New Zealand’s manufacturing sector has stepped firmly into the fourth industrial revolution, with a 10.5 percent increase in the use of advanced manufacturing technologies since 2023, as shown in the final Industry 4.0 Insights Survey by Callaghan Innovation.  

The Industry 4.0 programme was launched to build awareness and educate New Zealand’s manufacturing sector about the powers of digitisation and connectivity in manufacturing.

And, while it’s achieved this goal with 80 percent of Kiwi manufacturers aware of the programme, for Sean Doherty, Industry 4.0 Product Manager at Callaghan Innovation, the real impact has been how quickly that awareness has turned into action.

“What seemed experimental five years ago, has quickly become business as usual for many Kiwi manufacturers,” he says.

“Manufacturers are increasingly recognising the value of advanced technologies as essential tools for growth and resilience. We now have nearly 40 percent of the workforce implementing Industry 4.0 technologies.” 

From AI and robotics to real-time data tracking, manufacturers are turning to smart technologies to lift productivity, improve quality and modernise operations. It’s already seen that Industry 4.0 technologies such as AI, digital twins or cloud technology are able to increase productivity by 15-30%.

Supporting this momentum, the recently introduced Investment Boost scheme offers manufacturers an immediate 20 percent tax deduction on eligible machinery and equipment purchases.

“Capital investment often presents a significant challenge for manufacturers,” says Doherty.

“This incentive helps lower that barrier to entry, making it more feasible for businesses to invest in automation, AI and other advanced tools. It’s a promising development and will help keep momentum built through Industry 4.0.”

However, Doherty stresses that “technology alone isn’t enough, investing in people and company culture is critical for lasting success.” 

To view the full Callaghan Innovation Industry 4.0 Insights Survey report, visit: https://www.callaghaninnovation.govt.nz/assets/documents/Industry-4-0/2025_Industry4_Insights_Survey_FINAL.pdf