Light alloys are in increasing global demand, especially aluminium because of its unique properties of light weight, corrosion resistance, thermal and electrical conductivity, its relative abundance and environmental sustainability.
The NZ Light Alloy Industry however faces unprecedented challenges and opportunities.
The sector is a good example of the hit NZ manufacturers are taking from lower wage economies, dumping of imports below world market prices, and a lack of quality/safety standards applied to imports at our borders. In recent years we have seen other countries pirating and counterfeiting NZ made product and avoiding compliance costs in areas of health and safety and environment, (so much for a “level playing field”). All of the above issues have contributed to NZ metals manufacturers down-sizing, closing or relocating off-shore.
NZ manufacturers of light alloys are mainly small businesses working in isolation with low overheads. Many are innovative, relatively low-cost producers but with limited market knowledge and very low access to capital, modern equipment and manufacturing technology. Those who have grown to medium sized businesses also face the same barriers with heightened risk of failure as they bid for competitive international orders.
The threats are common and the majority of companies recognise that the only viable strategy is to collaborate and concentrate resources in order to firstly survive and then have a chance of expanding globally.
Despite the competitive pressure New Zealand has found niche markets at the high value end of the product range in each sub-sector – usually innovative products with high individualisation for customers and closely targeted to their needs. Excellent communication with customers and rapid response to their requirements has enabled a number of NZ manufacturers to succeed, where slower, volume orientated approaches have failed and are continuing to do so.
Brief overview of New Zealand Light Alloy Manufacturing Industry
New Zealand Light Alloy Manufacturing flowchart - download pdf
Estimated percentage of NZ light alloy manufacturing production - download pdf
NZ light alloy manufacturing sectors surveyed in 2005 - download pdf
For detailed information about New Zealand Light Alloy Manufacturing Industry, please review LAM-NZ Roadmap Report completed in 2005, available for members only.
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