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.

Employers will also require workers to use technology more. For example, plastics machine operators are increasingly likely to operate computer controlled machinery. In addition, machine operator and die setter roles are increasingly being combined.

As a result of these changes, which aim to save costs and boost competitiveness, training is becoming more important for plastics machine operators. Over recent years there has been a significant increase in opportunities for workers to gain national certificates through on-the-job training.

A starting point to progress from

The role of plastics machine operator is a useful starting point. A number of employees develop experience and training then move into more technical careers in the plastics industry.

(Written 23/04/2007)