Analysis

2026 off to a strong start for manufacturers

From February issue of NZ Manufacturer magazine By Hon Chris Penk, Minister for Small Business and Manufacturing As I kick off my first manufacturing column of 2026, I want to pass on my best wishes to manufacturers across the country as you return from a well earned summer break. I know many of you will already be back into the swing of things, but I hope the warmer weather is still bringing some enjoyment outside of busy working hours. I am genuinely delighted to see large parts of our manufacturing sector entering the new year with real momentum, supported by the strongest activity levels recorded since 2021. The latest BNZ BusinessNZ Performance of Manufacturing Index shows December 2025 activity rising 4.4 points from the previous month to 56.1. This is a very encouraging signal. New Zealand’s PMI has now shown expansion for six consecutive months and in December it outperformed manufacturing activity in the United States, China, Japan, the United Kingdom and Australia. For an economy of our size, that is a result worthy of recognition. Businesses also reported improved confidence, stronger export and forward orders, and benefits flowing through from increased infrastructure activity. This strong start echoes many of the themes that defined 2025. Manufacturers faced sustained cost pressures throughout the year, yet continued to adapt, innovate and deliver solid export performance. Food and beverage producers, advanced manufacturers and precision engineering firms all showed resilience in the face of challenging conditions. While 2025 was about regaining stability, early indicators suggest 2026 has the potential to deliver stronger forward momentum. Across the wider economy, several trends are beginning to move in a positive direction. GDP rose 1.1 percent in the September 2025 quarter, supported by a 2.2 percent increase in manufacturing and reinforcing how important the sector is to New […]

XPO Exhibitions to launch new trade fair

From February issue of NZ Manufacturer magazine XPO Exhibitions is partnering with Hannover Fairs Australia to launch Logistics Automation New Zealand, powered by CeMAT. This will be held from 10-11 November at the Auckland Showgrounds. The trade fair will bring together world-leading logistics, automation, robotics, intralogistics, warehousing, and supply chain management solutions under one roof. A new era for logistics innovation in New Zealand XPO’s Managing Director Brent Spillane says that with the rapid growth of high-tech logistics and automation, the time is right to give the sector its own dedicated platform. “We are seeing a transformational technology expansion and growth of products delivering Robotics, Automation, Intralogistics, Warehousing, Supply Chain Management and Materials Handling. This cutting-edge technology is changing rapidly, yet it’s becoming more accessible and affordable for industry to bolt-on products and enjoy instant gains in productivity.” CeMAT is a world-renowned leader of exhibitions in this space, with deep relationships across the biggest brands whose R&D is redefining logistics automation across the globe. As Mike Nissen Commercial Director of Hannover Fairs Australia explains “This Joint Venture partnership, introduces new international brands into New Zealand. Brands that loyally participate across CeMAT exhibitions in Germany, North America, Australia and Asia Pacific. “That international participation creates buzz and more value for domestic exhibiting brands – something we are evidencing in other markets we are entering.” XPO have traditionally served the Materials Handling & Logistics NZ sector most notably alongside Foodtech Packtech, and while that industry (food manufacturing) have been early adopters, XPO’s Managing Director Brent Spillane says the time has come to broaden the scope to all industries where automation can play a pivotal role in streamlining processes, driving efficiencies, and improving health and safety practices. He adds, “Logistics Automation New Zealand, powered by CeMAT brings together a far wider attendance of […]

New Zealand Productivity Organisation wants to hear from you

www.nzproductivityorganisation.co.nz www.nzmanufacturer.co.nz/nzproductivityorganisation The New Zealand Productivity Organisation (NZPO) invites all businesses throughout the country to share their views on Productivity and how they are finding current business conditions. Your company may be doing well or not quite reaching the mark you are aiming for. The economy in 2026 seems to be picking up and the better than expected PMI figures are welcome and a sign of better things around the corner. For each company it will be different, the level of Productivity. Share with us how the tools and methods you are using, the technology and expert advice, showing the way to a better future and just how you are planning ahead. Your story can appear jn the NZ Manufacturer magazine or on the media platform. Please visit NZPO at the above address.

