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The cost of Deindustrialisation: How New Zealand’s manufacturing decline threatens our economic future

NZ Manufacturer magazine wants more business owners and decisionmakers to speak up and positively make suggestions on issues affecting the future of manufacturing. Dont be silent when your ideas can make a difference. Speak up for your country. Doug Green, Publisher By Sean Doherty, Manufacturing Commentator | NZ Industry Trends Manufacturing is not just another sector in New Zealand; it is one of the core systems that keeps regional communities alive and anchors our standard of living. When factories close in Whakatāne, or the outer suburbs of Christchurch, we do not seamlessly “move up the value chain.” We lose well‑paid careers, technical capability, and the dense network of firms and supply chains that make an economy resilient. The signs of deindustrialisation are already all around us Long‑standing manufacturing plants shutting, production shifting offshore, and investment decisions quietly goes against New Zealand. The immediate impact is job loss, but the deeper damage is structural. Manufacturing has long provided thousands of solid, mid‑skill, mid‑wage jobs for people who are prepared to learn a trade, run complex processes, and take responsibility for quality and output. As these roles disappear, the labour market splits into a small group of high‑income professionals and a growing pool of low‑paid service jobs in areas like tourism and hospitality. That mix locks in stagnant wages, weakens social mobility, and drives up fiscal pressure as more households rely on government support to close the income gap. For regions, the consequences are even more personal. A single plant in a provincial town can support hundreds of families directly and many more through suppliers—maintenance firms, transport operators, engineering workshops, automation integrators, local business services. When production ceases, these networks unravel. Young people see fewer reasons to stay, schools lose roll numbers, and community struggle. Once this cycle takes hold, it is […]

McCain employees walking towards production facility

Turning manufacturing around

The announcement by McCains of their closure in Hastings and that of Heinz Wattie’s to close three sites around the country has come with a (wait for it) vacuum of comment, suggestions and concern. Neither does it affirm the benefits of having fifty cent cans of vegetables coming into NZ for sale in supermarkets. It shows greed is alive and kicking! Especially if growers need to readapt and align with the dairy and sheep sectors to survive. Where are the industry leaders, Government officials and ministers leading the charge to do something about the situation, so we do not continue to see the reduction in manufacturing throughout this and other sectors? Have any ideas been expressed and shared as to how this situation can be reversed because, after all, we do want home grown produce and continue to have pride in our land-based industries, don’t we? Is the lack of outrage down to the lack of belief in the ability to come up with concrete ideas to turn the sector around. This must at least be the bottom line to bring about change. Here are a couple you can feed back to me on. Or you might have an idea you want to share: Idea No.1 Is it possible for all affected growers to pull together their produce and start a grower’s co-op, on the North Island and on the South Island, to take on the supermarkets, get a decent return for their efforts and continue to have the populous support “home grown”? Idea No 2 The nation of 5m deposits $1 a week, for a month, into a bank account, NZ Future Manufacturing (for example). After the month there will be $20m in the account. A site is selected, central North Island (Palmerston North, for example) where a manufacturing […]

