Analysis

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 The dominance of a few major banks has resulted in high fees, outdated systems and a lack of tailored solutions for businesses looking to scale.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 […]

‘Tech bro’ culture stifling startup sector

Dr Janine Swail. 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 […]

Why the Right to Repair will benefit New Zealand manufacturers

From NZ Manufacturer magazine March 2025 www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu *Jim Goddin, Head of Circular Economy at thinkstep-anz. The recent first reading of the Consumer Guarantees (Right to Repair) Amendment Bill in New Zealand’s Parliament marks a pivotal moment for businesses, consumers, and the environment. If enacted, this legislation will require manufacturers to provide spare parts, repair manuals, and software access to consumers and independent repairers. While some manufacturers may be concerned about potential costs or intellectual property risks, the right to repair presents significant benefits for New Zealand’s manufacturing sector. It can drive business innovation, reduce waste, enhance customer loyalty, and build a more resilient, circular economy. Understanding the Right to Repair The right to repair ensures that consumers and independent repairers have access to the tools, parts, and information necessary to maintain and fix products. It challenges restrictive policies that limit repairs to authorised service providers, often increasing costs and contributing to e-waste. Key elements of the Right to Repair include: Access to spare parts and manuals – Manufacturers should provide genuine replacement parts and repair guides. Repair-friendly design – Products should be designed to allow easy repairs without specialised or proprietary tools. Protection against restrictive policies – Consumers should not be locked out of repairs due to software restrictions or warranty clauses. The legislation is particularly relevant to industries such as electronics, appliances, vehicles, and agricultural machinery, where manufacturers traditionally limit repair options, increasing costs for businesses and consumers alike. The Right to Repair and its Impact on manufacturers Some manufacturers may worry that making spare parts and repair information available will reduce profits from new product sales or increase compliance costs. However, international experience […]

Energy efficiency: a bright way to power up your savings!

From NZ Manufacturer magazine March 2025 www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu -Insa Errey, Advisor to NZ Manufacturer, Genesis, Senior Manager Future Fuels. Energy efficiency is increasingly becoming a key factor to drive cost reductions, especially in the manufacturing sector. As manufacturers seek ways to remain competitive and reduce operational expenses, energy costs should become the primary target for cost-cutting measures. By improving how energy is used, it can reduce bills, boost productivity, and contribute to long-term sustainability. The Link Between Energy Efficiency and Costs In manufacturing energy cost can account for up to 20% of total operational expenses, these costs can vary depending on the industry and the energy intensity of the product. Energy costs, in many cases, are second only to labour in terms of operational spending. Leading to improving energy efficiency delivering substantial financial benefits. Energy efficiency involves the reduction of energy consumption without compromising output or quality. The savings generated from these measures can translate directly into reduced operational costs and higher profit margins. Significant savings can be realised with low to no cost process optimisation. While other opportunities may involve initial investment which can seem significant, the return on investment (ROI) is often reached quickly through reduced energy costs. Global insights from the International Energy Agency (IEA) show that in some industries, energy efficiency projects can pay for themselves in as little as 2-3 years. Beyond immediate savings, energy efficiency improvements can provide long-term financial benefits. Energy efficiency can help mitigate the impact of rising energy prices, making it easier for manufacturers to predict future costs and avoid unexpected increases in energy expenses. Even small reductions in energy costs can make a big difference to the bottom line. Another consideration is that energy efficiency can also provide […]

Smart Industry Readiness Index: Key Themes and Findings

From March issue NZ Manufacturer magazine. www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Adam Sharman, CEO LMAC Group APAC The Smart Industry Readiness Index (SIRI) has emerged as a critical tool for manufacturing organisations seeking to navigate their digital transformation journeys. At LMAC Group we have supported over 200 business across New Zealand and the UK to define, start and optimise their Industry 4.0 journeys through our digital transformation approach using the Smart Industry Readiness Index. Reflecting on this experience, in this article we will discuss the key themes and insights into the current state of Industry 4.0 adoption and their implications for manufacturing business across the industry As New Zealand manufacturers seek to optimise and accelerate their productivity through Industry 4.0, they face several distinctive challenges: Scale and Investment Capacity: With most New Zealand manufacturers being SMEs, many face challenges in securing sufficient capital for comprehensive digital transformation initiatives. Talent Acquisition: The limited local talent pool for specialised digital skills creates a significant barrier, with many organisations struggling to attract and retain experts in areas like industrial IoT, data science, and automation engineering. Connectivity Infrastructure: Regional manufacturers sometimes contend with limited high-speed internet access, constraining their ability to implement cloud-based solutions or real-time monitoring systems. Integration with Legacy Systems: Many established New Zealand manufacturers operate with older equipment and systems that present integration challenges for newer digital technologies. New Zealand manufacturers exhibit a characteristically pragmatic approach to technology implementation. Rather than pursuing cutting-edge technologies for their own sake, Kiwi businesses tend to prioritise practical solutions with clear returns on investment. This approach serves many companies well but can sometimes limit exploration of more transformative technologies that might deliver longer-term competitive advantages. Most Commonly Identified Priority Dimensions for New Zealand Manufacturers SIRI assessments […]

