These firms
may then cut costs by laying off workers. This then reduces wages and salaries,
meaning people will spend less. This decrease in spending means other firms
will have lower sales and must cut further costs.
“Manufacturing is
vital to the economy
because manufacturing
is not an island. The
manufacturing sector
has many flow on effects,
to and from itself. Job
losses in manufacturing
will be substantially felt
throughout the rest of
the economy due to the
economic multipliers
that exist.”
A change in manufacturing can have both forward (e.g.: services, transport and
wholesale sectors) and backward (e.g.: construction and mining) effects on the
economy. A forward effect is the flow-on effects from selling from one industry
to other industries. When an industry produces goods, these goods then flow on
to other industries benefitting other firms. In a similar way a backward effect is
the flow from an industry purchasing from other.
7
Such effects of the manufacturing sector can be described using dairy processing:
Dairy farmers in New Zealand rely on dairy processing plants to process their
milk before it can be sold to consumers. Since over 95% of New Zealand’s
dairy products are exported, imagine exporting unprocessed milk, with no
manufacturing involved. Exporting tanker loads of milk would need massive
refrigeration and storage facilities, resulting in significantly higher transportation
costs. The shelf life of the milk is also very short in comparison to processed
milk. The New Zealand dairy industry therefore benefits from a manufacturing
sector, resulting in a backward flow from manufacturing to agriculture. The
manufacturing process involves evaporation of water from the milk, resulting in
a dehydrated or concentrated product that bacteria cannot grow in, increasing
the shelf life and removing refrigeration dependence. Taking large quantities of
volume from milk reduces the need for vast storage facilities. The manufacturing
process adds value to dairy products due to longer life and also cuts significant
costs of storage, refrigeration and transport, so there is a backward flow between
farmers and the dairy processing firm.
A forward effect of dairy processing can be explained in the domestic market
using manufacturing and wholesale sectors:
Without a dairy processing sector, wholesalers would experience the entire
year’s milk supply during summer and autumn. With this supply there would not
be enough domestic demand for all this milk in half a year, requiring a reduction
in the dairy supply. When manufacturing occurs, the dairy processing firm can
increase the shelf life of milk, and subsequent dairy products which are produced.
Therefore, the seasonal supply of milk can be transformed into an all year round
supply. This causes wholesalers to experience significant increases in sales of
milk and dairy products. This shows then how the wholesale sector benefits from
manufacturing, showing a forward linking flow from the manufacturing sector
to the wholesale sector.
Using these two flows it is easy to see that manufacturing supplies processing
capacity to agriculture as well as supplying finished products to wholesalers. It
can also be shown that there are backward flows from manufacturing to mining,
fishing and forestry and forward flows to transport, construction, retailing and
business services.
Manufacturing is also vital through its contribution to research and development.
This is because manufacturing through R&D is a major contributor to economic
growth in New Zealand. In 2000, the manufacturing sector contributed to 13%
of total New Zealand R&D but this had increased to 21% by 2008. Manufacturing
R&D grew by 220% relative to national R&D expenditure growth of 96%. This
shows the manufacturing sector is vital to continued innovation in the economy
and thus must remain if New Zealand is to achieve sustainable economic growth.
8
Manawatu Region
Sector Profile:
Manufacturing
Estimating Economic Impacts
Measuring the economic impact of a sector is done using multipliers, the
tools economists use for measuring the downstream, or flow-on, effects of
an initial change to a particular industry. Multipliers generally estimate the
direct, indirect, and induced effects of one additional unit of final demand for
a particular industry’s output on the entire economy. The “direct” effect from
an increase in activity in the manufacturing sector occurs mostly through the
increased salaries and wages paid to the additional staff employed but there is
also an “indirect” effect as manufacturers increase their purchases of materials to
process, requiring the suppliers of those products to increase their salaries and
wages and domestic purchases. The “induced” effect occurs as a result of the
increased incomes for households, which flows through into increased spending
in the local economy. This requires more people to be employed and increases
business profits so produces a second round of increased economic activity as a
result of the original growth in activity.
In 2004 the New Zealand Institute of Economic Research (NZIER) produced
a report for the Palmerston North City Council to identify the value of the
multiplier for each sector in the Palmerston North city economy concluding the
extra income multiplier value of the manufacturing sector is 1.97.
If the manufacturing sector was not active in the Manawatu region, this would
mean that, in addition to the loss of 4,283 existing jobs in manufacturing and
the loss of $1,533m of GDP directly in manufacturing, the Manawatu economy
would also lose a further:
$1,636m of economic activity
$1,487m in household income
“The “induced” effect
occurs as a result of the
increased incomes for
households, which flows
through into increased
spending in the local
economy. This requires
more people to be
employed and increases
business profits so
produces a second
round of increased
economic activity...”
8,326 non-manufacturing jobs
In conclusion, the manufacturing sector is an integrated part of the economy
and shows interdependence with many other divisions in the whole economy.
The manufacturing sector is a vital part of Manawatu’s economy and without a
manufacturing sector, the Manawatu economy would be much less significant.
9
Manawatu Region
Sector Profile:
Manufacturing
Outsourcing by the
manufacturing sector
The argument of increased outsourcing by the manufacturing sector adds fuel
to the argument about whether the manufacturing sector is actually in decline.
Commentators argue the growth of the services sector and decline of the
manufacturing sector may be overestimated in OECD countries. A case study
in France has shown that between 1980 and 1990 that the services sector grew
while the manufacturing sector declined1. However the level of manufacturing
and industry related activities had not changed significantly. The study showed
the same activities were occurring, just more of the previously considered
manufacturing activity is now considered to be part of the services sector.
Adding to the growth of the services sector, the growth in demand for education
has lead to changes in the structure of the economy. This means there is greater
growth in the services sector as more education is needed. Thus the service
sector grows as demand for skilled labour by other industries increases (since
education is classified as a component of the services sector).
1
OECD The Service economy
10
“The argument of
increased outsourcing
by the manufacturing
sector adds fuel to the
argument about whether
the manufacturing sector
is actually in decline.
Commentators argue the
growth of the services
sector and decline of the
manufacturing sector may
be overestimated in
OECD countries.”
Manawatu Region
Sector Profile:
Manufacturing
National Trends and Data
Employment
In February 2009 the manufacturing sector contributed over 228,500 jobs in the
New Zealand economy with 4,280 being in the Manawatu region. Just over two
thirds of the manufacturing jobs in the region were in Palmerston North City and
just under one third in the Manawatu District.
The national manufacturing sector contributed 11.9% of total New Zealand
employment while 7.9% of total Manawatu employment was contributed by the
manufacturing sector.