Ecostore: Building world-class sustainable manufacturing from Auckland

Offering environmentally responsible and eco-friendly alternatives to conventional products has been the goal of Ecostore since its foundation in 1993. That purpose is backed by a sophisticated manufacturing operation in Auckland, where ecostore develops, manufactures and packs its home cleaning, personal care and baby products at its own Toitū Net Carbon Zero-certified factory in Pakuranga. A B Corp-certified business with products sold across New Zealand and into multiple export markets, Ecostore’s growth story is one of continuous improvement. The EMA’s Nicholas Russell spoke to Ecostore Chief Operating Officer Tony Acland about how the company has used smart design, practical technology and better factory flows to lift performance, capability and scale. How does manufacturing support ecostore’s growth and export strategy? Tony Acland: Manufacturing is at the heart of Ecostore’s business model. By owning our production and packing, the company can move faster on product innovation, control quality, and continuously improve how products are made. As demand has grown over the past decade, the focus has been on redesigning layouts, upgrading equipment and improving material flows so the factory can scale efficiently while maintaining high environmental and quality standards. That mindset has driven major changes in how the site operates, from relocating and re-positioning key production equipment into brighter, cleaner, better-ventilated areas, through to re-engineering how raw materials and packaging move through the facility. The result is a manufacturing environment that better supports higher volumes, smoother workflows and more consistent output. What practical investments have made the biggest difference on the factory floor? Tony Acland: One standout example has been investing in equipment that improves both efficiency and accessibility. The installation of vacuum bag lifters means powder batches can now be manufactured without manual handling of large volumes, making production faster, safer and more inclusive for a wider range of workers. Space and logistics were another key focus. As […]

Exporting in 2026: Sustainability and proof

Exporters are not being asked for their sustainability commitments. They are being asked to prove them. Across global markets, sustainability is becoming a condition of doing business. Not because it is the “right thing to do” (although it is), but because regulators, retailers and procurement teams are building sustainability into the rules of trade. Eloise Joiner, Sustainability Lead at New Zealand Trade and Enterprise (NZTE), shared with thinkstep-anz team at our recent team days what NZTE is hearing directly from exporters and what this means for New Zealand businesses trying to grow internationally. Her talk was a timely reminder that while the sustainability conversation may feel noisy, complex and sometimes uncertain at home, the international direction is clear. Here are our takeaways Regulation is moving fast and it is not just climate Eloise highlighted that around 70% of New Zealand exports go to countries with mandatory climate disclosures either proposed or enforced. But climate is only one part of the picture. Exporters are also navigating requirements related to modern slavery, packaging, end-of-life responsibility and product design. For many companies, the challenge is not a single regulation. It is the growing number of overlapping requirements across multiple markets. The result is a system that is often fragmented and hard to interpret, particularly for businesses exporting to more than one region. \ The EU is setting the pace and everyone else is watching Eloise made it clear that Europe is setting the direction on sustainability requirements, and exporters will increasingly need to respond. Read more about the Europe’s sustainability demands on NZTE’s website. The challenge is not just the volume of regulation. It is the complexity, fragmentation and ambiguity, especially for companies selling into multiple markets. New Zealand’s domestic policy signals may not match what exporters face internationally. Despite any changes New […]

Why our car dependence is now a strategic liability

Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau The war in Iran and the effective closure of the Strait of Hormuz have sent oil prices past US$100 a barrel – and Kiwis flocking to fill up. Petrol just hit NZ$3 a litre and some stations have reported running dry. In response to about 20% of the world’s oil supply being shut off in just a few days, the International Energy Agency announced its largest-ever coordinated reserve release of 400 million barrels. But analysts warn oil could reach US$150 a barrel if the strait stays closed. For a country that imports every drop of its petrol, diesel and jet fuel, this is not only a problem, it’s a hard reminder New Zealand has failed to mitigate such strategic vulnerability. Since Marsden Point stopped refining oil in 2022, New Zealand has imported all its refined fuel, mostly from South Korea and Singapore. Those refineries rely on crude oil shipped through the waters now blocked by Iranian drones. The latest official fuel stocks update suggests roughly 52 days of total cover, with less than 33 days of petrol in the country. This buffer was only designed to smooth over short disruptions, not substitute for a prolonged supply crisis. Motorists are already starting to hoard supplies, with petrol stations in Auckland already selling out of fuel cans. Some drivers may well be regretting not having bought an electric vehicle earlier. Failure to electrify New Zealand generates more than 85% of its electricity from renewable sources – rising to a record 96.4% in the last quarter of 2025. It has one of the cleanest and most oil-independent electricity systems in the world. Yet transport, which consumes nearly 40% of all energy in the country, remains almost entirely chained to imported oil. Electricity provides just 0.5% of domestic transport energy. It didn’t have to be […]

