NZ Manufacturer July 2020

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July 2020

BUY NZ MADE

www.nzmanufacturer.co.nz

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COVID-19 BUSINESS Rushing shovelready projects comes with real risk.

PROFILE Tendai Masamba, Fonterra.

VIEW 27 REAR The market is not our master.

Can We be More Productive? By Ian Walsh, Managing Director, Intent Group Over the past 50 years, New Zealand has been on a negative GDP trajectory versus the OECD, sliding from 5th place to 22nd! The top 10 countries average 60% more productivity per person per capita in US$ than we do, and this gap has been widening since the mid 1980’s.* The general consensus is that we work hard, and the statistics say we work more hours than most. Clearly this is the harder not smarter argument. Perhaps Sir Paul Callaghan captured it best when he said, “In New Zealand we sense, somehow we are not as prosperous as we would like.” Without highly productive businesses we will not be able to generate the income to invest in human and physical capital, to create the society and country we aspire to.

So why are we less productive? There has been a lot of research over the years, with the traditional arguments being that our costs are

higher as we are further away from market.

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The research, however, shows that we should be 20% above the average** and playing in the top 10, but we are not. This is due to:

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Weak international connections. New Zealand firms face reduced access to large markets and limited participation in global value chains, where the transfer of advanced technologies now often occurs. Underinvestment in “knowledge-based capital”. In particular, R&D undertaken by the business sector is among the lowest in the OECD, reducing the capacity for “frontier innovation” and the ability of firms to absorb new ideas developed elsewhere (“technological

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NZ Set for Rapid Increase in Large Scale Manufacturing Post-Covid 19 New Zealand is set to see a rapid increase in large scale manufacturing in the coming months according to new figures from the country’s largest industrial and residential development. More than a fifth of the 170 hectares of commercial land available at Drury South Crossing in South Auckland has been sold to a wide range of manufacturing, logistics, fabrication, construction and industrial businesses. The development is expected to contribute $2.3bn to the economy, employ 6,000 in the manufacturing, distribution, food processing, tech and logistics sectors and provide affordable housing for 2,000 Kiwis when it is completed in 2027.

According to developers, Drury South Crossing will be one of the first large scale manufacturing hubs to be designed and completed in a post-COVID-19 environment.

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30 day free trial download today hps://www.alibre.com/get-a-trial/ Stephen Hughes, CEO, Drury South Crossing

Design and planning for a number of the new plants are already well underway with construction on the first of the new facilities expected to come on stream

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Don’t delay, contact us now.

Sales and training—Aust/NZ Region enquiries@baycad.biz - www.baycad.biz 0274847464


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