MANAWATU Employment (2009)
Health Care and Social Assistance 14%
Other 32%
Retail Trade 11%
Public Administration and Safety 11%
Wholesale Trade 6%
Education and Training 10%
Construction 8%
Manufacturing 8%
Source: Statistics New Zealand
NATIONAL Employment (2009)
Manufacturing 12%
Retail Trade 10%
Other 39%
Construction 6%
Professional, Scientific and Technical Services 7%
Accommodation and Food Services 7%
11
The Department of Labour “Sector Tool Pilot” is an interactive labour market
analysis tool, producing key labour market indicators by industry. Data is sourced
from the 2006 census, monthly employee earnings data supplied by employers
to IRD, the Household Labour Force survey and annual employment statistics.
National employment trends for the manufacturing sector are:
The manufacturing sector was mainly dominated by workers aged between
35-54 years (50.2% of the manufacturing workforce). The manufacturing sector
had above average numbers for both the 25-34 and 35-54 age groups. There
were fewer young employees in the manufacturing sector, with 13.4% of total
employees being under 24 years of age compared with the all industries average
of 15.9%.
Age Profile
60
Percentage (%)
50
40
30
20
10
0
15-24
25-34
Manufacturing
35-54
55+
All industries
Source: Department of Labour
The manufacturing workforce was predominantly male. In 2006, 70.4% of
workers were male in comparison to the all industries average of 52.9%.
Gender
80
Percentage (%)
70
60
50
40
30
20
10
0
Male
Female
Manufacturing
12
All industries
The manufacturing workforce in 2006 was predominantly European. However,
compared to all industries workforce, there were higher percentages of Maori
and Pacific peoples and lower proportions of Europeans and Asians. In 2006 the
manufacturing workers consisted of 69% Europeans, 14.5% Maori, 8.8% Pacific
peoples and 7.7% Asian. The corresponding all industry averages were 73.9%,
12.2%, 5.2% and 8.6% respectfully.
Ethnicity
80
Percentage (%)
70
60
50
40
30
20
10
0
Asian
European
Māori
Pacific Peoples
All industries
Manufacturing
Data for the highest qualification gained by manufacturing employees shows
more workers with no qualifications and less workers with university degrees
than all industries. The manufacturing sector had 28.9% of employees with no
qualification, 30.0% with a school only qualification, 30.7% with a post school
qualification (such as a trade course) and 10.4% with degrees or higher. The
average all industries was 20.3% with no qualifications, 31.5% with a school only
qualification, 18.3% with a post school qualification and 19.9% with degrees or
higher. Manufacturing had a higher proportion of workers with a post school
qualification than the all industries average but also a higher proportion with no
qualifications.
Qualifications
35
Percentage (%)
30
25
20
15
10
5
0
No Quals
School only
Manufacturing
Post school
Degree+
All industries
13
Manufacturing had a greater proportion of long term employment than other
industries. In 2006, 39.8% of manufacturing employees had a job tenure duration
of greater than 3 years compared with the all industries average of 30.6%.
Duration of Employment
40
35
Percentage (%)
30
25
20
15
10
5
0
<1 yr
1-2 yrs
2-3 yrs
Manufacturing
>3 yrs
All industries
Department of Labour statistics show that for 2006, the proportion of high
skilled staff was far lower than all industries, 19.2% compared to 30.6%. At the
other end of the spectrum, the proportion of low skilled workers was higher than
that of all industries, 50.3% in comparison to 46.9%.
High skilled workers are deemed to be managers or science or engineering
professionals, medium skilled are trade workers or science or engineering
associate professionals, while low skilled workers are determined to be plant and
machine operators and assemblers or labourers.
Skills
60
Percentage (%)
50
40
30
20
10
0
Highly skilled
Medium skilled
Manufacturing
14
Low skilled
All Industries
Manufacturing employees are more likely to be in full time employment and
average earnings are higher for manufacturing employees compared to the
average from all industries. In 2007 annual earnings for a manufacturing
employee were $48,000, compared with $45,000 for all industries.
Average ANNUAL Earnings
40,000
Amount ($)
32,000
24,000
16,000
8,000
0
2000
2001
2002
2003
2004
2005
All Industries
2006
2007
2008
Manufacturing
In summary, the manufacturing workforce was made up of mainly of male
workers aged between 35 and 54, predominantly European but with higher
proportions of Maori and Pacific peoples, lower proportions of Europeans and
Asians and mostly low to medium skilled, with no qualification or a post school
qualification such as a trade course. Manufacturing employees are more likely to
be full-time and hence their average annual earnings are above the all industries
average.
Productivity
Labour productivity has increased by an average of 1.0% per year between the
time of 2000 and 2007 for the NZ manufacturing sector. This compares with
large productivity gains in the communications sector and negative labour
productivity growth of the construction sector. This can be compared with the
average national labour productivity growth of 0.9% per annum (2000-2007).
LABOUR PRODUCTIVITY (OUTPUT PER JOB) 2000-2007
Personal & Other
Culture & recreation
Business services
Finance & insurance
Communications
Transport & storage
Hospitality
Retail trade
Wholesale trade
Construction
Electricity, gas & water
Manufacturing
Primary
Total measured sector
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
Annual average growth (%)
Source: The Treasury
15
16
Manawatu Region
Sector Profile:
Manufacturing
Manawatu Region Manufacturing
Employee Earnings
The manufacturing sector contributed to 13.9% of total employee earnings
nationally in the year ended June 2008 and 9.0% of Manawatu region employee
earnings. The manufacturing sector has grown between 2000 and 2008 both
regionally and nationally with respect to the sectors earnings. The national
increase was 40% while the regional growth was 28%.
Although the manufacturing sector has grown in the past eight years, the sector
has not grown as fast as the all industries average. National growth in earnings,
for the all industries average, increased by 72% while the Manawatu all industries
average has grown by 68%. This shows that earnings in the manufacturing sector
were growing at a much slower rate than all industries. The Manawatu region
manufacturing sector accounted for 1.84% of national manufacturing employee
earnings in 2000 and 1.68% in 2008.
MANAWATU EARNINGS (2008)
Other 33%
Construction 9%
Wholesale Trade 7%
Manufacturing 9%
Professional, Scientific
and Technical Services 7%
Retail Trade 8%
17
National EARNINGS (2008)
Manufacturing 14%
Other 36%
Professional, Scientific
and Technical Services 11%
Wholesale Trade 7%
Retail Trade 7%
Construction 7%
Gross Domestic Product (GDP)
GDP in 2007 for New Zealand was $165 billion. In the Manawatu region the
estimated GDP (Berl estimates) was $4 billion. Manufacturing in the Manawatu
region contributed 11.8% of the region’s GDP in 2007 compared to 14.7% in
1997. The manufacturing sector in Manawatu in 1997 was the largest contributor
to Manawatu’s GDP. By 2007 the sector had dropped to the second largest
contributor behind the business services sector.
