Scion welcomes the establishment of the Advanced Technology Institute (ATI) and is pleased that ‘wood and fibre products’ have been identified as one of the group’s focus areas. Source: Scion
The Government’s aim with the ATI is to increase export earnings from 30% (low by OECD standards) to 40% by 2025.
Increased onshore manufacturing is critical to achieving this. It aligns directly with the forest industry’s aspiration to grow export earnings from the current NZ$4.8billion to NZ$12 billion by 2022.
A vibrant manufacturing sector generates higher paying jobs and local economy multiplier effects. These benefits can be very significant when firms, like many in the forest industry, are located in regional cities and towns.
Increasing onshore manufacturing of logs and other forest materials such as post-harvest residues and stumps is going to be a tough, but ‘doable’ challenge. It will require gains across the value chain from design to the application of lean principles, logistics and critically new science discoveries according to Scion.
Scion, through its ‘Biomaterial Futures’ strategy, is well placed to contribute strongly to this initiative.
The macroeconomic settings for New Zealand exporters, as in most countries at present, are difficult. A high and volatile exchange rate, relatively high cost of capital, low direct foreign investment; diminution of the Emission Trading Scheme for forest owners and difficulties in attracting and keeping top talent are some of the factors to be overcome in building a stronger manufacturing base.
