From December NZ Manufacturer magazine, The Year in Review

If 2024 was the year of “survive to 25”, what will 2025 bring?  Many businesses this year were very focused on managing cost, avoiding unnecessary spending and looking to how they can improve their productivity to improve returns.

Of course, many of the traditional levers had already been pulled, so many businesses did not have a lot of fat to start with, so cost reduction did not offer a lot of opportunity. The need to avoid borrowing (due to interest rates), precluded a lot of capital options either new kit, or technology meaning many have relooked at productivity.

The reality is many don’t know where to start, because they are unable to see how you could get more from the current team, given everybody is already working so hard.

However, this is exactly what must happen, the reality is NZ has been lagging the world in the adoption of best practices, improvement techniques, workforce development for over 40 years. We now have a burning platform!

So, my hope for 2025 is:

1. We see an increased adoption of lean techniques and tools and a genuine interest to properly adopt these tools across all sectors of industry. These are proven globally for over 60 years; the key is the right sponsorship and the right sherpa.
2. As business starts to recover, we see adoption of AI/automation tools to support item 1 above. The tools are not a solution in themselves but help build capability and can supercharge the productivity journey. The SIRI assessments supported by government have been helpful in getting business started on this journey, let’s hope this continues next year.
3. A unified approach to leadership and team capability development, with Te Pukenga, NZQA and other parties becoming aligned in the need to develop alongside business real capability to address our gaps.

With the rate of acceleration of enabled productivity and Industry 5.0 on the horizon, the need to change and change rapidly if we want to stay competitive is greater than ever.

If you have been thinking about this journey, now is the time to start your climb to world class. I wish you all the very best of the season and for 2025!