ACC's Investment in NZ Manufacturing Sector to Boost Safety and Growth

ACC Minister Scott Simpson highlighted the importance of prioritizing injury prevention as a vital component of improving the overall health and wellbeing of New Zealand workers.

The New Zealand Government is taking a significant step forward in addressing the growing concern of workplace injuries in the manufacturing sector through an investment from ACC (Accident Compensation Corporation). This initiative is set to not only reduce harm but also ensure the financial sustainability of the ACC scheme, which is crucial for future generations, according to key government figures.

Addressing the Declining Performance of ACC

ACC Minister Scott Simpson highlighted the importance of prioritizing injury prevention as a vital component of improving the overall health and wellbeing of New Zealand workers. “One of my top priorities with ACC is addressing its declining performance while ensuring its long-term financial sustainability,” Mr. Simpson stated. He further emphasized that preventing injuries from happening in the first place is a cost-effective and essential strategy to both protect workers and control ACC’s expenditures.

To this end, ACC has been actively collaborating with the Employers and Manufacturers Association (EMA) in co-designing a comprehensive Harm Reduction Action Plan for the manufacturing sector. This plan, developed in 2024, outlines a range of strategies aimed at reducing workplace injuries, promoting safety, and ultimately driving better health outcomes for both workers and businesses. As part of this initiative, ACC is now looking to partner with a supplier who can bring fresh insights from the industry, as well as develop evidence-based programs and solutions to tackle injury prevention effectively.

Manufacturing Sector: A Pillar of Economic Growth

The manufacturing industry plays a critical role in New Zealand’s economy, contributing to over 60 percent of the country’s exports and employing nearly 230,000 people across approximately 23,000 businesses. Small Business and Manufacturing Minister Chris Penk emphasized the vital role the sector plays in driving economic growth while also facing challenges in improving workplace safety.

“Manufacturing is one of the most significant drivers of economic growth in New Zealand, but it is also the only major industry where work-related injury rates have not seen a decline over the past decade,” Mr. Penk noted. “As a high-risk sector, manufacturing remains a key area of focus for ACC in reducing the cost of claims and ensuring the wellbeing of workers.”

Despite its importance to the national economy, manufacturing continues to face serious challenges related to worker injuries. With its high-risk nature, the sector has seen stagnant injury rates, making it a priority area for ACC's ongoing efforts to reduce the financial burden of claims.

High Injury Rates and Rising Costs

The current situation highlights the urgency of implementing long-term initiatives to address the high rate of injuries within manufacturing. The costs associated with workplace injuries in the sector are staggering, with total annual ACC claims exceeding $165 million. As these claims continue to grow, the pressure on businesses and the ACC scheme increases, further exacerbating the need for effective and sustainable solutions.

Mr. Simpson is optimistic about ACC's commitment to working collaboratively with the manufacturing industry to tackle these challenges. “We are focused on reducing workplace harm, not only to protect workers but also to help businesses lower costs and remain competitive,” he said. By introducing tailored initiatives and fostering collaboration, the goal is to reduce the financial burden of workplace injuries while ensuring manufacturers continue to drive economic growth and innovation in New Zealand.

Next Steps and Call for Tender Submissions

In line with this ambitious plan, ACC is now moving forward with the next phase: finding a supplier capable of integrating industry insights and developing practical solutions. The selected supplier will work alongside ACC and industry stakeholders to develop evidence-based strategies to reduce the incidence and severity of workplace injuries.

The Government has made it clear that this initiative requires a robust and transparent procurement process. ACC expects to receive comprehensive proposals from potential suppliers, with a view to ensuring that the best possible solutions are implemented to address the sector's needs.

Businesses, industry leaders, and interested parties are encouraged to submit their responses to the tender via the New Zealand Government Electronic Tender Service (GETS) or directly to procurement@acc.co.nz by 12pm on Tuesday, May 13, 2025.

By proactively addressing these issues, the New Zealand Government and ACC aim to make a lasting difference in the manufacturing sector, reducing harm to workers while ensuring that New Zealand’s manufacturing industry remains a key driver of economic prosperity.