Analysis

What 2025 taught us about sustainability and resilience

By Barbara Nebel, CEO, thinkstep-anz In 2025 we saw something important: progress on sustainability continued, even as regulations shifted and economic conditions became challenging. For many organisations, sustainability has become central to resilience, competitiveness and long-term planning. Rather than slowing down, they took more confident steps to manage risk and prepare for the future. Climate disclosure: fewer rules, but the same risks One of the major changes this year was the government’s plan to reduce the number of businesses that need to report their climate-related risks and opportunities. This shift removes the pressure of mandatory disclose and allows businesses to take a more pragmatic approach. It also raised a fair question: if fewer organisations need to disclose, does that mean the financial impacts of a changing climate are becoming less relevant? At thinkstep-anz, we know the answer is no. Climate disclosure has always been more than a compliance task. For manufacturers and other businesses with complex supply chains, it is a practical tool for managing risk. Regulations may shift, but the physical and transition risks of climate change remain. Extreme weather, changing markets and new policies will continue to affect operations, logistics and access to materials. That is why we integrate climate risk and scenario analysis directly into clients’ risk management frameworks. When climate insights sit within existing decision-making processes, they guide investment, planning and strategic direction. After two years of supporting organisations on their disclosure journeys, we are seeing a clear shift: clients are not just reporting; they are preparing for the future with greater clarity and confidence. Scope 3 emissions: more time, better tools Changing regulations also brought more time for some organisations to measure and report their scope 3 supply chain emissions. For many, scope 3 includes the upstream materials they purchase and the downstream use […]

The Year in Review: A Seconded View of NZ Manufacturing in 2025

-Caliber Design Working inside engineering teams throughout New Zealand gives us a practical view of how the sector is moving. This year we saw steady progress and exciting developments, even with the head winds. Companies continued to advance capital projects, refine equipment, develop new products, and pursue leading edge innovation in emerging fields. While each sector had its own pressures, the overall feel has been one of steady momentum. Manufacturers continued to deal with stretched internal resource, long project lists, the need to keep work moving without disrupting production, and uncertain economic times. Yet across our secondments and conversations, the intent to improve and invest remained consistent, and that intent shaped much of the engineering work carried out this year. Steady improvements in established industries In processing, materials handling, dairy, poultry, and food and beverage sites, we saw ongoing investment in practical upgrades. These were not large transformation programmes, but they mattered. Many involved service layout adjustments, safety improvements, reliability work, and design changes that reduce maintenance effort or improve workflow. This work is almost always carried out in operational environments, which means planning, communication, and sequencing are as important as the technical solution. The projects are varied but typically share a common goal of keeping plants running safely and efficiently while making incremental improvements that compound over time. Emerging technology continued to build momentum At the other end of the spectrum, 2025 saw significant activity in emerging technology. We set a goal to work with seven emerging technology companies this year and ended up partnering with nineteen. That growth is a strong indicator of how much innovation and technical development is happening in New Zealand. Projects spanned aerospace, clean materials, innovative transport, robotics, advanced energy systems, and specialised manufacturing. These companies move quickly, iterate rapidly, and often need targeted […]

Apex Valves: From garage to global

From humble beginnings in a Titirangi garage, Apex Valves has grown into one of New Zealand’s standout manufacturing and export success stories. Built on precision engineering and commitment to quality, the company now supplies high performance water control valves to homes and farms around the globe. The EMA’s Nicholas Russell sat down with Apex General Manager Mark Gracie to talk about the competitive edge that comes from manufacturing excellence backed by decades of innovation. Q: How did Apex Valves’ journey begin, and what triggered your move into larger-scale manufacturing? Mark Gracie: Apex was founded in 1982 by my father, Alan Gracie, in a Titirangi garage. At that time, New Zealand had almost no domestic manufacturers of valves for home hot-water systems. If you needed one, you imported it, often at high cost and with long delays. That gap in the market sparked the idea: could a Kiwi manufacturer produce a reliable, locally made alternative? From that question, Apex grew steadily. We expanded from residential hot-water valves into broader plumbing fittings, and then into agriculture when a rural-supply customer asked if we could engineer a heavy-duty trough valve that would not break under high water pressure or daily farm use. That product became our breakout success. More than 40 years later, that trough valve remains one of our biggest sellers, used on farms across New Zealand and in multiple export markets. As demand grew, we shifted into proper manufacturing facilities, but over time those sites became limiting. Our last location served us for 28 years, but we were spread across four buildings, with production split into disconnected pockets. For a company that prides itself on quality and efficiency, the layout created unnecessary complications and increasing constraints. Q: What has changed now, after the move to your new facility at Rosebank Road? […]

