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Will the budget boost small firms? Not in the way we might think

Rod McNaughton, University of Auckland, Waipapa Taumata Rau With the lid lifted on Budget 2026 many small and medium New Zealand businesses will be poring over the detail to see what it has in store for them. Many may come away disappointed. With the government having been upfront about its spending constraints, this budget was never likely to deliver a large new package for small firms. Instead, the budget delivers a mix of smaller compliance changes, infrastructure spending and energy transition support. It also includes funding for advisory services, digital systems, early-stage capital initiatives and small-business capability programmes, alongside changes to research and development support. It might be asked whether this mix of small initiatives adds up to anything that will lift productivity. But aside from offering direct support, budgets can also act as useful signals from government. On this test, this budget appears strongest on encouraging restraint and resilience in a difficult economic environment, even if it is less clear how ordinary small and medium firms are expected to become more productive. That is important because New Zealand’s productivity problem will not be solved by large firms, infrastructure projects or high-growth startups alone. It also depends on whether thousands of everyday businesses can lift capability, adopt technology and improve margins. There is an important distinction here. Business support helps firms navigate rules or cope with pressure. Productivity policy helps firms change how they create value. If we look closely, there are measures in the budget to assist in both areas. The hidden small-business budget Several budget initiatives are relevant to small firms. Simplified fringe benefit tax rules for private motor vehicle use will be welcomed by owner managers, trades businesses and service firms. Removing detailed logbook requirements may not sound transformational, but compliance time is time taken away from customers, […]

Manufacturing excellence celebrated at annual awards

NZ Manufacturer Manufacturing awards presented during EMEX 2026. The people and businesses driving innovation, growth and resilience across New Zealand’s manufacturing sector have been recognised at the second annual Minister for Manufacturing Awards. “This year’s finalists have set the bar for excellence in modern New Zealand manufacturing,” says Minister for Small Business and Manufacturing Cameron Brewer. “Innovation and strong execution are critical to staying competitive in a challenging global environment and manufacturing remains vital to New Zealand’s future prosperity. “Manufacturing contributes around $22 billion a year to our economy and makes up roughly 60 per cent of our goods exports,” Mr Brewer says. “Beyond the numbers, it anchors our regions, strengthens supply chains, and turns ideas into globally competitive products, making a big impact. “The awards recognise what excellence looks like in practice: businesses investing in their people, improving processes, and adopting new technologies to lift productivity and performance. That’s what keeps the sector moving forward, even as cost pressures and global uncertainty persist.” Since taking on the Small Business and Manufacturing portfolio in early April, Mr Brewer has visited many manufacturing businesses nationwide and will continue to engage directly on the factory floor and with the Manufacturing Productivity Advisory Group (MPAG) in the coming months. “This Government is committed to backing manufacturing by getting the basics right, supporting investment, skills, innovation and trade, so businesses can build their future and grow, compete and succeed,” Mr Brewer says. “Congratulations to all finalists and winners. Your leadership and ambition are helping shape the future of New Zealand manufacturing.” 2026 Minister for Manufacturing Awards winners: Excellence in Process Innovation: Supported by Swell Architectural Glass Products Architectural Glass Products was created to solve a growing market need for dependable, high-quality double-glazed glass supply in New Zealand. Through advanced automation, purpose-built systems and a culture […]

Critical materials: the hidden supply chain risk for manufacturers

By Jim Goddin, Head of Circularity at thinkstep-nz The Iran crisis has exposed a hard truth for global business: supply chains are only as resilient as their weakest link. When conflict disrupts major trade routes, the effects spread quickly through the wider economy. The immediate shock may be geopolitical, but the underlying business problem is dependence. Too much reliance on fragile external supply chains leaves companies exposed when conditions change. This is where critical materials come into focus. For years, discussion has centred on critical minerals such as lithium, cobalt and rare earth elements. These matter, and governments are right to worry about them. But for business, the more immediate issue often sits further along the value chain. What matters operationally are critical materials: batteries, magnets, alloys, catalysts and electronic components that deliver the performance modern products depend on. These materials are often hidden within products, used in low concentrations and difficult to substitute without losing performance. They are also tied to long, complex and fragile global supply chains. That makes them a resilience issue, not just a resource issue. For New Zealand manufacturers, this matters because distance, scale and reliance on imported components can amplify disruption. Many manufacturers operate in specialised markets where a single component, supplier or shipping route can determine whether production continues smoothly. Resilience is not only about holding more stock. It is about understanding where value sits, where dependencies exist and how materials can be kept working for longer. The transition to renewables must also be resilient None of this is an argument against renewables. Quite the opposite. Greater use of renewable energy is critical because continued dependence on oil and gas leaves economies exposed to repeated price shocks and geopolitical disruption. But the transition brings a second challenge. Many renewable and low-emissions technologies […]

