Client: Industry Capability Network

Authors: Fiona Stokes and Dr Ganesh Nana

Date: February 2009

This report describes a selection of multipliers related to the New Zealand domestic manufacturing industry. These multipliers are calculated from data for the 2007/08 year. It asks: What is the impact of this sector’s annual production (gross output) rising by another $1m?
A $1m increase in gross output in the New Zealand domestic manufacturing industry yields a further $0.90m in upstream expansion in industry gross output, and another $0.38m of induced activity. The initial and indirect effects of this industry are another $0.75m in value added across this and all upstream industries, as well as a further $0.19m in induced activity.

In terms of employment, the initial, direct and indirect effects of this industry translate to another 7.06 full-time equivalents (FTEs) in this and all upstream industries, as well as a further 1.81 induced FTEs. In total, an average $1m increase in the gross output of the domestic manufacturing industry results in an additional $0.93m in value added and 8.87 FTEs.

Alternatively, explicitly utilising the multiplier values $1m of additional value added in the New Zealand domestic manufacturing industry results in $2.05m of initial and downstream value added. Including induced elements, this rises to $2.56m of value added.

For each additional FTE employed in the New Zealand domestic manufacturing industry, an additional 1.90 FTEs are employed in initial and downstream industries. Including induced elements, this figure rises to 2.27 FTEs.

Job# 4717