Workplace literacy: The hidden lever of performance

Adam Harvey, Business Performance Partner – Manufacturing, The Learning Wave We all know the story: New Zealand productivity lags behind much of the OECD. For years, it’s been in reports, debated at conferences and written in board packs. You feel it when the same issues resurface, rework creeps back in, downtime conversations repeat, and new kit doesn’t deliver what it promised. Travelling the country and visiting Kiwi manufacturers, one thing is clear: there’s ambition everywhere. New systems being introduced, digital dashboards going up, automation projects underway, and capital being committed. There’s no shortage of intent. That’s progress. It’s the right direction. But there’s an uncomfortable truth that needs to be addressed. New systems, processes and tools don’t create better performance on their own. If the people closest to the work aren’t confident reacting to change, interpreting data, using the tools, and actively improving waste, quality and efficiency, productivity and performance rarely changes. Not because your team doesn’t care. But because the capability required to unlock that next performance level hasn’t kept pace. The real constraint holding us back In many cases, that capability gap traces back to something we don’t talk nearly enough about in manufacturing: low workplace literacy and numeracy. Not school maths. Not essay writing. Workplace skills. Reading a job sheet and understanding what it needs. Identifying problems and asking the right questions. Speaking up and asking questions when they aren’t sure. Across Kiwi manufacturing, the data is confronting. At least half of all frontline workers don’t have the skills to thrive in increasingly complex plants. When those skills aren’t strong, performance leaks. The silence when you ask for questions? The issues noticed but not raised? The instruction acknowledged but not followed? All likely literacy challenges. And as new tools, systems and processes roll in, those gaps […]

In God we trust: All others bring data

David Altena is Head of Growth & Partnerships at SmartSpace.ai & Co-Founder & Host of The Better SMB Podcast. david@altena.solutions Rob Bull is Director of the New Zealand Lean Academy. rob@nzla.nz Edwards Deming’s line has been quoted so often it risks becoming wallpaper. But for New Zealand manufacturers facing reducing margins, skills shortages and relentless competition, it’s not a slogan; it must be a standard. You know the feeling. Every day’s busy, the team hustle, the shop floor hums, yet profitability wobbles, lead times slip and projects that looked promising last quarter are still stuck in first gear. The gap isn’t effort. It’s information. Not a shortage of activity, but a shortage of clarity. Do you know what “good”, let alone “great”, looks like? Information-led businesses win Let’s be blunt: gut feel gets you started, but data helps you sustain quality, hit targets and scale. Information led businesses don’t drown in dashboards – they know which information actually matters, they measure, share with the team and act on it. Manufacturers need a clear view of flow, quality, throughput, commercial health and capability. Most businesses already measure far more than they need – but far less of what matters. These aren’t “nice-to-haves.” They’re the instrumentation panel telling you if your workshop is flying straight or drifting off course. Without this, you risk over-investing in the wrong places, repeating the same mistakes and confusing activity for progress. Insights, not just indicators But watch out, simply measuring more is not learning more. Too many leaders implement software, install sensors and create dashboards using yesterday’s processes and call it transformation. What’s missing are the insights – turning the raw numbers into a real narrative. Trends vs. snapshots: Is OEE improving, or did we just have a “good week”? Causes vs. symptoms: […]

