Analysis

Article 2: The Crucial Role of System Integrators in Industry 4.0 and Automation

-Frank Phillips, Director, Fulcrum Welcome to the next part of our Industry 4.0 series for SME manufacturers. We’re exploring various companies that can help you embrace advanced technologies and optimise your operations. Today’s focus: System Integrators. Let’s dive in and see how they can drive your business success. System Integrators: The Orchestrators of Connectivity In the realm of Industry 4.0 and automation, system integrators are the maestros who ensure that all the pieces of your technological puzzle work seamlessly together. These companies specialise in connecting various automated systems, ensuring smooth communication and integration between hardware and software components. They act as the bridge that links different technologies, creating a harmonious and efficient manufacturing environment. Maximising Efficiency: How System Integrators Add Value Engaging a system integrator can significantly enhance your manufacturing operations by ensuring that all automated systems and technologies work in unison. Manufacturers facing challenges like disjointed processes, data silos, and inefficiencies can benefit greatly from the expertise of system integrators. By creating a unified system, these professionals help optimise workflows, reduce downtime, and improve overall productivity. System Integrators tend to have significant cyber security knowledge. When establishing a wider Operational Technology (OT) environment they can be key partners to keep your business secure. Journey to Integration: Typical Engagement and Resource Requirements The process of working with a system integrator typically begins with an assessment of your existing systems and a thorough understanding of your integration goals. This phase involves site visits, technical evaluations, and collaborative discussions to identify integration opportunities and challenges. The system integrator then designs a customized integration plan tailored to your specific needs. Expect to allocate internal resources, including IT personnel, operations managers, and system administrators, to collaborate with the system integrator. The engagement can range from a few weeks to several months, depending on the […]

Double materiality: What it is and why it matters to manufacturers

Sustainability isn’t just about ticking boxes for your next report. It’s about seeing the big picture – how the world is affecting your business and how your business is affecting the world. That’s the idea behind double materiality, and it’s something manufacturers across New Zealand should start paying attention to. Read our Need to know: Double materiality guide or get in touch with thinkstep-anz’s expert Martin Fryer to talk through what this could look like for your business. This approach goes beyond compliance. It can help you build a more resilient business, unlock opportunities and manage risks – whether you’re exporting food and beverages, building homes or making parts for machinery. What is double materiality? Double materiality means looking at sustainability from two perspectives: Impact materiality: how your activities affect the environment, society and economy. Financial materiality: how environmental and social issues affect your financial performance, risks and long-term success. This approach is already required in some parts of the world. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) mandates it. Even if you don’t export to the EU, it’s likely your customers or investors will start asking for the same level of transparency. Why does this matter in New Zealand? Even though New Zealand’s reporting regulations currently focus more on financial materiality, there’s growing interest in taking a broader approach. Why? Because it makes business sense. Let’s look at a few examples: Food and beverage manufacturing Impact materiality: The way you source ingredients matters. Are you contributing to deforestation, water stress or unethical labour practices? Financial materiality: If global retailers tighten their supply chain standards (as many already have), you could lose access to key markets unless you can prove your practices are sustainable. What you can do: Use certified ingredients, invest in traceability, or switch to […]

Remanufacturing 101: Reviving parts, reclaiming value

The remanufacturing market unlocks opportunity across sectors for higher margins, affordability, and supply chain resilience. Remanufacturing, the process of restoring used parts to give them a second life, has propelled into the spotlight in recent years by attempts to mitigate supply chain shortages, reach new customers through affordability, and search for high-margin alternatives for parts. Both independent remanufacturing companies and remanufacturing arms within OEMs have proved essential for efficiently restoring parts and creating a way to lower expenses while making operations more efficient. These players provide value across multiple industries, from the well-established space in the automotive sector to more emergent opportunities across sectors such as medical devices and electronics. All of these sectors can benefit from reduced dependence on raw materials, extended product life cycles, and more. But remanufacturing is an inherently complex process, and the industry faces unique challenges. For example, remanufacturers grapple with the unpredictable availability, quantity, and quality of incoming used parts (referred to as “core”), complex pricing due to the volume and long tail of SKUs, and a high volume of unstructured, text-based data generated by product warranty claims. What is remanufacturing? Remanufacturing is the process of restoring core to give it an entirely new life. The core, the starting point for the remanufacturing process, is typically a high-value part that requires technical expertise to be restored to its original function. Within the automotive and industrials industry, parts that can be remanufactured include engines, transmissions, hydraulic components (such as bucket lifters), and drivetrain components (such as clutches and axels), as well as turbochargers and superchargers. Historically, the automotive and industrial equipment industries have had the most use cases for remanufacturing, but a growing number of use cases are emerging in industries such as medical devices, furniture, electronics, and aircraft components. The remanufacturing process typically involves seven […]

