From February issue, NZ Manufacturer magazine

David Altena is Head of Growth & Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions

We are entering a familiar three yearly cycle of hesitation. As we flip into another election year, a subtle but pervasive “hush” descends over factories from Penrose to Invercargill.

Business cases for new CNC machinery get shuffled to the bottom of the pile. Recruitment for that much needed engineer is “put on hold until we know who is running the Beehive.”

Election years tempt businesses to pause, waiting for policy clarity. But in manufacturing, hesitation is costly. Whoever wins, the fundamentals won’t change. Capability, capital confidence and innovation still matter.

Waiting is the real risk. We have been waiting for the miracle decisions every three years for decades. It is no surprise that the MBIE and Foreign Affairs Long Term Insights Briefing released in December 2025 still describes New Zealand as being stuck in a low-productivity rut. Another report to feed the lack of progress on this subject over the last 40-years.

“Wait and see” is not a strategy, it’s slow-motion surrender.

 

(Ab0ve)Rob Bull is Director of The New Zealand Lean Academy. rob@nzla.nz

Myth Busting: The “Pause Button”

Election-year uncertainty is the ultimate security blanket. It’s the perfect, explainable excuse for inaction, but let’s look at the reality of the productivity gap. New Zealand has struggled with a tail of underperformance compared to our OECD peers[1] and according to The Economist, New Zealand’s economic performance is now ranked 33rd (of 37) in 2024[2] (we were as high as 3^rd in the 1950’s!).

That gap doesn’t take a holiday because there are billboards on the side of the road and policy ideas thrown about like a lolly scramble. The truth is sitting there right in our face; we continue to fall behind the rest of the world. Every month spent deferring a capital investment or a process improvement is a month where performance stays stagnant and input costs like labour, energy and logistics continue their relentless climb.

“Pausing” assumes the world stands still with us. It doesn’t. Supply chains continue to shift, customer demands continue to evolve and technology continues its exponential curve. Waiting for political certainty is like waiting for the tide to stop moving before you decide to launch the boat. By the time you feel “safe,” the opportunity is gone.

Certainty is Overrated

We crave certainty, it makes us feel in control, we want to know exactly what the R&D tax credit environment will look like or what the minimum wage will be. But let’s face it…

Policy shifts rarely rewrite the fundamental laws of manufacturing.

After all, when was the last time you made a decision as a direct result of a government policy? When you were in the middle of a crisis on a Wednesday morning because your machinery is being pushed to its limits, then stepped back and considered the latest decisions from Wellington as part of your decision-making process?

Regardless of the election results, the core drivers of a successful Kiwi manufacturing business remain unchanged:

Capability: Do your people have the skills to make a difference to your business?

Capital Confidence: Do you have the balance sheet strength and the guts to invest for the future?

Innovation: Are you solving a problem the world will pay for?

The manufacturers who outperformed their peers during the disruptions of the last five years didn’t have the best political lobbyists; they were the ones maintaining their internal momentum regardless of the external noise.

They understood that operational excellence is a far more reliable hedge against inflation or policy shifts than any government grant could ever be.

Leadership Under Pressure: Decisiveness is the Only Currency

Election years are a litmus test for leadership. It is easy to lead when the sun is shining. True leadership is defined by the ability to provide clarity when the environment is murky.

In November, we discussed the idea that “True leaders multiply decision-makers.” There is no better time to test that philosophy than now.

If your leadership team is waiting for you to give the green light, and you are waiting for Wellington to give the green light, your entire organisation is paralysed.

Instead of defaulting to “wait and see,” use this year to lead decisively. Shift the narrative, ensure your team knows that while there might be a lot of distracting noise around you, the mission to be the most efficient, innovative producer in your niche remains unchanged. Uncertainty isn’t an excuse for a lack of direction; it’s a requirement for stronger, more vocal leadership.

Figure 2- Momentum compounds. Hesitation erodes it.

Action Beats Anxiety: Your 2026 Playbook

So, how do we move from anxiety to action? It starts with looking inward rather than toward Parliament. Here are four practical moves you can make while your competitors are checking the latest polls:

1. Benchmark Your Reality: You can’t manage what you don’t measure. Be ruthlessly honest about your own performance. How does your output per head compare to the best in your sector? Where are your bottlenecks?
2. Lock in Capital Plans Early: If you need that new robotic cell or that software integration to stay competitive, buy it now. Don’t wait for the Q4 rush when everyone else suddenly decides they have the “certainty” to spend. Securing your intended upgrades early often leads to better terms, faster installation windows and a head start on the learning curve.
3. Double Down on Your Customer: Political cycles don’t change what your customers need. They still want quality, reliability and value. Use 2026 to deepen those relationships. Be the partner that is focused solely on solving your customers’ problems.
4. Build a 90-Day Performance Sprint: Break the “election year” into manageable chunks. Don’t look at 2026 as a bridge to 2027. Set 90-day targets for process improvement, business efficiency, or staff upskilling. Momentum is a self-fulfilling prophecy.

The future of your business doesn’t depend on who sits in the Beehive; it depends on the people leading and who is on your factory floor. The manufacturers who win in 2026 won’t be the ones who were “lucky” enough to guess the election result. They will be the ones who were decisive enough to ignore the noise.

Stop waiting for perfect conditions. They don’t exist. In the race for global relevance, the only real risk is standing still.

[1] https://www.elibrary.imf.org/view/journals/018/2025/075/article-A001-en.xml

[2] https://www.rnz.co.nz/news/business/537075/nz-ranks-low-in-global-economic-comparison-for-2024