A year of supporting innovation, safety and export growth

By EMA Head of Membership, Export and Manufacturing Simon Devoy It’s not news that New Zealand’s economy remains heavily reliant on commodity-based exports. Yet the country is steadily carving out a reputation for high‑tech, high‑value manufacturing. While we’re known globally for milk powder, meat and timber, we are increasingly competing across advanced sectors, including aerospace, agritech, medical devices and precision engineering. The ambition is to be seen as an innovation nation, but there are significant challenges that must be addressed. Throughout 2025, the EMA’s focus in the manufacturing sector has been on two linked priorities: reducing workplace harm and helping the sector modernise and become better connected so businesses can scale and export with confidence. Despite the sector’s strengths, stubborn rates of workplace injury continue to drag on productivity and impose high costs. In response, we partnered with ACC and data specialists Flock to launch the Manufacturing Safety Dashboard, an anonymised benchmarking tool that allows manufacturers to compare reported incidents across sub‑sectors and identify where to focus safety improvements. This tool converts raw accident data into actionable insight. It highlights where injuries cluster, identifies high-risk tasks, and demonstrates which businesses are making measurable progress. This approach moves safety conversations from awareness to actionable intelligence, and anonymised peer data provides a clear pathway for improvement rather than a spotlight on failure. The sector has also shown a strong appetite for peer-led guidance and practical tools that enable measurable improvement. To address this, we partnered with ASB to run the Manufacturers’ Workshop Series exploring the impact of Industry 4.0 technology on New Zealand manufacturing. These workshops offered a practical examination of automation, data integration, and digital technologies through interactive demonstrations, including digital twin simulations. This hands‑on approach enabled manufacturers with lower levels of automation to see the potential of technology to improve efficiency, safety […]

It won’t be the new machines that win in 2026. It will be the people running them

Adam Harvey, Business Performance Partner – Manufacturing, The Learning Wave What if next year looked different? Picture this: Same pressures. Same market conditions. But instead of starting 2026 already firefighting, you’re ahead of demand. Your people anticipate issues before they hit production. Technology accelerates performance instead of slowing it down. The morning meeting is about what you’re improving, not what you’re recovering from. That’s the position some manufacturers have put themselves in this year. And let’s be honest. They didn’t get there because 2025 was easy. This has been one of the toughest planning cycles in recent memory. Margin squeeze. Labour shortages. Compliance tightening. Digital expectations rising. Budgets dissected line by line just to keep the lights on and the line moving. But while most held back waiting for “the right moment”, the bold manufacturers, big and small, doubled down on capability. Not because it was part of a grand strategy. In some cases, because the same issues kept cropping up, and the old approach wasn’t working. Not because they had spare time. Because they knew they couldn’t afford to wait. We saw it everywhere: Lion invested in teams’ problem-solving capability and OEE improved Altus backed their leaders to own and solve problems and culture and collaboration lifted – this piece of work paid for itself 3X Tegel moved safety from reactive to proactive by growing rep capability Ashburton Meats and Kraft Heinz built their leaders ahead of operational change Tasman Tanning, Essity, AFFCO, George Weston Foods, Vitaco and Inghams built performance skills. Their frontline teams now act earlier, make better decisions, solve problems faster, reduce waste, and speak up when performance is at risk Buckleys continued building capability at every level Foot Science International, Baker Boys and Argus ManuTech prepared their teams for digital transformation They didn’t just […]

