forest talk
NZ manufacturers left behind “WHILE NEW ZEALAND HAS REBOUNDED well from the recession, GDP and production have not yet returned to pre-COVID levels. At a time when COVID support is being wound back here, our trading partners are upping the ante to kick-start and support recovery efforts and, in some cases drive forward substantial industrial innovation strategies,” says New Zealand Wood Processors and Manufacturers Association (WPMA) Chair Brian Stanley. As a result, New Zealand manufacturers are being left behind as other countries build up support for their manufacturing industries, he says, citing a new report by the WPMA titled International Manufacturing Policy and Programme Responses to COVID-19. The report, by MartinJenkins consultancy, documents major interventions by New Zealand’s main trading partners. In 2020, around 200 countries introduced COVIDrelated economic support measures worth an estimated US$12-17 trillion, representing 13-19% of global GDP. Countries like Australia, Singapore and South Korea have introduced major manufacturing strategies to grow the value of their manufacturing sectors and build resilient supply chains. Many other countries have used the COVID crisis to accelerate investment in digital and low-emission technologies to support productivity growth and the transition to a low carbon future. “The immediate challenge is that COVID continues to change everything and we can’t sit back and rely on NZ’s traditional processes to respond to those challenges,” says Mr Stanley. “Our wood manufacturers are now up against international competitors receiving substantial and ongoing additional assistance. Furthermore, this is all happening within a trade environment where barriers remain high. We need to see urgent government efforts with the private sector to support the competitiveness of our manufacturers in global markets where
4 NZ LOGGER | April 2021
there is now scant regard for World Trade Organization (WTO) rules,” he explains. Another factor is that the completion of New Zealand’s Industry Transformation Plans will be around mid-2021 meaning any initiatives are not likely to be in place before the end of 2021 at the earliest. “We can’t wait till the end of the year while other countries are already implementing policy and programme support. Other countries are moving fast to bolster their value-adding industries and our manufacturers are seriously getting left behind.” WPMA Vice-Chair, John Eastwood, also senior executive for the trans-Tasman engineered wood manufacturer XLAM, says WPMA Chair, Brian Stanley. the closure of the Whakatane mill highlights the need for government adopting content requirements for projects to prevent further decline. “It’s yet another casualty in a long such as local capability development or line of closures in our domestic wood carbon neutrality. • A step change in R&D support: processing industry due to the failure of successive governments to address unfair Significantly increasing the level and trade environments and support the accessibility of R&D funding available to enable New Zealand manufacturing to competitiveness of our manufacturers. “There are some key levers government transition to a low carbon future. This can and must pull immediately to assist would be consistent with recommendations in the Climate Change Commission’s recent manufacturers.” The WPMA proposes the following report. Mr Stanley says New Zealand is missing immediate interventions in line with other an opportunity now and in the medium term countries: • Accelerated depreciation: Enabling to set policies that encourage higher levels capital investment in digital, Industry 4.0 of investment in our wood manufacturing and greenhouse gas emission reduction sector. “New Zealand’s post-COVID economic technologies to be fully depreciated in the recovery, particularly the infrastructure/ first year. • Government procurement: Embedding construction pipelines and shovel ready domestic manufacturing in the pipeline of projects are under threat because of major infrastructure and housing projects shipping delays. Given the $129 billion being delivered over the next decade through infrastructure pipeline over the next improved pre-commercial procurement decade, and the significant housing deficit, processes with industry, requiring government needs to think differently and partnerships with local businesses and to act quickly,” he says. NZL
