Growth in plastics industry

The plastics industry has been growing for some time, and exports have been increasing over recent years. The number of employees in the industry is expected to grow from 8,000 to approximately 12,000 by 2015.

Most plastics manufacturing jobs are in Auckland, Hamilton, Palmerston North, Wellington, Christchurch or Dunedin.

Exchange rate affects plastics industry

The exchange rate affects plastics manufacturing businesses in varied ways. For businesses that are producing relatively low value, price-sensitive products, a high dollar can reduce competitiveness, as it makes their products more costly for overseas markets.

At the same time, however, a high dollar provides some cost savings because plastics manufacturers import raw materials from overseas.

The exchange rate has less of an impact on plastics manufacturing businesses competing in niche markets. This is because customers are buying products based on quality and innovative features that meet their demands, rather than just price.

Not all goods produced by plastics manufacturers are for export. Some businesses produce goods for domestic industries, such as the dairy industry, where demand is strong for plastic products.

Niche markets the key for growth

More businesses in the plastics industry are making niche products so they can remain competitive in a global market, and this trend is expected to continue. As a result, employers will be looking to attract, retain and develop more highly skilled workers to improve efficiency and produce high quality products.

Changes in machinery increasing demand for engineers

As plastics machinery is becoming more automated and complex, there is growing demand for plastics engineers, who are needed to keep the machines working. There are constant technical advances in this area, and the equipment plastics engineers use has also become highly computerised.

As a result, training is becoming more important for plastics engineers. Over recent years there has been a significant increase in opportunities for workers to gain national certificates through on-the-job training.

(Written 23/04/2007)