Reflecting on a year of New Zealand manufacturing

From The Year in Review, NZ Manufacturer magazine, December issue. By Hon Chris Penk, Minister for Small Business and Manufacturing As 2025 draws to a close, it’s a good moment to reflect on a year of resilience and progress for New Zealand’s manufacturing sector. The year brought challenges, but there is much to celebrate, and I’m proud to represent a sector that spans so many different industries. Manufacturing is at the heart of our economy. It’s the petroleum processor in Taranaki, the wood miller in Rotorua, the food and beverage producer in Hastings, the metal fabricator in Hamilton, the chemical technician in New Plymouth, the machinery engineer in Christchurch, and the equipment assembler in Dunedin that we have to thank. The sector employs more than 220,000 people, generates roughly 8 percent of GDP, and accounts for 60 percent of our exports. Over the past year, export growth has been strong, reflecting the dedication and innovation of manufacturers across the country. One highlight for me was hosting the first Minister for Manufacturing Awards at SouthMACH in Christchurch in May, supported by Advanced Manufacturing Aotearoa. These awards celebrated leadership and creativity, with 38 entries narrowed to 16 finalists across four categories. It was a fantastic opportunity to recognise excellence and connect as an industry. More recently, I have been inspired by Kiwi manufacturers winning awards at regional, chamber, and national business events. Gallagher New Zealand Trade and Enterprise received the Supreme Award at the International Business Awards. RML Machinery in the Waikato, AROTEC Diagnostics Limited in the Hutt Valley, and United Machinists in Dunedin each earned top honours in their regions. These successes show how manufacturers are fueling regional prosperity, boosting our competitive edge, and showcasing worldclass expertise. Many parts of the sector are not standing still; they are growing and […]

Two Factories, One Economy

NZ Manufacturer, December issue. How the Same Conditions Create Winners and Loser Christmas is almost here and for many it can’t come fast enough. Another year of holding on, fighting fires and telling ourselves we just need to wait for better times to arrive. Yet look across the industry and you’ll see something striking: the same tough conditions producing completely different outcomes. One manufacturer is crawling to the finish line; another is smashing targets and celebrating wins. The break ahead isn’t just an opportunity to rest, it’s a reset. David Altena is Head of Growth & Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions The biggest variable in 2026 won’t be the economy. It’ll be the mindset you choose over the holidays. Because when you strip away the noise, this year has made one truth impossible to ignore: the same conditions are producing entirely different results. Some firms have spent 2025 wrestling the economy like an anchor, while others have treated it like a headwind to lean into… uncomfortable, but navigable. That contrast is the real story. It tells us the gap between struggling and succeeding may not be the market at all, but the mindset leaders bring to it. Rob Bull is Director of The New Zealand Lean Academy. rob@nzla.nz This is where the tale of two manufacturers begins The phrase we heard so much last year, “Survive till ’25”, was the hope we were clinging to, but it quickly morphed into “Survive 25,” reflecting how many manufacturers feel worn down by another long, slow year. Stories of closures, liquidations and persistent pressure have reinforced the sense that the economy is dictating our destiny. It is easy to get swept into that narrative. Yet, if we look closer, we find a stark contrast, two […]