The Learning Wave Free 90-minute taster: Accelerate team cohesion and performance in times of change

What happens when frontline teams are truly connected to each other and the business? You see fewer handovers going wrong, safer decisions on the floor, better problem-solving, issues owned and closed out properly, and people who actually speak up when something’s not right. This complimentary 90-minute taster gives manufacturing leaders a practical look at how that connection is built. Not through posters, slogans, or another toolbox talk, but through deliberate capability building where the work actually happens. In this session, we unpack what “connection” really means in an operational environment. You’ll see how trust, communication, confidence, and shared ownership show up in everyday behaviours that directly impact safety, quality, downtime, and productivity. We’ll share real examples of how frontline teams move from just turning up and completing tasks to thinking, contributing, and taking responsibility for outcomes. This is not theory and it’s not leadership jargon. It’s grounded in real manufacturing sites, real people, and real constraints like shift patterns, production pressure, and literacy challenges. If you’re an operational leader grappling with engagement, ownership, or change fatigue on the floor, this session will give you practical insight into what actually works, why it works, and how learning becomes the engine for performance, not a distraction from it. What you’ll experience in 90 Minutes: Across the 90 minutes, you’ll experience practical frameworks we use to accelerate team performance. You’ll explore a simple roadmap to identify where your team is at today and what it takes to move them forward, uncover how individual strengths build trust on the floor, and learn a clear, practical model for strengthening trust, accountability, and psychological safety. No cost. No fluff. Just insight that translates to performance. Click here to secure your spot: https://thelearningwave.com/free-taster-session-connecting-together-24th-feb-2026/ DATE: Tuesday 24th February, 2pm – 4pm VENUE: Level 3, 9 Hargreaves Street, Freeman’s […]

Manufacturing starts year by shifting up a gear

Hon Chris Penk New data showing New Zealand manufacturing is experiencing its highest level of activity since December 2021 signals a strong start to the year, Small Business and Manufacturing Minister Chris Penk says. The latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI) shows the seasonally adjusted PMI for December has risen by 4.4 points compared to November, bringing it to 56.1. “This is an incredibly positive signal, as a PMI reading above 50.0 indicates the manufacturing industry is generally expanding. The data suggests New Zealand manufacturing growth is outperforming major economies including the United States, China, Japan, the United Kingdom, and Australia,” Mr Penk says. “The success of manufacturing is central to the health of the New Zealand economy. The sector directly employs more than 220,000 people, contributes around eight percent of GDP and accounts for 60 percent of our exports. “We know some manufacturers felt the pinch of harder months last year. Today’s great news coupled with a 1.1 percent uptick for national GDP in the September quarter indicates a brighter future for businesses. “The Government is focused on setting the right conditions and fixing the basics so that businesses can thrive. Manufacturers are turning that certainty into growth through hard work and innovation. “The creativity and resilience of the sector, and its contribution to national prosperity deserve to be celebrated. It’s therefore my pleasure to announce the second annual Minister for Manufacturing Awards will be held at Auckland Showgrounds on 27 May. “This year’s awards will again recognise the Manufacturer of the Year, Manufacturing Leader of the Year, Apprentice of the Year and Excellence in Process Innovation. It will also introduce three new categories. “This includes a dedicated Manufacturer of the Year award for businesses with fewer than 50 Full Time Equivalent Employees (FTEs). With around 97 percent of manufacturers falling into this group, opening a new category ensures small businesses receive the recognition they deserve. “An Emerging Manufacturer Leader of the Year award is also being added to shine a spotlight on the next generation of innovators and trailblazers, alongside a Manufacturing Lifetime & Legacy Award to honour those who have […]