A New Service to Power Your Projects

We’re heading back to EMEX 2026, and this year we’ve got something new to share. Complex projects rarely sit neatly inside one discipline. Electrical design, automation, controls, mechanical design, commissioning, and documentation all need to line up. We’ve introduced Automation & Controls so we can support clients across more of the engineering work it takes to get complex projects delivered. From mechanical design and project engineering through to electrical design, automation, commissioning, and documentation, our goal is to help keep the technical pieces connected and moving. Caliber Design has been supporting New Zealand engineering companies for 11 years, working with more than 300 companies across 1200+ projects. Our model is simple: we provide talented engineers on a seconded basis, embedded in your team, working within your systems, standards, and processes to help get projects over the line. Until now, that’s meant mechanical design, FE analysis, product development, and project engineering. With our new Automation & Controls service, we can now support clients across a broader mix of disciplines. Our degree-qualified engineers can support electrical design, PLC, HMI and SCADA development, commissioning, documentation, and project support, while you retain full control and ownership of the work. We’re also contributing to the EMEX seminar programme. Daniel du Plessis, our Auckland Regional Manager, is presenting Project Plans Don’t Solve Technical Problems on Wednesday 27 May at 2pm. Dan’s session looks at the gaps that can open up between design, procurement, fabrication, installation, and commissioning, and how technical leadership can support more successful outcomes. EMEX is always a great chance to celebrate the depth of Kiwi engineering and manufacturing innovation. We’ll be keeping an eye out for stories for our monthly Celebrating Kiwi Innovation newsletter. If you’d like to be featured, come and find us at Stand 1015. We currently have vacancies throughout the […]

Listening harder in a noisier world

By EMA Head of Membership and Export Simon Devoy If there’s one thing Kiwi manufacturers and exporters don’t need in 2026, it’s more noise. Between tariffs, geopolitical tensions and the return of supply chain disruption, clarity is harder to find. That is why the ExportNZ DHL Export Barometer matters, and why more manufacturers and exporters need to contribute to it. The EMA supports ExportNZ’s work north of Taupō, connecting exporters across the Upper North Island into a national advocacy voice. That voice is only as strong as the evidence behind it. The Barometer is one of the clearest ways we can cut through uncertainty and influence the policy and support settings that shape global competitiveness. The 2025 results showed resilience under pressure. Nearly half of exporters increased export orders, and a further third held steady. That performance stands out given the backdrop. Beneath that headline, serious pressures remain. Logistics continues to be the number one constraint. Even as shipping costs remained high but relatively stable, 72 percent of exporters still cited shipping costs as a supply chain impact. With continued instability across key global trade routes, those costs are again under pressure. For manufacturers operating on tight margins, this directly affects competitiveness. At the same time, concern about global trade tensions has increased sharply. The proportion of exporters worried about escalating trade wars has more than doubled year on year. Tariffs, particularly in the United States, are adding complexity, even where the full impact is still unfolding. There is also clear opportunity in the data. Manufacturers and exporters are adapting by developing new products, strengthening their digital presence, and exploring new markets. The United Kingdom and Japan are gaining traction, while Australia and the United States remain core markets. These insights directly inform the EMA’s annual Global X Summit, which […]

Delivering Productivity at EMEX 2026

Ian Walsh, Partner, Argon & Co For over 20 years, we have helped hundreds of New Zealand businesses improve productivity and increase EBIT. The outcomes are practical, measurable, and often achieved without significant capital investment. For example: A plastics manufacturer increased throughput by 60%, with the same labour cost A food manufacturer reduced waste by 50%, saving more than $1 million annually An electrical manufacturer improved assembly productivity by over 30% These results come from looking at the whole system: people, processes, technology, and the underlying causes of performance issues. By applying the right methodologies and tools in practical ways, we deliver meaningful outcomes within short timeframes. Working alongside businesses, we build internal capability, so improvements are sustained long after the initial work is complete. If you would like to know more, come and see us at EMEX. We will be running a competition to help you understand how productive you are today, and how much more productive you could be. We will also be speaking on these topics during the event. We look forward to seeing you there.

Lessons from the 1%

Success isn’t what you start. It’s what you don’t stop. When you spend time inside New Zealand’s best manufacturing businesses there’s a pattern that shows up again and again. They don’t launch more initiatives They don’t chase the latest tool They don’t rely on heroic effort or last‑minute pushes. They keep doing the basics. Day after day, week after week. Long after most other businesses have moved on to something new. David Altena is Head of Growth & Partnerships at SpartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions Not because they have better ideas. But because they’re more disciplined about the unglamorous ones and that is where the real performance gap opens up. Ask most manufacturers what separates the best businesses in their sector from the rest, it’s likely you’ll hear a familiar list: better equipment, smarter technology, bigger balance sheets, the best people. Attributes that feel largely out of reach. Rob Bull is Director of the New Zealand Lean Academy. rob@nzla.nz Strip those answers back and they share a common thread, the belief that top performance is driven by circumstances you can’t replicate. The truth is harder, and more uncomfortable. The advantage of the 1% isn’t what they know. It’s what they refuse to let slide. World-class manufacturers don’t have better luck or bigger budgets. They do the hard, boring, strategic work, consistently. That should be the most motivating fact in New Zealand manufacturing right now. “Anyone can buy the equipment. It’s culture and operational excellence that set you apart.” Dave Bunting, Managing Director, Architectural Glass Products Dave Bunting put it plainly in an episode of The Better SMB Podcast: the equipment is not the advantage. Any competitor can buy the same press, the same CNC, the same ERP system. What doesn’t come off the […]

