New Zealand aerospace industry ups global ambitions

New Zealand's nearly $10 billion aviation industry has grown strongly in recent years, and is set to continue expanding.

The detail is in the New Horizons report commissioned by the New Zealand Trade and Enterprise. 

The sector, including more than 1000 aviation-related organisations, generated $9.7 billion in revenue last year, mostly from domestic activities, the report said.

However, the industry struggled to attract funding, and smaller businesses were unable to become involved in export ventures because of a lack of a united 'New Zealand Inc' approach.

Better co-ordination between national and regional government funding and developmental strategies, and better marketing would benefit the sector, the report found.

Innovation and new technology in the industry drove significant growth of 9.5 percent a year over the past five years, producing high-value products and jobs.

“We have a world-class industry,” Associate Economic Development Minister Wayne Mapp said, launching the report in Wellington. “New Zealanders are naturally air-minded. We have a higher involvement with aviation than most countries. This has translated into an impressively large range of aviation-related businesses.

"The report details how innovation and new technology in the industry have driven significant growth over the past five years. In areas as diverse as training, aircraft design, airport systems and advanced rocket technology we find New Zealand companies exporting successfully into the global market. I am confident that the industry can meet the challenge of the marketplace and build on its already impressive growth.

The aviation industry was forecast to grow by 5.3 per cent a year over the next five years, to generate $12.6 billion a year in revenue.

The Auckland region was the source of about 72 per cent of revenue for the industry, the report found.

In terms of sectors, operators generated 59 percent of total revenue, followed by 'miscellaneous', mostly fuel revenue.

The New Horizons report, which was based on interviews with 64 industry organisations and experts, identified significant export and offshore opportunities, and potential for growth.

Targets included the space industry, overseas helicopter operations, building vintage aircraft, airport design, titanium production, and design and manufacture.