Navigating the tariff maze: How NZ manufacturers can thrive amid trade tensions

Adam Sharman, CEO LMAC Group APAC Tariff turbulence: Understanding the impact on kiwi manufacturers. As trade tensions escalate globally, through the introduction of heavy tariff from the U.S. New Zealand manufacturers find themselves navigating increasingly complex waters. The United States is one of New Zealand’s key export markets worth approximately NZ$9 billion annually, and New Zealand products provide key components in other countries’ supply chains into the USA. The ripple effects of U.S. tariff changes extend far beyond simple price adjustments. When tariffs increase, manufacturers face immediate margin pressure, but also longer-term strategic questions about market positioning and investment priorities. For New Zealand’s primary sector, dairy processors, which have developed specialised ingredients for U.S. food manufacturers, tariff increases could undermine carefully cultivated market positions. Similarly, premium meat exporters who have invested heavily in sustainability certifications and farm-to-table traceability to command premium pricing, could see their value propositions challenged. The impact extends beyond agricultural processing. New Zealand’s high-tech manufacturing sector, including medical device manufacturers and precision agricultural equipment producers, faces similar challenges. For organisations that have established niches in specialised global supply chains where even modest tariff increases could significantly alter competitive dynamics, a focus on IP protection and maintaining certifications required for market access, for example in aerospace, pharmaceuticals and defence help protect market position, and reduce price sensitivity. Strategic pivot: Capitalising on trade war opportunities While tariff increases present challenges, they also create strategic opportunities. As tensions escalate between the United States and other major trading blocs, particularly Europe and China, New Zealand manufacturers could benefit from “tariff arbitrage” – situations where Kiwi products become relatively more competitive due to higher tariffs on competitor nations. Exporting organisations are required to think differently about their global market positioning, both in terms of direct market tariffs and the relative position […]

From Automation to Augmentation: How Industry 5.0 is Redefining Manufacturing

The landscape of manufacturing is undergoing a significant transformation as we transition from the principles of Industry 4.0 to the emerging focus of Industry 5.0. While Industry 4.0 emphasised automation and the integration of digital technologies into manufacturing processes, Industry 5.0 shifts the spotlight towards augmentation, fostering a harmonious collaboration between humans and machines. Evolution from Industry 4.0 to 5.0 Industry 4.0 brought a revolution by embedding automation and data exchange into manufacturing through cyber-physical systems, the Internet of Things, and cloud computing. The central aim was to streamline operations, reduce human intervention, and enhance efficiency. However, as we pivot to Industry 5.0, the emphasis broadens to include the critical role humans play alongside machines, leveraging the unique capabilities of both to drive innovation and adaptability. Key Differences: Automation vs Augmentation The shift from automation to augmentation marks a fundamental change. Automation focuses on machines performing tasks independently, effectively reducing human involvement in repetitive and labour-intensive activities. In contrast, augmentation enhances human capabilities. It is about empowering workers with intelligent systems, using machines to support and elevate human decision-making and creativity rather than replace it. Benefits of Human-Machine Collaboration The synergy between humans and machines in Industry 5.0 offers numerous benefits. It enhances problem-solving capabilities by combining human intuition with machine precision and data processing power. This partnership can lead to more innovative solutions and a more flexible production environment. Moreover, it increases operational efficiency as machines handle repetitive tasks, allowing human workers to focus on more strategic roles that require creativity and complex decision-making. Examples of Successful Augmentation Real-world examples of successful augmentation in manufacturing often involve collaborative robots, known as cobots, working alongside human workers on production lines. These cobots are designed to assist with precision tasks, reducing the physical strain on workers and lowering the risk of human error. […]