Leadership: The difference between the plan you have and the results you get

Adam Harvey, Business Performance Partner – Manufacturing , The Learning Wave You can feel good leadership before you see it. A strong shift hums. There’s a rhythm: Clean handovers, problems solved where they happen, and a team that knows what “good” is. Output is steady. Waste is controlled. The team owns it. You can feel a weak one too. The plan exists…somewhere. Standards are vague. Rework builds without anyone asking “why”. And when you’re in it, it feels like you’re constantly chasing your table. Most manufacturing businesses don’t have a strategy problem. They have a leadership one. The productivity illusion Right now, the industry is full of intent. We’re chasing efficiency with everything we’ve got. New systems. Dashboards. Automation. Continuous improvement programmes. Everyone is chasing that extra 2% of output. It feels like progress. But if your leaders on the floor can’t lead performance, none of it sticks. If they can’t set clear expectations, keep the team focused on what matters, and have the tough conversations when standards slip, you haven’t improved performance. You’ve just made inefficiency faster. It’s like putting a faster engine into a car with no steering. It moves. But not where you need it to. Where the performance actually leaks Most leaders can’t pinpoint where the operation is losing performance because it doesn’t show up as one big issue. It leaks. A missed standard. A shortcut. A conversation avoided. A problem escalated that should never have left the floor. Individually, small. Across a shift, expensive. The biggest leak is “silence on standards”. Every time a leader sees something off and says nothing, the standard drops. And once it drops, it spreads. Most frontline leaders aren’t underperforming because they don’t care. They’re stuck. Reacting. Firefighting. Being the best operator instead of the best leader. But the moment […]

Data, Decisions, and the Drive for Productivity, A Digital Path to World Class Performance

Article 3: V2 –By Neil Robinson, a Senior Business Consultant with Argon & Co (Auckland) specialising in productivity improvement, Lean systems and capability building. If you’re reading this third article in the series, you already know that New Zealand manufacturers face a difficult reality: our productivity lags many of the countries we compete with. Labour is tight, costs continue to rise, and customers expect more value delivered faster and with fewer errors. This situation demands stronger, more reliable processes. Many operational leaders feel this pressure daily. The question is no longer “Should we improve?” It’s “How can we improve quickly, sustainably, and with the people we already have?” The good news is that there is a practical way forward. More leaders are turning to hands-on capability building, such as the 4×4 Simulation, to lift performance from the inside out. In Article 1, we explored how teams experience the shift from chaos to flow. In Article 2, we looked at how the deeper two-day version helps participants understand why improvements work and how to apply them in their own workplace. Now we arrive at the next evolution: the Digital 4×4 Simulation, where participants combine practical learning with real-time operational data to accelerate improvement. 1.1 Why New Zealand Needs This Now New Zealand’s productivity challenge is well documented. We work hard, often very hard, but too often our processes let us down. Unreliable flow, inconsistent standards, firefighting, quality escapes, poor teamwork, unbalanced workloads, and slow changeovers all eat into profit. Software alone is not the answer. Automation alone cannot fix this. Even continuous improvement programmes struggle if the foundation of process stability is not in place. This is why the Digital 4×4 matters. It helps teams see, understand, and improve the behaviours and systems that control productivity, then strengthens that learning with […]

EMEX is with us again

From May issue, NZ Manufacturer magazine The latest version, EMEX 2026, is mere days away. The most focussed trade fair for manufacturing businesses in New Zealand continues to display the latest and advanced equipment and technology which our companies require to improve their levels of Productivity and to make better their chances of success on local and export markets. There is no getting away from the fact that New Zealand’s future depends on continuing to find avenues overseas for our quality products. We can’t, of course, guarantee markets. We strive to be product perfect and cost competitive, in a cluttered world where it is everyone for themselves. And the technology and expertise from EMEX 2026 can help your company get there. There is a real plethora of events for your interest, including the Make NZ Industry Conference; the Epicor Knowledge Theatre; Harnex AI Workshops; the Minister for Manufacturing Awards; plus, a host of Industry Speakers, including Ian Walsh from Argon & Co and David Altana from The Better SMB, to bring you up to date with expert advice for better business. Enjoy the trade show, savour in the experience, make new business contacts and make every second count as you network for your company’s future. -Doug Green, Publisher, NZ Manufacturer magazine

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Posts by Doug Green: