Six tool-making companies have joined forces to increase their international competitiveness.
The New Zealand Tool & Die venture includes companies with expertise in the whiteware, electronics, medical, aviation, automotive, marine, packaging, plastics and light metal manufacturing industries.
The move appears to have paid off as the grouping secured contracts worthA$400,000 ($440,000) in its first few months of operation, and include being named "preferred supplier" to Swedish appliance-maker Electrolux.
The venture's Melbourne-based general manager, John Croft, says the cluster initiative is a response to the growing competition from Asia.
"The cost structures in many Asian countries and the work practices of operating 24 hours a day, seven days a week, allow them to dramatically reduce their costs and their lead times, making their manufacturing industries highly competitive," Croft said.
"In terms of quality, New Zealand tool-makers are highly respected internationally, but we also have to compete on cost and the speed of delivery."
Croft says the opportunities are significant.
The tool-making venture is working closely with New Zealand Trade and Enterprise.