‘Tech bro’ culture stifling startup sector

You might have heard the term ‘tech bro’ – a shorthand for the hypermasculine culture synonymous with the startup world. But while it’s often associated with Silicon Valley, that same culture is alive and well in New Zealand’s innovation scene too, say researchers Professor Anne de Bruin and Dr Janine Swail. Entrepreneurial ecosystems: the networks, organisations, and funding systems that support startup ventures, might seem open to all. But they’re far from gender neutral, the researchers say. “The strong association of masculine traits with entrepreneurship persists, hindering gender equity,” says de Bruin. In a new paper, de Bruin and Swail examine how gender dynamics shape startup ecosystems, and how feminist theories can be used to make them more inclusive and equitable. “If you think about Auckland’s startup sector, it’s still pretty ‘tech bro’,” says Swail. “We need to rethink what it means to be inclusive in entrepreneurship.” She says this starts with challenging the norms that shape entrepreneurial culture – norms that can make women and non-binary people feel unwelcome. “Imagine you’re a female deep-tech entrepreneur looking for a lab or an accelerator programme,” says Swail. “You walk into a space that feels overwhelmingly masculine; in-jokes, blokey language, a boys club. It can be difficult to feel like you belong, let alone thrive.” One of the biggest barriers? Unacknowledged gender bias baked into the structures and language of entrepreneurship. De Bruin points to New Zealand’s finance ecosystem, where most venture capitalists are men. “The way people communicate and operate in that world is often coded in a very masculine way. Language matters, and when we start to unpack it, we see how women and others are often excluded, even unintentionally.” If New Zealand wants to develop a genuinely diverse startup sector, we need to question who it’s built for, and who’s […]

The Skills Shortage Smokescreen

Stop searching for unicorns. Build a workplace worth joining and staying at. “We just can’t find the right people.” It’s the go-to excuse for operational issues, stalled growth and missed deadlines. But let’s call it what it is: a smokescreen. The so-called “skills shortage” is a convenient distraction from a harder truth. For many businesses, they don’t have a people problem, it’s a management problem. David Altana is head of growth and partnership at Smartspace.ai and co-host and founder of The Better SMB Podcast. When we dig beneath the surface, the reality is clearer than we’d like to admit. If your business can’t attract or retain good people, it’s probably not the labour market letting you down. It’s likely something internal: your culture, your systems, or your leadership. You Get What You Build For According to MBIE[1], 40% of roles in Tamaki Makaurau are classed as low-skilled, so let’s contrast a couple of businesses in the same region, competing to attract the same workers. One constantly complains about a lack of skilled staff. The other quietly gets on with hiring, training and growing its team. The difference isn’t luck. It’s leadership. Rob Bull is Director and principal consultant at Plexus Consultant and co-founder and host of The Better SMB Podcast. The successful business has designed itself to be a place people want to stay. It invests in onboarding, creates meaningful development pathways, and builds an environment where team members feel valued. Managers know their people. They communicate. They coach. They share the “why” behind the work. These companies don’t have a secret recruitment strategy, they simply understand retention starts with trust, which is built through day-to-day leadership, not policies or perks. To get an idea of what this looks like in practice, it’s worth reading the Jones & Sandford Joinery […]

Is New Zealand’s Health and Safety Reform Enough to Prevent Workplace Harm?

