Business News

Have you optimised your asset care strategy?

-Ian Walsh, Partner, Argon & Co NZ It’s great to see the recent government announcements allowing additional tax deduction for new assets, which will encourage business to invest in plants and equipment to help drive productivity. These are all a step in the right direction for making New Zealand’s manufacturing sector more competitive on a global stage. With that said, any investment should be reviewed in terms of the cost and benefit, and the overall business case for making it. When I worked in Japan the approach taken was to drive efficiency and productivity until you had exhausted the potential of your existing assets. The aim was to get the absolute maximum possible out of all the equipment and space available, and only then to invest in extra capacity. This led to a relentless focus on efficiency and debottlenecking to get the most reliable, most productive assets. I remember a conversation I had with a production manager at one of these Japanese plants. He explained to me how he disliked new equipment, as “the first day was the worst day”, and it got better after that. He preferred older equipment because “we know everything about it and how to run it highly efficiently”. This is interesting to compare with more ‘Western’ approaches where we assume that new equipment is at its best on its first day and then we depreciate it, because it’s deteriorating and will only perform worse from then! The difference is that the better performing factories don’t only invest in new capital when they need capacity (or to meet an innovation need); they invest in the total asset. This includes how it is commissioned, optimising it for its role, how it is run, how it’s maintained, care for its individual parts, how people are trained to operate […]

SouthMACH 2025 hailed as most successful event to date

From June 2025 issue of NZ Manufacturer magazine www.nzmanufacturer.co.nz SouthMACH 2025 has concluded with resounding success, marking the most impactful event since XPO acquired the brand in 2015. This year’s exhibition saw a record number of exhibitors and an impressive 22% increase in visitor attendance, highlighting the burgeoning strength of New Zealand’s manufacturing, engineering and technology sectors. The organisers extend their sincere gratitude to all exhibitors and visitors whose participation was instrumental in making SouthMACH such a dynamic and valuable experience. This year’s success would not have been possible without the invaluable support of SouthMACH’s esteemed partners and programme activators. A heartfelt thank you is extended to Catherine Lye from Advancing Manufacturing Aotearoa, Jane Finlayson from EMA, Dieter Adam from MAKE│NZ, John Hamilton from Business Canterbury, the University of Canterbury, Business South and Gina McMaster from IRHACE (HVAC&R South). Their continued collaboration is vital to the success of this event and the wider industry. Event highlights included Dawn Aerospace’s packed seminar, huge interest in the HamiltonJet HT1000, the launch of IRHACE’s HVAC&R South, and the inaugural Minister for Manufacturing Awards 2025, celebrating manufacturing excellence from apprentices to business leaders. Jack Heslin, sales and event manager for SouthMACH, commented on the event’s success, stating, “The success of SouthMACH 2025 is more than just numbers – it’s a clear signal that New Zealand’s manufacturing, engineering and technology sectors are gaining traction. A strong turnout from industry professionals, innovators and future talent reflects a sector that’s not only growing but also evolving.” He added, “I’m incredibly grateful to our partners, exhibitors and every single visitor who made SouthMACH 2025 such a vibrant and valuable event. Your support drives the future of manufacturing in Aotearoa.” Jack also expressed pride in the atmosphere of the event, remarking, “Seeing the Wolfbrook arena buzzing with energy, innovation […]

Christchurch manufacturing trade fair to create opportunities

NZ Manufacturer, a Media Partner for SouthMACH 2025, extends best wishes to exhibitors at the show, commencing today in Christchurch. In challenging economic times we look for the best equipment and services to keep our companies ahead of the game; or at least, breaking even. There is no one simple answer to the market forces of today; the best we can do is be prepared to seize the opportunity when it arises, using the technology essential for success. Mixing with peers, discussing these opportunities and sharing secrets of success are also what trade fairs are about. The challenges your company may be facing are not unique, lots of companies are currently facing them. Creating a mutual support society is part of the battle…the other is runs on the board. It is in-board, in workshops, in brain-storming sessions on the floor. Reach out to us at www.nzmanufacturer.co.nz or email publisher@xtra.co.nz if your company has a story from SouthMACH 2025 you would like to share. Your observations on the event itself or where you see manufacturing’s future are subjects we are interested in hearing about. Best Wishes for a rewarding two days to your company. D J Green, Publisher, NZ Manufacturer magazine 027 625 6166

Investing for growth

The Budget’s Investment Boost is a tax incentive for businesses to invest in productive assets such as machinery, tools and equipment. This means business can deduct 20 per cent of a new asset’s value from that year’s taxable income, on top of normal depreciation. Because the cashflow from investment improves, more investment opportunities become financially viable and therefore more take place. Business investment can raise the productivity of workers, lifts incomes and drive long-term economic growth. However, businesses, following this path, need some predictability. That a reasonable investment will bring about a return. That their equipment purchases will help their businesses grow. I take it that by increasing the stock of capital in New Zealand, Investment Boost is expected to lift GDP by 1 per cent per year and wages by 1.5 per cent per year over the next twenty years, with half these gains in the next five years. Investment Boost makes New Zealand a more attractive place to invest. It gives businesses facing global uncertainty a reason to keep investing in themselves and in the future of New Zealand. It seems that large-scale businesses with established markets can continue to build their markets. There is also Invest New Zealand to encourage investment in infrastructure. This would be a welcome change from investment in property …let’s keep making and growing things!