How CTEM, AI, and access control redefine OT security in 2026

By Carlos Buenano, Field CTO for OT, Armis As we step into 2026, AI-driven adversaries, supply chain fragility, and relentless digitisation are forcing Operational Technology (OT) security to mature into a force to be reckoned with. Here’s what 2026 looks like: AI-Powered adversaries demand autonomous defence AI is no longer an abstract threat vector; it’s an operational force multiplier that attackers are leveraging with frightening results. We’re witnessing adversaries use autonomous agents to probe networks, map exposed devices, and launch dynamic exploitation campaigns that run continuously. In 2026, those systems will act autonomously: isolating compromised segments, or enforcing multifactor re-authentication for operators under suspicious conditions. In OT, where minutes can mean millions, automation will be the only meaningful defence. CTEM becomes the operational centre of gravity A few years ago, “CTEM” was just another Gartner acronym. In 2026, it’s the organising principle for any serious OT security program. CTEM represents a shift from periodic vulnerability management to continuous, risk-based exposure assessment and management across hardware, firmware, network paths, and even supply-chain dependencies. But the key difference this year is context. We’re aligning exposures with what actually matters; the physical process, the human safety implications, and the potential operational impact. The cybersecurity landscape in 2026 is clearly set for a strong and necessary integration where vendors leverage the strengths of CTEM to directly inform actionable firewall enforcements, workflows, and reporting. This narrative is driven by the final “Mobilisation” step of the CTEM cycle, which demands that validated, confirmed high-priority exposures leads to an immediate, automated remediation. Specifically for firewalls, this means a CTEM platform will no longer just issue a general alert but will use its deep, risk-based context to trigger a Security Orchestration, Automation, and Response (SOAR) playbook that instantly pushes a micro-segmentation policy or a temporary block rule to […]

Digital transformation

From February 2026 issue, NZ Manufacturer www.nzmanufacturer.co.nz By Frank Phillips, Director, Fulcrum New Zealand Ltd Automation in manufacturing is a competitive imperative. It’s getting easier and cheaper to do, and able to be applied in situations previously unsuitable. Knowing where to start, identifying the right process to automate, detailing solid scopes and finding the right parter are challenges across the industry. That’s why we started Fulcrum, ‘The Automation Brokers’. We help Kiwi manufacturers cut through the complexity of automation projects, keep upfront costs down and reduce risk, while unlocking tangible performance gains. At its core, Fulcrum is an independent automation broker. A new way for manufacturers assess custom automation opportunities. Like other broker models we work on behalf of the buyer, ensuring clarity in what they are buying and finding the best deal and our revenue predominantly comes from the technology partners in our network. Rather than selling a specific technology or locking clients into one vendor’s solution, we assess processes, write business cases, calculate return on investment and detail scopes before putting the opportunity to market across proven partners with proven track records. We have seen many companies delay or abandon automation initiatives simply because the procurement process felt too daunting alongside the pressures of daily operations. That’s understandable when you’re expected to define scope, compare responses, and negotiate contracts on top of running a business. The real challenges NZ Manufacturers are facing Across Aotearoa, the conversation about automation often starts with machines robots, conveyors, vision systems — but it quickly evolves into something deeper: Budget constraints: Many SME manufacturers simply don’t have the capital or confidence to commit to large automation projects without a clear, validated path forward. Skills and capacity: Knowing what to automate and how to scope it requires expertise that many teams don’t have in-house. […]

The Year in Review – Business Exit Landscape

Mike Warmington, Platform 1 This year has been marked by fluctuations in the business exit landscape. The first quarter saw lots of activity and some deal flow. The middle two quarters saw business owners contemplating transitioning out, more likely to hold off as they endured a tougher sales environment putting the squeeze on their businesses. Our meeting numbers with business owners we had not previously met were significantly up on 2024, however this did not translate into as many engagements as we would normally expect from that level of activity. The market is experiencing record demand from individuals seeking business ownership or transition opportunities. Three Reserve Bank OCR cuts since August and lower interest rates made a noticeable positive difference ,along with increasingly positive business confidence survey results. We have found more business owners we spoke to during the year are only now prepared to either push the button on engagement now or indicate they will take action in early 2026. Having held off through COVID and the recent recession many owners are years behind in their exit planning or executing .In our opinion NZ faces the largest business ownership transition it has ever seen : Over 50% of New Zealand SME owners are aged 55 or older Over 40% of business owners plan to exit in the next 5 years Over 70% of business owners plan to exit in the next 10 years While exact numbers are assumptions, figures from a variety of other sources all quote essentially the same statistics.This demographic reality means thousands of businesses will change hands in the next decade creating both challenges and opportunities. Here’s what I’m seeing in the market: Management Buy-Ins are gaining awareness and traction – external talented entrepreneurial people transitioning in over time. Employee Ownership Models are emerging to keep businesses […]