MANAWATU SHARE OF GDP (2007)
Other 16%
Education 6%
Property Services 12%
Manufacturing 12%
Primary 6%
Construction 6%
Business Services 7%
Retail Trade 8%
Government Administration
and Defence 10%
Wholesale Trade 7%
Employment
Employment in the Manawatu is reasonably similar to the national manufacturing
structure. However, the Manawatu region shows a greater proportion of
employment within the food product manufacturing sector, fabricated metal
product manufacturing, machinery and equipment manufacturing, and polymer
product and rubber product manufacturing. Shift-share analysis shows the first
three sectors have significant structural strengths in the Manawatu relative to
the nation. Shift-share analysis has been used to elaborate on how well each
individual sub sector has competed relative to national levels. This analysis shows
where regional strengths and weaknesses lie and does this by systematically
comparing industries employment at the national and regional level.
18
Source: BERL ECONOMICS
The strength of these three sectors is clearly linked to the importance of
agriculture in the Manawatu region. There are clear concentrations of
employment in sectors which process agricultural products (food product
manufacturing) or supply the agricultural sector and food product sector with
manufactured products (e.g. plastic pipes, agricultural machinery, stainless steel
tanks and agricultural machinery).
SHAre of employment within MANAWATU manufacturing (2009)
Other 12%
Textile, Leather,
Clothing and Footwear 5.6%
Food Product Manufacturing 34%
Wood Product
Manufacturing 6.7%
Polymer Product and
Rubber Product 7%
Transport Equipment 7.9%
Fabricated Metal Product 13.8%
Machinery and Equipment
Manufacturing 13%
Employee numbers(between 2000 and 2009)
Food Product Manufacturing
Textile, Leather, Clothing and Footwear
Wood Product Manufacturing
Printing
Basic Chemical and Chemical Product
Polymer Product and Rubber Product
Non-Metallic Mineral
Primary Metal and Metal product
Fabricated Metal Product
Transport Equipment
Machinery and Equipment Manufacturing
Other Manufacturing
Total Manufacturing
2000
2009
Change Between
2000-2009
(number of workers)
1392
565
189
137
262
371
96
20
387
293
840
201
4753
1458
238
285
118
131
301
95
18
590
338
556
155
4283
66
-327
96
-19
-131
-70
-1
-2
203
45
-284
-46
-470
Percentage change
4.7%
-57.9%
50.8%
-13.9%
-50.0%
-18.9%
-1.0%
-10.0%
52.5%
15.4%
-33.8%
-22.9%
-9.9%
19
SHAre of total employment within national manufacturing (2009)
Other 22.4%
Food Product Manufacturing 31.1%
Polymer Product
and Rubber Product
Manufacturing 5.2%
Transport Equipment
Manufacturing 5.7%
Textile, Leather,
Clothing and Footwear 5.9%
Wood Product Manufacturing 7.4%
Machinery and Equipment
Manufacturing 12%
Fabricated Metal Product Manufacturing 10.3%
Research and Development
The Palmerston North City Council has used Statistics New Zealand estimates to
approximate the level of R&D in the Manawatu region, using national data and
accounting for the significant contribution from Massey University, the Fonterra
Research Centre and the Crown Research Institutes based in Palmerston North.
The estimates show Manawatu business R&D expenditure was 8% of national
business R&D expenditure, while total R&D expenditure in the Manawatu is
estimated was 10% of total national R&D expenditure. This shows a significant
contribution of the Manawatu region to national research and development.
The Palmerston North City Council has also estimated there were 2425 full time
R&D employees in the region (excluding the predicted 845 unpaid post-graduate
students) contributing $109 million in wages and salaries to the Manawatu
economy.
Business Size
All figures stated for the remainder of this document are for 2009 unless stated
otherwise.
In the Manawatu District, total manufacturing employment was 30% in small
businesses, 20% in medium businesses and 50% in large businesses (small
business 1-20 employees, medium business 21-100 employees, large business
over 100 employees).
In Palmerston North, total manufacturing employment was 43% in small
businesses, 41% in medium businesses and 17% in large businesses.
In comparison national data shows total manufacturing employment was 27% in
small businesses, 33% in medium businesses and 40% in large businesses.
Note: the examples given of businesses in this sector of the profile have been
included to illustrate the range of manufacturing businesses operating in the
region, however, this is not a comprehensive database of key businesses in the
region.
20
Manawatu Region
Sector Profile:
Manufacturing
Food Product Manufacturing
Key categories which are important to food product manufacturing in the
Manawatu Region (with examples of some of the businesses in the sector)
include:
Meat Processing
An example of a meat processing plant in the Manawatu region is Venison
Packers in Feilding, which provide services such as slaughter, boning and
packaging and chilling/freezing of venison, beef and lamb.
Affco Manawatu is based in Feilding and processes a range of livestock into
meat products.
Milk and Cream Processing
Fonterra is a New Zealand owned international dairy processing cooperative
with a factory based at Longburn. Fonterra Brands Ltd is a subsidiary of
Fonterra, which produces ice cream in Palmerston North.
Cheese and Other Dairy Product Manufacturing
Meadow Fresh produces milk, yogurt and custard and has a factory based
in the Manawatu.
Yoplait yogurt. Yoplait is manufactured in Palmerston North under marketed
license by National Foods NZ Ltd.
Cake and Pastry Manufacturing
Ernest Adams is a manufacturer producing ready made cakes, desserts and
Christmas baking. Their products include slices, loaves, cookies, éclairs,
brandy snaps, meringues, sponges, puddings and tarts. Ernest Adams is
located in Palmerston North.
“Key categories which
are important to food
product manufacturing
in the Manawatu
Region include: Meat
Processing, Milk and
Cream Processing, Cheese
and Other Dairy Product
Manufacturing, Cake and
Pastry Manufacturing,
Other Food Product
Manufacturing”
Other Food Product Manufacturing
Prepared Foods Processing Ltd is a highly focused export licensed food
processor, specialising in shelf stable meals in pouches and cans for military
organisations. Prepared Foods Processing Ltd is based in Palmerston North.
21
Employment in this sub-division has increased between 2000 and 2009. The
2009 employment figures show that this sector has grown by 4.7% since 2000.