Controlling Ignition Sources through ORS

Chris Beh, Think Consulting Oxygen Reduction Systems (ORS) utilise a process to lower the atmospheric oxygen levels of 21% below the ignition threshold for the items stored in an area (e.g. below 14%) – a proactive, preventative fire protection system unlike fire suppression, such as sprinklers, which are reactive (i.e. initiate only when a fire event occurs). Typically, nitrogen is generated from ambient air using on-site pressure swing adsorption (PSA) units and introduced into the area to be protected. Uses for the technology has been in high-value occupancies where the use of traditional fire suppression technologies such as fire sprinklers is challenging due to space constraints and hydraulic design (e.g. for adequate pipe work), tight or congested storage, lack of established protection design methodologies, or need to avoid water or chemical residue damage. Globally, there are more than 500 installations of these systems with applications in high-bay and freezer/cold store warehouses, datacentres and museums and libraries where valuable artifacts need protection from fire without exposure to extinguishing agents. In New Zealand, the use of this technology has mainly been in high-bay, cold store warehouses with the popularity of the system slowly becoming recognised. Firms considering installing ORS should consider the following which may influence both the acceptance (such as insurer) and the requirements imposed on facilities utilising this technology, noting this list is not exhaustive. Design Undertake a risk-based design review of the system and process including operation, maintenance and health and safety. Ensure the operating oxygen level is correctly designed for the hazard class being stored. The protected area sealed and structurally suitable for maintaining reduced oxygen levels. The enclosure that contains the reduced oxygen environment is to be constructed of non-combustible material. This area is to maintain the oxygen design concentration for twelve hours with all operations shutdown […]

Higher speeds lower productivity: what the data shows crash delays really cost Auckland

Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau Another morning, another crash on one of Auckland’s major roads. Traffic isn’t moving. Drivers sit in their cars rehearsing reasons for being late again. Radio hosts offer the usual advice: leave earlier and find an alternative route. It happens so often we barely notice anymore. But the costs add up fast, and they’re far bigger than a few delayed meetings. Auckland had 34,628 reported crashes between 2022 and 2025. The “road toll” conversation typically stops at the obvious costs: injuries, deaths, emergency response. But it misses a lot. A new analysis puts the true figure at NZ$9.23 billion over those three years (roughly 2% of Auckland’s $157 billion economy), including nearly $200 million that never enters the policy debate. Transport agencies already put dollar figures on crashes. The New Zealand Transport Authority (NZTA) uses official methodology covering the usual: medical bills, lost productivity, property damage and the statistical value of a life. One fatal crash amounts to $15.2 million. But buried in the technical reports is an additional cost category that most policy discussions ignore: network disruption. False economies Crashes on major roads hit more than just the people involved. Thousands of other drivers get caught in the delays that spread across the network. Traffic engineering consultancy Flow Transportation Specialists recently worked out these network delay costs for Auckland Transport for the first time. Using GPS travel time data and traffic counts, researchers tracked how crashes create congestion that extends far beyond the crash scene and persists long after vehicles are cleared. A multi-vehicle crash on Auckland’s motorway network generates between $1.4 million and $3.5 million in network delay costs. Even a serious crash on an arterial road can cost $26,000 to $37,000 in lost time across all affected road users. When applied across […]

2026: It’s Now or Never

From December issue, NZ Manufacturer – The Year in Review Ian Walsh, Partner, Argon & Co NZ We have finally seen the “green shoots” and those businesses still going can finally tick the survive (till) 2025 box. Confidence is on the up and activity is starting to move, what a ride! But what have we learned? Here are a few reflections from me. Traditional approaches to getting through the hard times are no longer enough. Many businesses tightened their belts, let people go, stopped all discretionary spending, travel etc. and didn’t make it. Waiting for things to get better is not a strategy. This is just giving your competitors, especially those overseas, a free pass. We can no longer rely on distance and separation for protection. NZ is easy to access and service from anywhere, if you think you are safe you may be deluding yourself. It is all about productivity. We must face into this reality, we can’t work harder or longer we already top this league, we must work differently and recognise the rest of the world is and has adapted, and so must we. There’s no avoiding it or waiting for government intervention. We have some core industries and capabilities which are world leading. Our dairy and tech sectors are world-leading, with aspirational companies. Let’s not be complacent; let’s push on and assert and grow these advantages. We have a window of opportunity. Carpe Diem. Now is the time, before the next global uncertainty. It is now or maybe never. Identify your strategic competitive advantage and actualise it? Need help? Seek it. We are brave and innovative, the pioneering spirit lives strong, we can do this. There are enough tall poppy killers out there, lets celebrate the go getters, the achievers, the adopters and the triers and […]

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