By EMA Advocacy and Stakeholder Engagement Lead Joanna Hall
New Zealand’s vocational education and training (VET) system stands at a defining crossroads. After years of sweeping reforms, financial pressures and structural upheaval, the Education and Training (Vocational Education and Training System) Amendment Bill now before Parliament offers a rare opportunity to rebuild confidence, lift quality, and finally deliver a system that serves both learners and employers.
But to get there, we must face some uncomfortable truths about the current state of play, especially for manufacturers who continue to shoulder some of the heaviest burdens of our skills challenges.
At the Employers and Manufacturers Association (EMA), we represent small family manufacturers through to major exporters. Despite their diversity, they all face a similar challenge: securing the skills and talent they need to grow.
For too many manufacturers, the promise of vocational education remains unfulfilled. They tell us the current system often does not meet their needs, forcing them to look for alternative training that better matches industry standards – even if that means absorbing extra costs or investing in programmes that fall outside formal NZQA credentials.
Nowhere is this disconnect more stark than with apprenticeships. Employers desperately want to grow their own talent, bringing young people into well-paid, sustainable careers. But they frequently encounter barriers that make the process far harder than it should be.
Many manufacturers highlight the heavy administrative burdens involved in taking on apprentices, from paperwork to managing assessments, which can overwhelm especially smaller firms. Others point to persistent quality and consistency issues. Too often, graduates or trainees arrive on site without the foundational skills, work readiness, or familiarity with modern equipment that manufacturers expect.
Underlying all of this is a more systemic problem: a vocational education system that has often developed qualifications and delivery models in isolation from the industries it is supposed to serve.
The new Bill now before Parliament is a critical opportunity to reset these relationships. But if we are to truly deliver a system that meets both learner aspirations and labour market needs, it will demand a far stronger, more genuine partnership with industry than we have seen to date.
The proposed creation of Industry Skills Boards (ISBs) could be a positive step, but only if they are given clear mandates, robust funding and real influence.
We need ISBs that are not just passive advisors but active participants in workforce planning. They should bring together deep insights into emerging skill requirements, feeding this intelligence into schools, tertiary education, immigration settings and careers advice.
This is a great opportunity to develop an integrated workforce skills strategy, looking across all levels of education/training and all industries, to ensure as a country we understand what skills are needed, how we’re going to train and hire for these, and how we communicate future opportunities within industries like manufacturing to our young people and job-seekers.
Without such alignment, we will continue lurching from skill shortage to skill shortage, never addressing the root causes.
Manufacturers also want to see far stronger quality assurance and monitoring of training providers. It is critical that providers are held accountable not just for ticking boxes, but for delivering graduates who are truly ready to step onto factory floors, work safely and contribute productively.
This is particularly urgent given how rapidly manufacturing is evolving. Digital systems, automation, advanced materials and precision engineering are transforming workshops across New Zealand. We need a vocational education system that is nimble enough to keep up and is continuously updating training content to reflect new technologies and practices.
At the same time, proposals in the Bill, such as lowering thresholds for imposing compulsory industry training levies, risk alienating businesses at precisely the moment we need them on board. Many manufacturers already invest heavily in upskilling their people. Imposing levies without clear benchmarks for broad industry support could undermine goodwill and further disengage employers from a system they already view with scepticism.
Our message to policymakers is simple: work with us, not around us. Use the expertise that sits within industry to shape qualifications, delivery and pathways that are genuinely fit for purpose. Recognise the vital role that industry bodies like the EMA can play – not just as advocates but as partners in areas like training, support, industry engagement and advice.
This is also a time for realism. The sector has been through near-constant flux over the past decade, breeding deep uncertainty for both learners and employers. The changes now proposed are ambitious, timelines are tight, and many practical details are still missing. Without careful planning and authentic collaboration with industry, we risk repeating the mistakes of the past and squandering yet more employer trust.
At the EMA, we stand ready to work with government, educators and other partners to build a system that is collaborative, responsive, and focused on quality outcomes. This is not just about manufacturers’ interests, it’s about opening up meaningful, future-focused pathways for New Zealanders into secure, rewarding careers. It is about boosting productivity and lifting our nation’s prosperity.
We cannot afford to get this wrong. Let’s seize this moment to finally create a vocational education system that truly works for both industry and learners. Manufacturers are ready. We hope the system will be too.