A tale of two sectors

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Ian Walsh, Partner, Argon & Co NZ I was reminded last week of the level of complexity and difficulty to solve our productivity crisis. It’s clear to me that we have a multi-speed economy, with certain sectors having made great progress over the last 10 years with others still on the starting blocks. The dairy sector has been developing and implementing best practices, training leaders, building capability and employing appropriate technology for over 25 years. Fonterra has lead the charge and most other dairy companies have followed this lead, by developing and employing solutions to improve productivity, reduce waste, improve yield and reduce costs. It has led to fantastic outcomes, with the most recent payout reflecting both the great work on the farm and the much improved off-the-farm processing capability. It would be untenable to consider competing globally with the capability the sector had in 1999. The payout would have been significantly lower and dare I say many processors would have been seriously impacted. This is, of course, not to say the job is finished, because it isn’t, but the direction of travel for the sector looks good. In contrast, the global construction sector has seen little-to-no productivity growth over the last 50 years, and in New Zealand it’s no different. There is a unified view that productivity needs to improve, however little or no concerted action has been taken to adopt best practices. The tales of late delivery, cost overruns and underperformance on completion are now so common that these outcomes are expected. Indeed 94% of construction projects don’t achieve cost, time or quality objectives. When a job is costed at $2 billion, it’s no […]

Manufacturing a key player in our export story

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Chris Penk, Minister for Small Business and Manufacturing Starting 2025 by taking on the role of Minister for Small Business and Manufacturing has been an exciting time. As readers of NZ Manufacturer will be well aware, these areas lie at the heart of the New Zealand economic engine. Manufacturing is a key player in our export story and the vast majority of NZ businesses are “small” (with 97% having fewer than 20 FTE employees). So let me start by saying how grateful I am to everyone in the sector who is producing the goods, quite literally(!), to ensure New Zealand’s economic growth. My initial approach is to listen carefully to what manufacturers see as their challenges and opportunities. This will provide a countrywide perspective, on top of what I hear from constituent businesses within Kaipara ki Mahurangi. The area that I represent in northwest and the rural north of Auckland includes some significant industrial zones, so I appreciate manufacturing is a key enabler of employment and social cohesion in local communities. My “starter for 10” would be making sure that manufacturing businesses can navigate bureaucratic roadblocks and – wherever possible – removing those roadblocks. I have observed that the compliance burden is too high and doesn’t reflect a risk-based approach. Greater balance is needed, which is why smart regulation (as opposed to removing all regulation) is our watchword as a government. Trade is another key pillar to aid growth, and it’s our ambition to double the value of New Zealand exports within a decade. We’re getting on with signing new trade agreements across the globe – knowing the quality of our great […]

NZ–Canada initiative to drive food export growth

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz By Mark Devlin, Managing Director, Impact PR New Zealand’s food manufacturing sector has long been the pride of our nation—an industry built on innovation, quality and a deep-rooted commitment to sustainability. Yet, in an increasingly competitive global market, even our best ideas need a boost to flourish on the world stage. The recent announcement of a Government-backed export initiative with Canada is a significant step in that direction. A new era for Kiwi food exports The latest initiative, which saw the recent signing of a Memorandum of Understanding between the Canadian Food Innovation Network (CFIN) and its local counterpart New Zealand Food Innovation Network (NZFIN), promises to accelerate the commercialisation of Kiwi food innovations. It is designed to give our food and beverage firms access to emerging technologies, comprehensive market intelligence and robust research and development support. With Canada’s 40 million consumers within reach, this collaborative programme could open a new frontier for New Zealand’s agricultural exports—a sector that accounts for nearly half of all goods and services sold offshore. The move is part of a broader strategy to double the value of New Zealand food exports by 2030. Recent forecasts predict that our food and fibre exports will reach a staggering $56.9 billion by mid-2025. For an industry that already invests over half a billion dollars annually in agri-food research, such ambitious targets underline the urgency of transforming research outputs into commercially viable products. Building an international innovation ecosystem At the heart of this initiative lies the innovative ‘Catalyst Model’ developed by NZFIN. This model is engineered to create a domestic international ecosystem, seamlessly integrating food innovation facilities across Auckland, Waikato, Otago, Palmerston North and Canterbury […]

No More Excuses: Manufacturers Need to Lead NZ Productivity Shift

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz By David Altena and Rob Bull Podcast: https://www.linkedin.com/company/the-better-smb/ David Altena is Head of Growth & Partnerships | SmartSpace.ai Co-Founder | The Better SMB Podcast Rob Bull is Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better SMB Podcast New Zealand’s productivity crisis has dragged on for decades, waiting hasn’t worked. Our productivity lags other OECD nations, with clear consequences: stagnant wages, reduced competitiveness, declining living standards, weak business investment, an over-reliance on commodities and low-value industries. We work longer and harder, not smarter. The Treasury has called it our biggest economic challenge, yet we continue to treat it as an abstract problem rather than an urgent, business-led priority. The Numbers Don’t Lie To make any meaningful progress and catch our peers, businesses en masse must focus actively on performance improvement. Even with that level of action and momentum, it would still take three to five years before we begin seeing national productivity improvements. To achieve this, we’re not talking about “some manufacturing businesses” making incremental improvements. We need to redefine New Zealand’s economic landscape… According to Statistics NZ (2023) there are ~ 23,000 NZ manufacturing businesses. For meaningful change we need 15,000 manufacturers, or two-thirds, to make this their top priority for the next five years. Why Government Targets Won’t be Enough Our government has set ambitious targets spanning: Doubling exports Improving R&D Strengthening skills Reducing crime rates Improved healthcare Focusing on sustainability But these span every sector and shift with the political cycle. While government policy provides a foundation, it’s not enough. Business leaders must take charge. Without individual businesses improving their performance, national productivity will remain stagnant. What if prioritising productivity delivered more impact than today’s scattergun approach? Without productivity gains, even billions in […]

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