The new GDP figures show the economy dropped by 0.6 percent last quarter.
Manufacturing fell the furthest, it's down 1.9 percent.
The Employers and Manufacturers Association says investment in advanced manufacturing will drive up New Zealand's productivity and increase wages.
The centrepiece of their plan is a scheme to accelerate depreciation writeoffs for equipment.
EMA head of advocacy and strategy Alan McDonald spoke to Corin Dann.