National growth was 7.5%. The food product manufacturing sub-division is the
largest manufacturing employment sector within the Manawatu, with the 64
businesses employing 1,460 workers in 2009. This is equivalent to 34% of total
manufacturing employment in the Manawatu 2009.
Nationally, 68% of employees in food product manufacturing worked in large
businesses (greater than 100 employees) compared to the Manawatu district of
50%, Palmerston North city had a composition with only 17% of employees in
large firms and 41% in medium sized firms (20-100 employees).
Food product manufacturing has a large structural strength in the Manawatu,
showing just under 150 jobs wouldn’t exist if this sector was identical to national
levels.
“The food product
manufacturing
sub-division is the
largest manufacturing
employment sector within
the Manawatu, with the
64 businesses employing
1,460 workers in 2009.
This is equivalent to 34%
of total manufacturing
employment in the
Manawatu 2009.”
22
Manawatu Region
Sector Profile:
Manufacturing
23
Manawatu Knitting Mills was established in 1884, and is the oldest knitting mills
in Australasia. We are also New Zealand’s leading knitwear manufacturer. Our
products are original, and are created based on years of dedication, experience
and innovation within the textile industry.
Manawatu Knitting Mills specialise in the design of knitwear using natural fibres,
including cashmere, alpaca, angora, possum and merino, as well as superfine
merino.
Today Manawatu Knitting Mills uses leading edge technology to create the
most versatile and outstanding products within the knitwear industry. This
technology includes whole garment Machinery, CAD CAM design systems and
3D shaping capability to develop and design unique knitwear products, which
are sold worldwide
These products are produced in New Zealand, marketed and distributed through
out the world. Our technicians and designers travel overseas regularly in order to
embrace the world’s best technology and design.
Currently we employ 43 staff throughout the company.
Knitting Machines we operate are 2 Italian Scarf machines, 22 Shima knitting
machines from Japan which include 7 whole garment and 4 glove machines.
Preservation
As a company we are very aware of our responsibilities to protect the unique
ecology of New Zealand. Part of our contribution to this preservation,
we are involved with the programme ‘operation nest egg’ run in
conjunction with the Department of Conservation. This programme
hatches kiwi chicks and then releases them back into the wild when
they are old enough to protect themselves against predators.
Manawatu Knitting Mills is committed to New Zealand and its unique
and diverse wildlife. Because of this dedication, we are proud to
have sponsored two precious kiwi chicks called ‘Mana’, a Maori word
meaning ‘Prestige’ and ‘Arohanui’ meaning ‘Great Love’.
38 Bennett Street
PO Box 309
Palmerston North
Phone: +64 6 357 7029
Fax: +64 6 353 3044
email: sales@mkm.co.nz
www.mkm.co.nz
24
“Manawatu Knitting
Mills specialise in the
design of knitwear using
natural fibres, including
cashmere, alpaca, angora,
possum and merino, as
well as superfine merino.
Today Manawatu Knitting
Mills uses leading edge
technology to create
the most versatile and
outstanding products
within the
knitwear industry”
Manawatu Region
Sector Profile:
Manufacturing
Textile, Leather, Clothing and
Footwear Manufacturing
Key categories in the textile, leather, clothing and footwear sector in the
Manawatu Region (with examples of some of the businesses in the sector)
include:
Clothing Manufacturing
Academy Apparel is a company based in Palmerston North producing a
range of clothing including wet weather gear, corporate wardrobes and
sports and casualwear.
Knitted Product Manufacturing
Manawatu Knitting Mills is a leading knitwear manufacturer based in the
Palmerston North.
Employment in this sub-division has significantly decreased by 58% between
2000 and 2009 due to the loss of 330 jobs. Nationally the same trend, but less
substantial, is observed with a decrease of 36.6% in this sub-division. In 2009
235 staff were employed in 34 businesses in the sector
All Manawatu district employment is from small businesses. Palmerston North
has 45% of employment from small businesses with 55% from medium firms.
National employment was 33%, 39% and 28% for small, medium and large
businesses respectfully.
A major reason for the national and regional decline of this sector is the reduction
of tariffs and other import protection, resulting in increased competition from
imports.
“Key categories in the
textile, leather, clothing
and footwear sector in
the Manawatu Region
(with examples of some
of the businesses in the
sector) include: Clothing
Manufacturing, Knitted
Product Manufacturing”
Shift-share analysis shows that the Manawatu textile, leather, clothing and
footwear manufacturing has a large structural weakness. If the Manawatu
region’s structure was identical to the national structure we would see 190
more jobs in this sector. Textile, leather, clothing and footwear manufacturing
however, makes up a significant proportion of Manawatu manufacturing and
thus is important for Manawatu manufacturing.
25
Pridex Kitchens and Wardrobes
After a massive growth period over the past two years, Pridex Kitchens and
Wardrobes is fast becoming the kitchen and wardrobe company to visit in any
New Zealand location.
The 28-year old company, started and is still head quartered in Palmerston North.
Pridex Kitchens and Wardrobes will be opening up another three franchises this
year in Albany, West Auckland and Hamilton, taking the company from one
franchise in 2008 to 16 franchises spread from Auckland to Dunedin. Franchises
are still being snapped up, with store openings planned in Gisborne, Taupo,
Whangarei, Invercargill, and Nelson during 2011.
With $2 million worth of manufacturing plant operating in Auckland, Palmerston
North and Christchurch, Pridex Kitchens has New Zealand covered for quality,
locally made kiwi products designed to exact customer requirements. Using
advanced technology, coupled with improved manufacturing processes, means
that Pridex Kitchens is able to make a custom designed kitchen for about the
same price as a modular kitchen bought from a “big box retailer” or hardware
store.
Pridex Kitchens has been instrumental in forming partnership deals with a
number of New Zealand group home builders and currently supplies more group
home builders than any other kitchen company in New Zealand. The company
understands builders and the deadlines they require and this is one reason why
Pridex has been so successful in this market sector.
In the retail kitchen market customers choose the Pridex brand for a number of
reasons:
• Pridex is represented in all major towns and cities in New Zealand
• The Pridex commitment to service, quality and excellent value is
unbeatable.
• Each kitchen and wardrobe is individually designed and
manufactured to exact customer specification.
• Access to superior products such as Kymira solid surface
benchtops which are exclusive to Pridex
(Amongst the very wide choice of benchtops available to the customer
today Pridex Kitchens has an exclusive supply deal with Christchurch
company Wright Marble for the supply of Kymira “solid surface” bench
tops availabler in 750 colours.