Uncertainty and opportunity for Kiwi exporters

By EMA Head of Membership and Export, Simon Devoy With the global trading environment shifting rapidly, uncertainty is the new normal for Kiwi exporters. The latest developments around tariffs from the Trump Administration show just how quickly the rules can change, and how vulnerable small, open trading economies like New Zealand can be when the rules-based global system begins to fray. In late February, the United States Supreme Court ruled 6–3 that President Trump had exceeded his authority by imposing broad “emergency” global tariffs under the International Emergency Economic Powers Act (IEEPA). The Court reaffirmed that under the US Constitution, only Congress has the authority to set tariffs. At first glance, that might have seemed like good news for exporters around the world. The ruling removed the legal basis for the 15% “reciprocal tariff” that had been applied to most imports, including New Zealand goods. But within hours, the Trump Administration moved quickly to reinstate tariffs under a different legal mechanism: Section 122 of the US Trade Act of 1974. This allows the President to impose temporary tariffs of up to 15% for 150 days. Initially announced at 10%, the tariff was soon raised to 15% and took effect on 24 February. In practical terms, that means many New Zealand exports to the United States continue to face a 15% tariff, essentially restoring the same rate exporters had already been dealing with. Some agricultural products are expected to remain exempt under earlier announcements. But exporters still need to confirm classifications carefully at the HS-code level. Meanwhile, other tariffs remain untouched by the Supreme Court decision, including Section 232 tariffs on products such as steel, aluminium and copper, as well as potential investigations into sectors like pharmaceuticals. Given the highest court in the US just ruled the gathering of these […]

Busy Isn’t Productive: The Hidden Cost of Broken Flow

A practical reset for factories stuck in firefighting, batching and workarounds. By Neil Robinson, a Senior Business Consultant with Argon & Co (Auckland) specialising in productivity improvement, Lean systems and capability building. A Six Sigma Black Belt and experienced facilitator, he helps manufacturing teams make flow visible, stabilise performance and embed practical continuous improvement routines from frontline to leadership. Busy isn’t productive. Most manufacturing leaders have seen it up close: people are flat out, machines are running, forklifts are moving — and yet output, delivery and margin are unacceptable. The hidden cost isn’t laziness or lack of commitment. It’s broken flow. If you’ve ever launched a “transformation initiative” that looked perfect in the boardroom but lost momentum on the shop floor, you’re in good company. Programmes rarely stall because people don’t care. They stall because the one thing everyone needs to understand — how work actually flows — was never made visible in a way that sticks. Flow is the backbone of every World Class operation. When product moves smoothly from one step to the next, everything improves: quality, productivity, lead time, DIFOT, cost and morale. But when flow is interrupted, busyness increases, work piles up, frustration grows and improvement stalls — even with good people trying hard. Why flow matters — and why it’s hard to teach Every operation wants work to move smoothly from start to finish. When flow is strong, performance becomes predictable. When flow breaks down, the system pays — in delays, rework, expediting, excess WIP, stressed teams and missed delivery. The enemies of flow often look “normal” in day-to-day work: batching, long changeovers, unclear priorities, waiting for information or materials, bottlenecks, and the classic workaround — “just put it anywhere for now.” These interruptions are easy to tolerate individually, but together they quietly drain […]

Find a Business Partner – DIY or Not ?

Mike Warmington, Director, Platform1 New Zealanders often like to try their hand at projects especially when it comes to DIY jobs around the house. We pride ourselves on having a can-do attitude. This can transcend itself into business when owners are looking at exit planning strategies. It may sound easy to elevate a key staff member or an external person into your business as part of a succession plan – but is it really? As business owners, we understand we need to pay an Accountant for their advice and the compliance work they do in regard to tax and our financial statements. We also pay a Lawyer for legal advice. It is seen as mandatory to engage external parties for this type of advice so why not do the same when making other decisions regarding often your most valuable asset? How often do we pay for other advice and structuring from experts about succession planning? To find a business partner to buy you out over time can be a very effective option and improve your wealth and lifestyle. There are many things to consider as part of a business owner transition plan. If you are looking to find a business partner as part of a strategy to exit your business over time here are some of the points you should consider: Finding the best person usually comes from a competitive process. Are you getting a choice? How do you ascertain the risk profile of the person? Are they entrepreneurial and will they stick to the plan? Weeding out “ tyre-kickers” early is required and it is a skill that needs to be learnt from practice. If a colleague is recommending the business partner to you do they have experience in talent identification? Does the person have the money to […]

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