Is your value network world class?

Over the last 40 years I have seen significant change in how manufacturing businesses compete. We have moved through the quality revolution which brought new expectations around quality and cost, to the lean revolution and associated methodologies delivering better service, value and reduced costs. Businesses then shifted their focusses onto supply chain optimisation, bringing end-to-end thinking. Their approaches moved from comparing their business models with their competitors’, to comparing their supply chains. Top performing supply chains became enabled by ERPs, and are now enabled by value networks, no longer in point-to-point structures but integrated webs of suppliers and partners delivering products and services seamlessly through a multitude of channels. Of course, the rapidly increasing deployment of AI further fuels optimisation and connectedness in these supply chains. At the root of this change in manufacturing are constantly moving market-led goalposts for how businesses better deliver what the end customer wants, when they want it, at the lowest cost possible. Understanding this value equation and then aligning their service delivery model to meet and exceed this expectation better than competition is what separates the wheat from the chaff, and industry leaders are doing this at the most competitive cost to maximise their margins. Very few, if any, businesses can do all of this by themselves. Generally, larger businesses with more scale, buying power, and connections have more capability than SMEs. However, interconnected SMEs can create highly efficient clusters which can compete with anyone and be highly agile and scalable. As we know NZ has a high proportion of SMEs and this presents both an opportunity and a risk. The opportunity is that we can create high-value clusters and that can be highly agile, integrated and capable of delivering high-value products and services through multiple channels to customers around the world. We certainly […]

World-class technology and outstanding culture at Architectural Glass Products

Architectural Glass Products (AGP) is a cutting-edge glass manufacturing business based in Hautapu, near Cambridge. Established five years ago, AGP was created to help provide the APL window manufacturer network with a total window solution. It was born from the belief that the local window and glass industry was being underserved, particularly in terms of service and quality. In response, David Bunting, Mitch Plaw, Craig Vincent and Brent Martin joined forces to create a world-class, fully digitalised, and highly automated double-glazing operation. The result is a custom-built, state-of-the-art facility stretching 417 metres long and 108 metres wide, home to some of the most advanced glass processing equipment in the Southern Hemisphere. The Employers and Manufacturers Association’s Nicholas Russell sat down with David to discuss the challenges and successes of launching a greenfield manufacturing operation in New Zealand, the pivotal role of digital transformation, and the importance of investing in people and culture from day one. Why was AGP started?? We felt the glass and window industry in New Zealand was underserved – quality was lacking, and service wasn’t up to par. Our customers, being APL Window Manufacturers, were feeling the pain and we realised the only way to truly improve the supply chain experience was to control it ourselves. That meant starting from scratch and building a manufacturing business that could deliver exceptional products with equally exceptional service. AGP is known for its massive and innovative facility. Can you tell us about the design thinking behind it? We designed the building around the manufacturing process, not the other way around. That gave us complete freedom to optimise product flow and efficiency. The building is 417 metres long (you could park five Boeing 777s inside with room to spare) and 108 metres wide, which helped us futureproof our operations. Aesthetically, it looks […]

At the coalface of technology adoption in manufacturing

By Jane Finlayson, Head of Advanced Manufacturing, EMA As the backbone of New Zealand’s economy our manufacturing sector contributes approximately 10% to GDP and employs more than over 240,000 people. Yet, despite its significance, the sector’s productivity has been stagnating, with labour productivity growing at a mere 0.92% annually over the past decade, well below the national average of 1.17%. This stagnation is not due to a lack of effort or ambition. Instead, it reflects a critical gap: the sector’s slow and fragmented adoption of technology. While many larger firms are beginning to modernise their operations, many small and medium-sized enterprises (SMEs) still rely on outdated systems, manual processes, and fragmented workflows. This digital inertia is limiting their global competitiveness and resilience. At the Employers and Manufacturers Association (EMA), we see firsthand how these challenges play out. Through our series ‘ASB Manufacturers Workshop: The Impact of Industry 4.0 on Your Business’, manufacturers consistently share a mix of enthusiasm and uncertainty about the path forward. While many are eager to innovate, they often feel overwhelmed by the scope of change and unclear about where to start. One of the most urgent barriers is the widening digital skills gap. In PwC’s 27th Annual CEO Survey, released last year, 83% of local business leaders report they have a skills shortage within their organisation and 76% specify a lack of technical capabilities as a barrier to transformation. This disconnect is deeply concerning, especially as technologies such as artificial intelligence (AI), collaborative robotics (cobots), the Internet of Things (IoT), and data analytics have moved from being future ambitions to current necessities. Feedback from manufacturers who have attended the workshops confirms this. There is growing demand for reskilling workers not only in technical areas, such as integrating Enterprise Resource Planning (ERP) with design tools, managing Supervisory […]