Reflecting on 2025: Circularity, Sustainability and Transformation for Steel Manufacturing

Troy Coyle, CEO, HERA As 2025 draws to a close, it’s clear this has been a year of transformation and momentum for Aotearoa New Zealand’s steel manufacturing industry and for HERA. The national conversation around sustainability and circular design has matured significantly, with steel once again proving itself to be the rockstar of the circular economy. One of the biggest milestones for our sector was undoubtedly the announcement of the Electric Arc Furnace (EAF) at New Zealand Steel. This long-anticipated investment represents a major step forward for domestic steelmaking, enabling the production of lower-carbon steel from locally recycled scrap. It’s a tangible example of how industry can decarbonise while strengthening regional manufacturing resilience. The EAF signals a new era where circularity, innovation, and sustainability sit at the core of our national manufacturing. At HERA, we’ve seen that growing interest in low-carbon and circular design first-hand. Our newly released update to “How to Specify Low Carbon Steel” guide, has rapidly become our most downloaded publication, reflecting the appetite among engineers, designers, and specifiers to make informed material choices that reduce embodied carbon. This surge in demand shows that Aotearoa New Zealand’s construction and manufacturing sectors are ready to move from ambition to action. Circularity goes beyond just lowering emissions. It’s about designing systems that keep materials in use for as long as possible and few materials perform better than steel in this regard. That’s why one of HERA’s proudest achievements in 2025 was launching our Low-Carbon Circular Design Guidance. This guidance provides a practical framework for designers and manufacturers to apply circular economy principles in real projects, helping to close the loop between design, fabrication, and reuse. It showed that >50% reductions in carbon emissions were readily achievable through clever design and material selection. This work has been further strengthened by our successful application for […]

2026, moving forward together: Competenz deepens support for learners and employers

By Toni Christie: Competenz General Manager – Employer and Learner Experience With apprentices and employers across the country navigating an evolving sector, Competenz focused on stability, support and momentum — strengthening learner pathways and employer capability ahead of the 2026 shift to Industry Skills Boards. More than 7,000 apprentices and trainees are developing their careers through Competenz-supported programmes across New Zealand – everywhere from engineering workshops to plastics manufacturing lines, heating and ventilation rooms, forestry operations and fabrication floors. And in 2025, that collective momentum has only grown. Even as the vocational education system continued to evolve, our focus remained clear: equip learners and employers with the support and confidence they need to make real progress. A major driver of that progress has been the continued strengthening of our Learner Support Framework. The needs across our network have become more varied, and this year the framework supported apprentices everywhere from engineering workshops and plastics plants to fire protection crews and forestry teams. By early 2025, more than 1,000 learners were joining our fortnightly study groups – a sign not just of demand, but of trust and belonging. Support for priority learners has continued to deepen. Whether someone needs help with literacy, numeracy, drawing, or navigating neurodiversity, we’ve ensured there’s a pathway that meets them where they are. Accessibility has remained a priority too, with 300 Chromebooks circulating nationally — many in the hands of learners who would otherwise struggle to engage online. Wellbeing has been another steady thread through 2025. Our partnership with Vitae continued to provide vital mental-health support. Employers have also played a pivotal role in setting apprentices up for success, and in 2025 our nationwide Train-the-Trainer workshops helped build that capability even further. The series focused on practical, real-world coaching skills — exploring how effective on-the-job guidance […]

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