Rapid Industrial Expansion

Press, Volume CVI, Issue 31088, 17 June 1966, Page 26 (Supplement)

Rapid Industrial Expansion

With nearly 38 per cent of the working population of the Christchurch urban area employed in manufacturing industries, manufacturing has become a major factor in the area’s prosperity and economic growth.

Out of the Christchurch’s urban area work force of 80,000, 30,000 are employed in manufacturing industries.

Last year, using raw materials worth £6om, they produced goods worth more than £loom. With added value in excess of £4om, these goods were sold throughout New Zealand and, in an increasing number of cases, found their way on to export markets.

The Christchurch urban area has 1100 factories, and produces just over 12 per cent of the nation’s manufactured goods.

Capital investment in industry in the Christchurch

urban area is estimated to ( be in the vicinity of £4lm — £26m in land and buildings and £lsm in plant and machinery. Last year, industry in the area paid wages and salaries amounting to £2sm, a vital factor in the £Bom turnover of the area’s 2700 retail stores. Today, many consider the development of industry has only occurred during the last 25 years, mainly because of import controls and the Second World War. Nothing could be more erroneous. Although import controls have given industry an additional impetus, there have been many widely varied industries making all types of goods, since the early days of the province. First Forge Shortly after the formation of the Canterbury settlement, Mr John Anderson erected his first forge on a site in Oxford terrace near Barbadoes street From this beginning, Christchurch’s manufacturing industry has developed, and today the engineering firm founded by Mr Anderson is a vital unit in the city. The engineering industry as a whole has shown remarkable growth. Even within the four main belts, engineering industry is prominent and produces beating equipment, electric ranges, washing machines, agricultural equipment, many other products, and components for other industries. Besides this, it provides excellent servicing for many other Christchurch industries and, in the manufacturing of dies, a number of overseas-owned Christchurch factories find that dies can be made much more cheaply by local diemakers than in their own overseas factories. With what is considered to be the best servicing engineering industry in New Zealand, Christchurch has a solid base for further industrial expansion. Many Facilities The area has many facilities which encourage industrialists to establish here. These include an abundance of power, ready access to transport routes, especially with the new railway, airport and harbour facilities built during the last few years.

The ready availability of fully-serviced industrial land, with a lower construction cost then all other centres, has resulted in some modern factories being constructed at a cost less than £1 10s a sq ft. Recognised for its stable labour force, Christchurch has one of the lowest labour turnover rates in New Zealand. The lower cost of living than some North Island centres has earned the area a reputation of being able to obtain high-quality labour at wage rates slightly lower than Wellington or Auckland. With its diversification of industry, Christchurch is becoming prominent in the export of manufactured goods.

Christchurch had wide representation on the recent trade mission to South-east Asia and one local company,

which has sold dry ice plant to such countries as West Berlin, United States, and parts of South-east Asia, gained nearly £500,000 worth of business. Signs of economic growth in the area are obvious: both in the city centre and in the suburbs, industry is expanding. Near the centre of the city, a Christchurch biscuit factory, established more than 100 years ago, has completed a large new factory expansion and today its products are sold not only in New Zealand but are being air-freighted to Australia. Only a few minutes walk from Cathedral square, a shirt manufacturing company, founded during the First World War in one room at 10s a week rent, employs 400 persons in its five-storey factory and its two branches at Kaiapoi and Lyttelton. Besides selling its products throughout New Zealand, the company has developed an export market and today sells its highgrade shirts in Hong Kong. In the suburbs, too, industry is showing rapid development. Older industries are extending their factories and installing modern machinery while new modern factories are being built. Jet Boats

A company established in 1939, as earthmoving contractors, is now known throughout the world for its jet boats, while locally, its steel fabrication and hydraulic work has helped to develop it into one of New Zealand’s leading industrial engineering companies. In the suburbs, such as Hornby, Bromley and Papanui, the expansion of existing industries and the establishment of new industries are providing employment for local residents.

Only a few weeks ago, a company specialising in alarm systems opened its new 11,000 sq ft factory at Bromley, and a few days later on the other side of the city at Upper Riccarton, a cable-making factory opened its polyvinyl chloride compounding plant. This plant, which reflects the development of industry in depth, allows the company to import its P.V.C. materials in less processed state. Previously it was imported in pellet or granule form ready for use as a insulator or covering for copper wire. The cost of this unit, including building, was £95,000, but the saving in overseas funds in the first year of operation is estimated to be £105,000.

Rubber Works Industry in Christchurch is widely representative. One of the largest industries is the rubber industry, which in this area employs 68 per cent of the persons in the New Zealand rubber industry. Although Christchurch has only 9 per cent of New Zealand’s population, the 30,000 industrial workers represent nearly 14 per cent of New Zealand’s industrial work force. However, besides the

rubber industry, there are many Christchurch industries, which have a larger share than 14 per cent of their particular industry’s New Zealand work force. These include the agricultural and pastoral machinery manufacturers, 40 per cent; the glass works, 35 per cent; electrical machinery, 28 per cent, and footwear other than rubber footwear, 28 per cent. Building Christchurch’s growing population has stimulated residential building. In recent years, many flourishing, new suburbs have been created and local industry is supplying many of the materials and components used in the construction of these modern houses. From local factories into new modern homes go Christchurch-made electrical wiring, switches. water heaters, joinery, doors, including the locally-made plywood, stainless steel and laminated plastic sink tops, roofing tiles, bricks and concrete blocks, wallboards, lamp shades, fibre glass baths and basins, and electrical stoves. While industry is developing in the Christchurch area it is to a certain extent handicapped by the distance to major North Island markets. However, changing transport trends—bulk handling of cargo, rail ferry, and “roll on-roll off” ferries—could result in more economic transport to the major markets. The Canterbury Manufacturers’ Association has made submission to the Government for the introduction of differential freight rates, and, if these are introduced, it would no doubt give industrial growth throughout the South Island additional impetus. These submissions, which have been supported by organisations such as North Canterbury Federated Farmers, and the Canterbury Progress League, are at present under investigation by the Department of Industries and Commerce, which will prepare a report for consideration by the Government. Freight Incentives The Labour Party, too, has expressed an interest in freight incentives. Party spokesmen have said that the Labour Government would introduce these for South Island industries. With Christchurch’s expanding population, the pattern of accelerating progress will continue. Local industry will continue to expand and meet the demands to supply more of the needs of this growing population.