K I T C H E N S &
W A R D R O B E S
Pridex Kitchens and Wardrobes
47 Railway Road
Palmerston North
Phone: +64 6 356 9397
Fax: + 64 6 356 9397
email: info@pridex.co.nz
www.pridex.co.nz
26
“With $2 million worth
of manufacturing plant
operating in Auckland,
Palmerston North and
Christchurch, Pridex
Kitchens has New Zealand
covered for quality, locally
made kiwi products
designed to exact
customer requirements.
Using advanced
technology, coupled with
improved manufacturing
processes...”
Manawatu Region
Sector Profile:
Manufacturing
Wood Product Manufacturing
Key categories in the wood product manufacturing sector in the Manawatu
Region (with examples of some of the businesses in the sector) include:
Log sawmilling
NZ Sawn Products is a business located outside Feilding. NZ Sawn Products
purchases timber from all over the North Island, transforming logs into
processed wood of certain dimensions and dried to specific moisture
content.
Wooden Structural Fitting and Component Manufacturing
(e.g. wood door manufacturing, wooden kitchen cabinet making and roof
trusses manufacturing.
Pridex Kitchens has a factory in Palmerston North and specialise in designing
and assembling kitchens. Most technology is computerised, delivering high
quality products. Pridex is a national franchise operation managed from its
base in Palmerston North.
Hansens has a factory based in Palmerston North. Hansens specialises in
commercial furniture such as reception counters and also caters for kitchen
and bathroom joinery.
Growth in this sub-division shows promise with a rise in employment from 2000
to 2009 of over 95 workers, a 50.8% increase. Wood product manufacturing now
employs 285 workers in the Manawatu in 51 businesses, a 6.7% share of total
Manawatu manufacturing employment. National figures show this sub-division
had contracted by 12.2%.
Wood product manufacturing employment in Palmerston North was spread
between small and medium sized firms with 68% of employment in small firms.
Half of the Manawatu district’s employment was in medium businesses and the
other half in small firms. National employment was 37%, 38% and 25% for small,
medium and large businesses respectfully.
“Key categories in
the wood product
manufacturing sector in
the Manawatu Region
(with examples of some
of the businesses in
the sector) include:
Log sawmilling,
Wooden Structural
Fitting and Component
Manufacturing”
27
28
Manawatu Region
Sector Profile:
Manufacturing
Printing (including the Reproduction
of Recorded Media)
The printing sector in the Manawatu Region (with examples of some of the
businesses in the sector) includes printing and Printing Support Services such as
digital printing and screen printing, book binding and book repair.
Screen Print Services is a Palmerston North business specialising in
commercial and textile screen printing.
K&M Print is a company in Palmerston North specialising in printing services
such as graphic design, laminating, bindery, photocopying, brochures and
flyers.
The number of workers in this sub-division have halved in the Manawatu between
2000 and 2009, with 130 job losses. In the national data, this sub-division has
decreased by 15.5%. In 2009 125 staff were employed in 21 businesses in the
region
Manawatu district’s employment in printing was solely from medium sized
firms, while the majority of employment in Palmerston North was split between
medium and small firms totalling with small firms employing 66% of workers.
National employment was 42%, 43% and 15% for small, medium and large
businesses respectfully.
“Manawatu district’s
employment in printing
was solely from medium
sized firms, while the
majority of employment
in Palmerston North
was split between
medium and small firms
totalling with small
firms employing 66% of
workers.”
29
New Zealand Pharmaceuticals Ltd
New Zealand Pharmaceuticals Ltd is a specialist manufacturer of biochemicals
supplied to the pharmaceutical and biotechnology industries around the world.
The company has established an international reputation for producing high
quality products made to exacting specifications compliant with internationally
recognised good manufacturing practices.
Founded on technology developed in conjunction with Massey University,
NZP is now one of the world’s leading processor of animal bile into a range of
bile acid products. Research and innovation is a driving force at NZP with a
significant proportion of revenues invested in that commitment. This led to the
development of other biochemicals extracted from meat industry by-products,
plant extracts and more recently, synthetic biochemicals. Production volumes
range from kilos to tonnes and a great part of NZP’s recent successes have come
about due to its flexibility and market focus during the product development
phase of new opportunities.
Quality management is integral to NZP’s philosophy and ensures that all products
conform to stringent customer specifications and comply with international
regulatory requirements.
NZP hold several licences including a medicines licence for the manufacture of
specific medicines, a biological processing licence for the manufacture of animalderived products and is GMP certified to manufacture active pharmaceutical
ingredients (API’s).
NZP has also invested in a majority shareholding in Just the Berries Ltd who are
a dietary supplements company focused on supplying blackcurrant
extracts to markets in Japan, Europe and the USA.
In 2009 NZP acquired Dextra Laboratories Ltd who are a provider of
synthetic specialty carbohydrates and complex chemistry services.
Situated in state of the art laboratories in Reading (near London),
Dextra offers world leading innovative solutions to the synthesis
of challenging complex compounds in support of glycotherapeutic
drug development. From a few milligrams to the multi-kilogram
scale, Dextra supports programmes to phase II clinical trials.
The Company’s global staff is now over 140 trained personnel, and
NZP is ranked in New Zealand’s Top 500 companies and exports over
99% of its products.
New Zealand Pharmaceuticals Ltd
68 Weld Street
PO Box 1869
Palmerston North 4440
Phone: +64 6 952 3800
Fax: +64 6 952 3801
email: market@nzp.co.nz
www.nzp.co.nz
30
“NZP is now one of
the world’s leading
processor of animal bile
into a range of bile acid
products. Research and
innovation is a driving
force at NZP with a
significant proportion of
revenues invested in that
commitment. This led to
the development of other
biochemicals extracted
from meat industry
by-products...”
Manawatu Region
Sector Profile:
Manufacturing
Basic Chemical and Chemical Product
Manufacturing
Employment in this sector in the Manawatu region is concentrated in basic
organic chemical manufacturing
New Zealand Pharmaceuticals Ltd is located just outside of Palmerston North
near Linton. NZP manufactures a range of biochemicals and natural extracts
for international health food, cosmetic, biotechnology and aquaculture
industries.
There has been a halving of workers in this part of manufacturing in the
Manawatu from 2000-09. This part of manufacturing now employs 131 workers,
making up 3.1% of Manawatu manufacturing employment. Nationally there has
been a decrease in employment of 25%.
Palmerston North was the only source of employment in this sector for the
Manawatu with one large firm employing 85% of all workers with the residual
in small businesses. National employment was 25%, 42% and 33% for small,
Basic chemical and chemical product manufacturing has a significant structural
weakness in the Manawatu, showing if our region’s structure was identical to the
national structure we would see over 50 more jobs in this sector.
