Export leaders point to manufacturing's future

By Rod Oram

Business Herald Editor

Some things are working right for some of New Zealand's manufacturers, judging by the export success of NDA Engineering of Hamilton.

It recently won a contract to make stainless-steel production and storage vessels for a pharmaceutical plant in eastern Europe.

NDA is so competitive it will buy steel in Europe, ship it to Hamilton to fabricate then ship the huge steel vessels back to Europe.

Stainless steel represents about 50 per cent of NDA's manufacturing costs. Yet, despite round-tripping the steel, NDA can beat European fabricators at their own game.

This is one of the highly encouraging stories about local companies which we highlight in today's Business Herald special report.

But worryingly, companies such as NDA are exceptions, not the rule. Many manufacturers are struggling.

The sector's contribution to gross domestic product has fallen sharply over the past 15 years.

This in turn raises the danger that the manufacturing sector will be unable to support an adequate infrastructure of component and service suppliers.

Seeking a solution, the report examines how the success of the few such as NDA can be turned into the triumph of the many.

The issues will be further discussed on April 21 at a one-day Auckland conference organised by the Business Herald and the New Zealand Manufacturers' Federation.

Click here for the Special Report on Manufacturing