By EMA Manager of Employment Relations and Safety, Paul Jarvie Planned amendments to New Zealand’s Health and Safety at Work Act represent a shift towards reducing compliance burdens and offering businesses clearer guidelines. However, while these changes may streamline processes and alleviate some administrative stress, they fall short in addressing the deep-rooted issues that contribute to New Zealand’s unacceptably high rates of workplace harm. On the week of March 31, Minister for Workplace Relations and Safety, Brooke van Velden, announced the following proposed changes: Reducing general H&S requirements on small businesses Small, low-risk businesses will only need to provide basic facilities and manage critical risks in their health and safety practice. Notifiable incident requirements will be restricted to significant workplace events such as serious injury, illness, death and incidents (including those on the Schedule 2 ACC list). Over-zealous and over-compliant health and safety practice can be reported to a hotline. Freeing up landowners from liability in third-party recreational activities Landowners or managers who allow public access to land for recreational activities will not be liable for injuries. Health and safety responsibilities will fall on the organisation running those activities. Directors to focus on governance and oversight, not day-to-day management of health and safety risks A clear distinction will be made between health and safety governance and operational management. There will be a reduction in overcompliance of health and safety policies and duplication of plans. Greater use of Approved Codes of Practice Compliance with an Approved Code of Practice (ACOP) will become the same as compliance with the Health and Safety At Work Act in many cases. The definition of what ‘reasonably practicable’ means in specific industries will become clearer. Industry organisations will be allowed to initiate work on ACOPs, with final approval reserved by the Minister. The EMA has […]

Why banking competition matters for New Zealand manufacturers

-Mark Devlin, Managing Director, Impact PR New Zealand’s manufacturing sector has long faced challenges in securing financial services that are both efficient and cost-effective. The dominance of a few major banks has resulted in high fees, outdated systems and a lack of tailored solutions for businesses looking to scale. However, recent regulatory changes by the Reserve Bank of New Zealand (RBNZ) may mark the beginning of a new era – one where increased banking competition and AI-driven financial services could significantly benefit manufacturers. The RBNZ’s decision to allow greater access to New Zealand’s Exchange Settlement Account System (ESAS) is a critical step forward. ESAS is the backbone of the country’s financial transaction system, enabling real-time settlements between banks. Previously, only major banks had direct access, forcing smaller financial players to go through them as intermediaries. This restriction has stifled competition and innovation in the banking sector for years. Now, with non-bank financial institutions permitted to participate directly, manufacturers may soon see more competitive financing options, faster payment processing, and AI-driven banking solutions tailored to their needs. Fintech innovation: A game changer for manufacturers The impact of these reforms extends beyond just banking competition. Fintech companies like Emerge are poised to introduce AI-driven financial tools that could streamline business operations for manufacturers. Emerge co-founder Jovan Pavlicevic says that traditional banking services have failed to keep pace with the needs of modern businesses. “It’s staggering that in 2025, opening a business bank account in New Zealand can still take months. “Many of our customers report waiting three to four months just to get an account set up. Meanwhile, international fintech solutions are providing instant onboarding, real-time fraud prevention, and AI-driven financial insights,” he says. Emerge is working towards embedding artificial intelligence at the core of its banking platform, offering manufacturers real-time financial […]

Manufacturing fuels the present – SouthMACH 2025 is on soon

From NZ Manufacturer magazine, April 2025 -Doug Green, Publisher Fisher and Paykel Healthcare, Gallagher Industries, Buckley Systems, Rocket Lab, Rakon, Skellerup Holdings, Particle Systems, Scott Technology…are just a few examples of successful companies who have found markets for their ‘home grown’ products and services. And they keep moving ahead in challenging times. www.smartmanufacturingtoday.com They are members of the Creative Class – to which so many of us belong – who help drive the economy. They are the people who role their sleeves up and get stuck in, in their workshops or studios, to make ‘the next best thing’ and find new markets for their unique products. At present, it is not only tariffs we need to keep an eye on, Generative AI (GenAI) is set to reshape manufacturing, driving innovative integration, operational efficiency, and data insights, transforming productivity and revenue. Distribution leaders will need to adopt AI, robotics, and IoT to enhance industry-specific processes, data, and ways of working. Ian Walsh, Partner, Argon and Co is big on Lean. And others don’t just talk Industry 4.0, they also talk Industry 5.0 These are all required for the efficiency of manufacturing. And of course, there is the urgent need to raise the levels of Productivity. This cant just be a never-ending conversation piece – we need to do something about it! Manufacturers will have to be prepared for the continued rise in competition from lower-cost production countries in Asia, including Vietnam, Thailand and China, along with more technologically advanced nations in Europe. The world and its markets are changing and our manufacturers need to adapt and move forward. Research the TIN Network, or the EMA, HERA, the Hutt Valley Chamber of Commerce, the Southland Business Chamber, Make NZ or the Northland Chamber of Commerce. Join, find out what is going on […]

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