“Palmerston North
was the only source of
employment in this sector
for the Manawatu with
one large firm employing
85% of all workers with
the residual in small
businesses. National
employment was 25%,
42% and 33% for small,
medium and large
businesses respectfully.”
31
Iplex Pipelines (NZ) Limited Growth through Innovation
A company with a 40 year old tradition of getting the recipe right, Iplex Pipelines
(NZ) Limited ensures its future by looking past a sales budget. Providing pipeline
solutions to their clients as well as embracing cutting edge technology sees Iplex
setting the standards in the pipe manufacturing industry.
Iplex has been manufacturing PVC and Polyethylene (PE) pipe and fittings in
New Zealand since the early 1960’s, achieving many firsts in the plastic industry,
including the general acceptance of plastic pipelines as an affordable and
durable choice. The Iplex business moved from Porirua to Palmerston North in
1975 as Winstone Plastics, when the factory was built on the current Malden
Street site.
Iplex is now a subsidiary of prominent Australian company, Crane Group Limited.
Iplex employs in excess of 150 full time staff. The current site has grown over the
years to its current size of 6.2 hectares, with the plant capable of producing up
to 1,000,000 metres of pipe per month, operating 24-hour a day, 7-days a week.
Additional to this facility Iplex has a manufacturing plant and distribution centre
in Christchurch and regional sales office in Auckland.
Iplex personnel are rightly proud of their company, with average tenure of
employment in excess of 10-years. Iplex New Zealand has a strong health and
safety culture, with group and industry leading safety figures.
Iplex has Bronze level Environmental
accreditation and is committed to
low
environmental
impact,
with
manufacturing sites running on clean
energy, recycling cooling water and using
rework within the production chain. Post
production, Iplex also operates recycling
protocols with merchants and end users.
In New Zealand, Iplex participates in
four major market sectors; Building,
Civil Infrastructure, Rural and Energy &
Telecommunication.
Iplex Pipelines NZ Limited
67 Malden Street
Private Bag 11 019
Palmerston North
Phone: +64 350 0629 (DDI)
Fax: +64 356 2906
email: r.learmonth@
iplexpipelines.co.nz
www.iplex.co.nz
32
“Iplex is now a subsidiary
of prominent Australian
company, Crane Group
Limited. Iplex employs
in excess of 150 full time
staff. The current site
has grown over the years
to its current size of 6.2
hectares, with the plant
capable of producing
up to 1,000,000 metres
of pipe per month,
operating 24-hour a day,
7-days a week. ”
Manawatu Region
Sector Profile:
Manufacturing
Polymer Product and Rubber Product
Manufacturing
Key categories in the polymer product and rubber product manufacturing sector
in the Manawatu Region (with examples of some of the businesses in the sector)
include:
Iplex Pipelines NZ Ltd is a company based in Palmerston North producing
agricultural systems, drain waste, vent and sewer systems, rainwater systems
and electrical, telecommunications duct and gas pipes.
Precision Irrigation is a company in the Manawatu district manufacturing
remote programming and monitoring systems for irrigation systems
pioneering efficient water usage.
Stallion Plastics manufacturers rotational moulds, calf care equipment and
plastic mouldings. Stallion Plastics is based in Palmerston North.
Mouldings Unlimited are based in Ashhurst providing custom moulds to
suit orders from any client. Mouldings Unlimited predominantly deals with
contract moulding, troughs, consultancy and tanks.
McKee Plastics is a firm based in Feilding manufacturing plastic goods,
kayaks and calf care equipment.
This sub-division since 2000 has declined from 370 workers to 300 in 2009, an
18.9% decrease. The national contraction in employment over the nine year
period was 2.2%. There were 28 businesses in the sector in 2009
Palmerston North has one large firm employing half of all workers while 40%
of employment was from small firms. The Manawatu district has one medium
firm employing 73% of the districts total employment in this sector with the rest
coming from small firms. Nationally large firms comprise 30% of employment in
this sector, while medium firms employ 48% of workers from this sector.
“Palmerston North has
one large firm employing
half of all workers while
40% of employment was
from small firms. The
Manawatu district has one
medium firm employing
73% of the districts total
employment in this sector
with the rest coming from
small firms.”
33
Manawatu Region
Sector Profile:
Manufacturing
Non-Metallic
Mineral Product Manufacturing
Concrete product manufacturing (such as the production of ready mixed
concrete and concrete products) is the key activity in the non-metallic mineral
product manufacturing sector in the Manawatu Region.
Hynds Pipe Systems have a factory in Palmerston North specialising in
precast concrete for civil and rural applications.
National data shows that this is another one of the few two-digit sectors of
manufacturing that experienced positive growth over the 2000-09 period,
recording a promising 10.6% increase in employment. The Manawatu region
however, did not follow the national growth recording a 1% decrease in
employment. Non-metallic mineral product manufacturing now employs 95
workers in the region in 20 businesses.
All of the Manawatu district’s employment came from small businesses.
Palmerston North had 71% of employment from small businesses. No large firms
for this sector were in Palmerston North. National employment was 41%, 36%
and 23% for small, medium and large businesses respectfully.
34
“All of the Manawatu
district’s employment
came from small
businesses. Palmerston
North had 71% of
employment from small
businesses. No large
firms for this sector were
in Palmerston North.
National employment was
41%, 36% and 23% for
small, medium and large
Manawatu Region
Sector Profile:
Manufacturing
Primary Metal
and Metal Product Manufacturing
Basis ferrous metal manufacturing (such as iron smelting and steel manufacturing)
is the key activity in the non-metallic mineral product manufacturing sector in
the Manawatu Region.
Milson Foundry Ltd is based in Palmerston North providing industrial metal
services
Primary metal and metal product manufacturing has the smallest share of
Manawatu manufacturing employment contributing just 0.4% or 18 workers
employed in 8 businesses.
All employment for this sector for the Manawatu was small Palmerston North
based firms. Nationally this sector is predominantly large businesses with 65%
of employment from large firms, 25% from medium firms and 10% from small
firms.
“All employment for this
sector for the Manawatu
was small Palmerston
North based firms.
Nationally this sector
is predominantly large
businesses with 65% of
employment from large
firms, 25% from medium
firms and 10% from
small firms.”
35
Etech Industries Ltd
Originally launched in 1979 under the name of Stainless & Engineering Services,
ETECH announced itself to the Palmerston North region as a stainless steel
fabrication and on-site pipefitting business. By 1990 a range of workshop
services were on offer. As the growth and reputation of the company expanded,
so too did its desire to enter new realms of engineering.
This reached a high-point in 1999 when, after a significant period of re-branding,
the company diversified its operations to include laser cutting and, on a separate
level, to continue providing fabrication services for the dairy industry. By the close
of 2004, with expectations running high for even greater levels of production,
the business was relocated into new, strikingly designed premises in Kaimanawa
Street, the new industrial heart of the city.
Today, ETECH is established as part of the vanguard of steel engineering
companies in New Zealand and, to maximize efficiency, has split itself into two
core business units. The first of these units, Fabrication, denotes the manufacture
of customised aluminium, mild steel and stainless steel products, marine
sector railings, specialised metal sculptures and architectural handrails. A large
part of the fabrication division involves work for the dairy, food and chemical
industry. This includes ice cream and milk storage tanks, different-sized barrels
for road tankers, in addition to other speciality items like cottage cheese vats,
fermentation vessels, plus whey decanter and conveying systems.
The other core unit within ETECH is technology-based. Specifically, this entails the
company’s 1999 entrance into the laser cutting and sheet metal manufacturing
market with the acquisition of a Trumpf 3 kilowatt flatbed laser cutter.
Another 5 kilowatt version of the same machine was added in 2004.
This newer version cuts thicker material at a faster rate—processing
3mm stainless steel at five metres per minute. Typical examples of
laser output would be custom signage, electronic housings, stainless
steel agricultural components, lifting lugs for the transport industry,
aviation parts and speciality artistic pieces.
By furthering its manufacturing ideals of quality and service, while
maintaining a cutting-edge presence in the industry, the company is
assured of bright days ahead. For ETECH, the future is steel.
Etech Industries Ltd
130 Kaimanawa Street
PO Box 831
Palmerston North
Phone: +64 6 355 4550
Fax: +64 6 353 0351
email: sales@etech.net.nz
www.etech.net.nz
36
“Today, ETECH is
established as part of
the vanguard of steel
engineering companies
in New Zealand and...
The first of these units,
Fabrication, denotes
the manufacture of
customised aluminium,
mild steel and stainless
steel products, marine
sector railings, specialised
metal sculptures and
architectural handrails.”
Manawatu Region
Sector Profile:
Manufacturing
Fabricated Metal Product
Manufacturing
The fabricated metal product manufacturing sector in the Manawatu Region
(with examples of some of the businesses in the sector) includes pipe fittings
and valves, prefabricated steel parts, scaffolding, kit set buildings, aluminium
framing, guttering, farm tanks and silos food and drink cans and gates and wire
production.
ETECH is a business based in Palmerston North providing fabrication of ice
cream and milk storage tanks barrels for road tankers and fermentation
vessels. Laser cutting of sheet metal is the second part of ETECH using high
tech Trumpf flatbed laser cutters.
Mike Christie Sheetmetals is based in Palmerston North. Mike Christie
Sheetmetals works with stainless steel, aluminium, brass and copper
producing products for a range of industries.
Total Sheetmetals is based in Palmerston North specialising in high definition
CNC plasma profiling, stainless steel, aluminum and mild steel fabrication
heating, ventilation and extract ducting systems architectural fabrication
requirements.
Brunton Engineering are Palmerston North engineering specialists in
welding, machining, steel fabrication, profile cutting and repairs.
Manawatu Security Fencing is based in Palmerston North providing specialist
design, manufacture, installation and servicing of a broad range of fencing
solutions.
Ashhurst Engineering and Construction is located in Ashhurst and specialises
in steel fabrication for substations, hydro dams and wind farms
“This subdivision has
had a major increase
in employment in
the past nine years
since 2000, reporting
a 52.5% increase in
employee numbers, the
largest increase of all
sub-divisions, resulting in
over 200 new jobs.”
This subdivision has had a major increase in employment in the past nine
years since 2000, reporting a 52.5% increase in employee numbers, the largest
increase of all sub-divisions, resulting in over 200 new jobs. This is in contrast to
the national trend, with national figures showing a decrease of 16.9% of jobs in
the 2000-09 period. In 2009 615 people were employed in the 84 businesses in
the region.
All of the Manawatu district employment in this sector was from small firms,
while Palmerston North was half and half between small and medium firms.
Nationally, 45% of employment in this sector is small businesses, 43% from
medium businesses and 12% from large firms.
37
Fabricated metal product manufacturing has a significant structural strength in
the Manawatu, showing if our region’s structure was identical to the national
structure we would see over 60 less jobs in this sector. Hence in the Manawatu,
shift-share analysis shows fabricated metal product manufacturing is a strength
of the Manawatu and is important for the future of Manawatu manufacturing.
Servicing the agricultural and food processing sectors is a key activity for this
sector in the Manawatu
38
Manawatu Region
Sector Profile:
Manufacturing
Transport Equipment Manufacturing
The transport equipment manufacturing sector in the Manawatu Region (with
examples of some of the businesses in the sector) includes boat building and
repair, railway rolling stock repair services, aircraft repair services, motor vehicle
body and trailer manufacturing.
Profab Central Engineering Ltd is a company in Palmerston North specialising
in the production of aluminium boats and stainless steel fabrication.
Quality Kayaks Ltd is based in Ashhurst manufacturing kayaks.
Transport equipment manufacturing comprises 7.9% of the region’s
manufacturing worker base. This sub-division has experienced a significant rise
in employment of 33.8% now employing 590 workers in 2009 in 36 businesses
compared to 387 employees in 2000. This compares favourably against national
data showing only 13% growth in the nine year timeframe.
40% of Palmerston North employment was in small businesses and 60% in medium
businesses. This is similar to the Manawatu district with 53% of employment in
small businesses and 47% in medium businesses. National employment was
28%, 31% and 40% for small, medium and large businesses respectfully.
“40% of Palmerston North
employment was in small
businesses and 60% in
medium businesses.
This is similar to the
Manawatu district with
53% of employment in
small businesses and 47%
in medium businesses.
National employment was
28%, 31% and 40% for
small, medium and large
39
Noske-Kaeser
Noske-Kaeser is a specialist designer and manufacturer of HVAC systems for
navy ships (surface and submarine) commercial vessels, passenger trains and
locomotive driver’s cabs. We utilise components and construction techniques
developed specifically for long-term reliability within the specific requirements
for vibration, corrosion resistance and wildly varying ambient temperatures.
Current Products include:• Design and build of navy ship air-conditioning systems
• Commercial ship and boat air-conditioning systems
• Navy and commercial ship machinery space ventilation systems
• Navy and commercial ship cool room and cold room refrigeration systems
• Rail Passenger Car Rooftop HVAC units (Electrical Railcar + Diesel Railcar)
• Rail Passenger Car Rooftop, under car and split system HVAC,
Loco hauled carriages
• Rail Locomotive Driver’s Cab HVAC units with and without integral inverter
• Fans and spares
Conveniently situated in the provincial city of Palmerston North our facility
employs a wide range of staff including, designers, production engineers,
procurement, quality control, and manufacturing staff covering the wide range
of disciplines required for specialist equipment manufacturing.
