Recent job losses in the food processing sector are being cited as further evidence of pressure on New Zealand manufacturing, with closures and workforce reductions highlighting wider challenges across the industry.
Buy NZ Made executive director Dane Ambler says the closure of the McCain processing plant and the announcement of 300 job losses at Wattie’s reflect broader structural issues facing local producers.
“These are not isolated events, they reflect broader structural challenges facing New Zealand manufacturing.”
Ambler says rising costs and softer demand are placing sustained pressure on businesses.
“Almost half of respondents (46%) report rising operational costs, while more than a third (39%) say slow demand is impacting their performance. Together, these pressures are creating a perfect storm for local manufacturers, many of whom are already operating on tight margins.”
He says the impact extends beyond individual businesses.
“Behind every announcement like this are hundreds of families and communities impacted.”
Ambler says the current environment is affecting both producers and consumers, with cost-of-living pressures influencing purchasing behaviour.
“We know Kiwis want to buy local, but the reality is that times are still tough. Cost of living pressures mean many households are pulling back on spending, which is flowing directly through to reduced demand for locally made goods.”
Buy NZ Made is calling for increased support for domestic manufacturing, including government procurement and measures to reduce cost pressures.
“We need stronger, more deliberate backing of New Zealand made goods and services.”
Ambler says manufacturing remains a key part of the economy, particularly in regional areas and across supply chains.
“New Zealand manufacturing plays a vital role in our economy, from regional employment to supply chain resilience.”