New Zealand’s $10Bn aviation industry

“We always knew aviation’s contribution to the New Zealand economy was significant, but now we have it substantiated by sound underlying economic research and the figure of $10bn has been arrived at conservatively,” said Irene King, CEO of the Aviation Industry, speaking about the recently tabled New Horizons work into the economic and value add of the industry.

Commissioned by NZTE the report shows:
• This industry has grown about 9% per annum over the last five years, despite economic uncertainty
• The industry directly employs 23,500
• the industry makes up 6.9% of GDP
• Growth prospects are projected between 5-9% per annum in the year’s to come
• Exporting is a growing and dynamic sector, but having a sound domestic base has been the powerhouse of the industry over the past few years.

There are some startling findings; most notably that productivity has grown by an average of 7% over the last three years. This is against a backdrop where most sectors of the New Zealand economy have been in negative territory. Explaining the productivity growth is not difficult – it’s driven by a highly competitive local and international market in most sectors of the industry; technology uptake and innovation and a real hunger to get out there and just “do it”.

While past growth rates over the last five years have powered the way, the industry now needs to look to the future and be clear about what will drive its advantage in the future. The report recommends a whole of government, whole of industry, alignment of vision, strategy and goals. Ms. King said “this is an exciting development and precisely where industry sees change, propelling growth to achieve our aspiration goal of double digit growth year on year.

We are already one of the power house industries of the new economy, but we can do better, recognizing our future lies with:
• Leveraging brand New Zealand
• Building a training brand around “Academy New Zealand”
• Encouragement for high performing businesses to stay in New Zealand
• Increased use of public - private partnerships
• “using our brains not our bodies “ by developing the “weightless export”

For more detail on the report go to view here.

Contact Irene King Wellington 04 4722707 or 021 936838 for more detail.