Specific manufacturing capabilities include sheetmetal fabrication, CNC cutting,
welding, refrigeration assembly, electric assembly, PLC programming, painting,
wet spray and powder coating.
A comprehensive in-house test facility enables environmental,
electrical, full performance testing of manufactured equipment,
both during prototyping and as part of the production process.
In addition for passenger trains we have a mock-up facility which
features a whole car mock-up, which can be re-configured to specific
project requirements, enabling the development and testing of
passenger car air distribution systems.
Noske-Kaeser is able to undertake the full process from design
through manufacture to testing all under one roof, offering total
in-house management of quality and delivery schedules.
Noske-Kaeser
481 Tremaine Avenue
Palmerston North
Phone: +64 6 353 0350
Fax: +64 6 353 0355
email:
newzealand@noske-kaeser.co.nz
www.noske-kaeser.com
40
“A comprehensive
in-house test facility
enables environmental,
electrical, full
performance testing of
manufactured equipment,
both during prototyping
and as part of the
production process. In
addition for passenger
trains we have a mock-up
facility which features a
whole car mock-up...”
Images courtesy of: Downer Rail - passenger
rail car & NZDF- navy inshore patrol vessel
Manawatu Region
Sector Profile:
Manufacturing
Machinery and Equipment Manufacturing
The machinery and equipment manufacturing sector in the Manawatu Region
(with examples of some of the businesses in the sector) includes agricultural
machinery and equipment manufacturing and other specialised equipment
manufacturing.
C-Dax is focused mainly with the primary sector specializing in ATV
accessories. C-Dax’s primary focus lies in agri-chemical sprayers and
broadcast fertilizer spreaders. The head office of C-Dax is located just
outside Palmerston North.
Noske-Kaeser produces air conditioning, ventilation and refrigeration for
ships, yachts, rail and vehicles, with a factory in Palmerston North.
In the Manawatu for 2000-2009 the machinery and equipment manufacturing
has been in decline with respect to employee numbers, recording a 33.8%
decrease. The closure of the Sunbeam electric blanket factory in Palmerston
North was a major contributor to the decline in employment. Comparing this
data to the national growth shows that the nation’s growth of machinery and
equipment was 7% increase in employee numbers. Machinery and equipment
manufacturing is the third largest manufacturing sub-division in the Manawatu
in 2009, making up 13% of Manawatu’s manufacturing employment. In 2009 550
people were employed in 116 businesses in the sector.
Machinery and equipment manufacturing has a large structural strength
in the Manawatu, showing that if our region’s structure was identical to the
national structure we would see over 80 less jobs in this sector. Hence in the
Manawatu, shift-share analysis shows machinery and equipment manufacturing
has a strength in the Manawatu and is important for the future of Manawatu
manufacturing.
“Machinery
and equipment
manufacturing has a large
structural strength in
the Manawatu, showing
that if our region’s
structure was identical
to the national structure
we would see over 80
less jobs in this sector...
and is important for
the future of Manawatu
manufacturing.”
Machinery and equipment manufacturing had no large businesses in the
Manawatu. 57% of Palmerston North employment and 35% of the Manawatu
district employment was from medium sized firms. National employment in
machinery and equipment manufacturing was 33%, 38% and 29% for small,
41
OBO
Tomorrow Today NZ Ltd designs, manufactures and markets hockey protective
equipment for field hockey goalkeepers.
We sell under our own brand (OBO) and hold a global market share in excess
of 60%. We sell our products in 61 countries worldwide. We export 95% of our
turnover. (Please refer to obo.co.nz for more details). Most of our products are
made in Palmy using specialist production equipment that was also designed
and manufactured in this city. Our factory usually operates 24 hours per day
and is staffed by a small group of highly experienced and skilled people. Special
people.
We are currently embarking on a transforming business expansion into Sports
Face Protection under the faceOff brand name. Exports of these products, mainly
targeted at softball players in the United States Of America have begun. ( Please
see faceofftruestory.com for more details) Our operating model is based on being a big player in a small but global market.
We will only operate in markets that we consider we can achieve clear world
leadership, a minimum of 35% market share within 5 years of launch, and in which
we hold substantial competitive advantage and where once established there
are considerable barriers to entry for competitors. We are a design led company
and were the 2005 national winners of the Lexus Design in Business Award. We
are winners of numerous other regional and national business awards.
OBO
21 Mihaere Drive
PO Box 1782
Palmerston North
Phone: +64 6 356 6060
Fax: +64 6 356 3939
email: info@obo.co.nz
www.obo.co.nz
42
“We sell under our own
brand (OBO) and hold a
global market share in
excess of 60%. We sell our
products in 61 countries
worldwide. We export
95% of our turnover...
Most of our products
are made in Palmy using
specialist production
equipment that was
also designed and
manufactured in this city.”
Manawatu Region
Sector Profile:
Manufacturing
Furniture and Other Manufacturing
Key categories in the furniture and other manufacturing sector in the Manawatu
Region (with examples of some of the businesses in the sector) include:
Furniture Manufacturing
Toy Sport Product Manufacturing
OBO is a company specialising in hockey equipment. OBO designs and
manufactures hockey gear and hockey training equipment in Palmerston
North.
This sub-division has experienced a sharp decrease in furniture employment
both nationally and regionally in the Manawatu. The national decline is 19.1%
while the Manawatu region had a larger 22.9% decrease between 2000 and
2009. In 2009 152 people were employed in 56 businesses in the sector.
All employment in the Manawatu district is from small firms. 83% of Palmerston
North employment was from small firms while 17% was from medium firms.
Nationally, 55% of employment was from small firms, 35% from medium sized
businesses and 10% from large firms.
“All employment in the
Manawatu district is
from small firms. 83%
of Palmerston North
employment was from
small firms while 17%
was from medium
firms. Nationally, 55% of
employment was from
small firms, 35% from
medium sized businesses
and 10% from large firms.”
43
44
PETER CRAWFORD,
Economic Policy Advisor, Palmerston North City Council, Private Bag 11034, Palmerston North
Email: peter.crawford@pncc.govt.nz
Published by:
City Future Unit, Palmerston North City Council, Private Bag 11034, Palmerston North
Phone: 06 356 8199, Fax: 06 655 4115
www.pncc.govt.nz

Manufacturing Sector Profile - Palmerston North City Council

Transcription

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