The most recent trends in the development of manufacturing have again been greatly affected by the old problem of balance of payments. During the last part of 1957 export prices (particularly for dairy products) fell alarmingly, while at the same time the level of importing was very high. The consequent drain on the country's overseas exchange reserves made necessary the imposition in January 1958 of much tighter exchange control and import selection, accompanied by stringent steps to restrain demand and by heavy overseas borrowing. Renewed emphasis was placed on industrialisation, not only to produce internally what the country could not, in the short term, afford to buy from abroad, but also in an attempt to reduce the vulnerability of relying for export income on a few farm products – a fact that was becoming widely recognised. Greater diversification was seen as at least a partial answer, since it would expand the range of export goods. Development in depth was also needed; a concept entailing the importation of raw materials or partly finished goods so that goods made in New Zealand for the home market would have the greatest local content and so enable more goods to be available to the New Zealand market for a given expenditure of foreign exchange than would otherwise be the case. Similarly, the aim with exported products was the manufacturing or processing of the country's own raw materials or products as much as possible before export so that the greatest amount of foreign exchange could be earned.

These policies implied that the manufacturing industry should be helped to develop as quickly as possible. One of the major and significant steps taken by the Government was to call an Industrial Development Conference in the middle of 1960 to give representatives of the main organisations concerned with economic development the chance to discuss the methods needed and the obstacles to be removed if industry were to be developed quickly and effectively. That New Zealand had already taken considerable steps to diversify and develop its manufacturing industries was well shown by a schedule prepared for the conference. This set out details of new manufacturing projects and development of existing projects, which had started in New Zealand between January 1958 and June 1960 or for which firm plans had been made during that time. The schedule covered most of the projects that had taken place or were to come. These included over 240 new or expanded projects, with new capital investment of approximately £73 million and additional annual production of about £68 million once the projects were all in operation.

Again the trend noted earlier was repeated. Most of the new projects were based on imported materials; the development or expansion of existing industries was usually based on local materials. Among the most important projects were an oil refinery, great expansion of the pulp and paper industry, plans for substantial increases in the New Zealand content of motor vehicles, and the production of motor scooters in New Zealand. New products included fork-lift trucks, marine jet engines, television receivers and tubes, plastic footwear, wire ropes, aluminium extrusions, merchant bars, self-adhesive tapes and labels, wallpaper, instant coffee, and gin. Some industries expanded significantly: woollen piecegoods and blankets, carpets, knitwear, hosiery, beverages, milk-powder compounds, animal vaccines, synthetic resins, metal windows, plaster board, asbestos-cement pipes, sliding-door gear, electric steam irons, and pop-up toasters. The trend of new developments in manufacturing industries has been continued.