Reflections from Australian Manufacturing Week, looking forward to SouthMACH 2025

Adam Sharnan, CEO LMAC Group APAC Australian Manufacturing Week is an annual exhibition for the manufacturing industry, this year held in Melbourne between 6-9th May. Over the four days of the exhibition, the manufacturing industry comes together to share emerging technologies and services, share learnings and ideas and connect with partners across the industry. With this year’s event taking place within days of the Federal election and the Labour Party’s return to power, the focus of the event was on lifting productivity of Australia’s manufacturing sector and, in turn, its contribution to lifting national GDP. Not unlike, New Zealand’s manufacturing sector, Australian businesses are facing significant challenges. Louise McGrath, Head of Industry Development and Policy at the Australian Industry Group highlighted slowing investment, a restrictive workplace relations system, an uncompetitive tax system, a complex regulatory environment, ongoing skilled labour shortages, and uncertainty over energy affordability and reliability (gas prices having risen by 49% in the last 5 years, contributing to an increase of 31% across all manufacturing inputs) as being the key headwinds facing Australian Manufacturers. These issues are compounded by volatile international conditions and national security challenges, severely constraining the capacity and confidence to invest in business R&D, which is critical for innovation and productivity enhancement. In response to these challenges, industry groups used the Australian Manufacturing Week exhibition to advocate for an industry-wide approach to lifting productivity and viability of the manufacturing industry focused on Digitisation (acceleration of productivity through the adoption of Industry 4.0 technology), Diversification (in to new and growing markets such as defence and hydrogen production) and Decarbonisation (to reduce reliance on high-cost energy inputs). Prior to their election, the Albanese government outlined a federal industry support package focus around the National Reconstruction Fund (allocating $1 billion of its $15 billion budget to novel and […]

Looking forward to SouthMACH 2025

-Adam Sharman, CEO LMAC,APAC As we look ahead to SouthMach 2025, it is hard to avoid the national and global context in which this year’s event is set. Global volatility and uncertainty, combined with a slow domestic economy are providing significant headwinds for New Zealand’s manufacturing industry. With the country’s industry coming together in Christchurch, we are provided with an opportunity to learn from each other, share ideas and collaborate for the benefit of the industry and country as a whole. Having recently attended the Australian Manufacturing Week exhibition in Melbourne and hearing the themes of digitisation, diversification and decarbonisation as priorities for Australia’s manufacturers, we will be paying close attention to see if these themes are replicated in the attendees, speakers and visitors to SouthMach. With the shift in the support landscape occurring in the last 6 months e.g. the disbanding of Callaghan Innovation and, with it, the Industry 4.0 Demonstration Network, at LMAC we are proud to be playing an active role in the continuing awareness and capability development of the industry. With this goal front and centre, we are pleased to be collaborating with the EMA, ASB and AspectPT to bring the Smart Manufacturers Workshop to SouthMach on both days. I will be presenting, as part of the seminar series on ‘Getting Started with Digital Transformation’, providing a practical guide to the first steps of a digital transformation in manufacturing and how this can be achieved in cost-effective way. The new addition of the Minister for Manufacturing Awards is a fantastic initiative and we congratulate all the nominees and finalists who have been recognised so far across all categories. The announcing of the award winners at SouthMach is sure to be a highlight as we celebrate the amazing people and organisations working across our industry. LMAC have […]

Own It: Leadership is a Personal Responsibility, Not a Title

In the picture: David Altana is head of Growth & Partnerships at Smartspace.ai & Co-Founder & Host of The Better SMB Podcast. You can’t change your business without changing how you lead. In the picture: Rob Bull, Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better Business SMB Podcast We’ve made the case. New Zealand’s productivity crisis is real, and it won’t be solved by waiting on government policy, new funding mechanisms, or the perfect hire. Now we come to the heart of the matter. If we want better-performing businesses, change needs to happen to avoid the status quo and repeat the conversations of the past 30 years. If you’re the owner, GM or leader of a manufacturing business, the next leap isn’t strategic. It’s personal. The next frontier is you. The Mirror Test Think back to last week. Were you the calm in the chaos, or part of it? Were your conversations clear, or rushed? Did your team get direction, or distraction? Did you put aside any time to improve your leadership skills or knowledge? This might have been as simple as being curious and watching a couple of YouTube videos. Learn what is happening in leading businesses, it doesn’t take too long to find a couple of case studies and pick up a few pointers, then think about how this can be applied in your business. Leadership isn’t just visible in the big decisions. It’s in the energy you bring to the day-to-day. And your team mirrors it back, whether you realise it or not. Many of us rose through the ranks by being the fixer, the hard worker, the one who showed up when others didn’t. But that mindset, the hustle, the constant firefighting, the 14-hour days, doesn’t scale. It […]

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