An election-year discussion on how to make the most of New Zealand's manufacturing base to grow exports and jobs is being called for by the New Zealand Manufacturers and Exporters Association.
The chief executive of the Christchurch organisation, Deiter Adam, said it was vital to keep building the country's manufacturing base and capability to produce more high-value products.
That was especially so when the manufacturing eco-system relied on a network of capable manufacturers making up each other's supply chains and building the industry's general ability to produce complex goods and skills.
''Our focus needs to be on building an environment where manufacturing can grow and prosper. The availability of suitable skilled staff, keeping up with changes in manufacturing and a less punishing exchange rate, especially with Australia, our main trading partner, will be critical to that.''
Mr Adam was reacting to news this week of the sale of Sistema Plastics to United States multinational company Newell Brands, in addition to the recent sale of Compac Sorting Equipment, to Norwegian company Tomra in October.
Those sales, alongside the recent announcement of the closure of the General Cable plant, in Christchurch, might leave some wondering what was happening to manufacturing in New Zealand.
The situation was ''steady as she goes'', with manufacturing continuing to be the second-largest contributor to GDP and showing moderate long-term growth rates with less of the huge swings in export revenue that characterised the commodities part of the economy, he said.
Within the manufacturing sector, there was constant change as companies closed down and new ones arose. Others were growing their business.
Most manufacturers were fully exposed to the ''rough winds'' of global competition, whether that was in exporting or competing with importers in the domestic market. They also faced the effect of an overvalued currency hitting margins and competitiveness, Mr Adam said.
''Our manufacturers have made big changes, especially post-GFC, to get shape and stay fighting fit in tough markets. Sometimes conditions change to an extent it is unsustainable to continue.''
While each story needed to be examined on its own merits, there were common elements between Compac and Sistema.
Both had been built into large successful New Zealand manufacturing companies over the past three decades by owners who had put in a lot of hard work and money. The owners now wanted to exit their company while ensuring the new owners kept it on a steep growth path and preserved jobs in New Zealand.
Although it might have been preferable for the business to stay in New Zealand hands, the country's capital markets were thin as Kiwis collectively preferred to invest in real estate rather than the productive parts of the economy, Mr Adam said.
''The deals also make a lot of commercial sense as the new owners in both cases provide access to their resources, including vast marketing, sales and distribution networks.''
