Developments

World class is not optional

From May issue, NZ Manufacturer magazine Ian Walsh, Partner, Argon & Co While there are industries — car assembly, for example — where the economic case for local production can be debated, food is different. Producing food is something we should be doing. More than that, it is something we must do well. The story of Heinz — and by association Wattie’s — is one that is very near and dear to my heart. I have worked in this business on and off since the 1990s, in the UK, the US, and across ANZ. That lived experience matters, because this is not a theoretical discussion about ownership structures or ideology. It is a practical lesson in how value is built over decades — and how it can be lost just as surely. Under the leadership of Tony O’Reilly, Heinz became one of the great global food companies of the late twentieth century. Through the 1980s and early 1990s, the strategy was clear: disciplined international expansion, strong brand investment, and relentless focus on cost and productivity. The acquisition of Wattie’s in 1992 — for approximately NZ$565 million — fit this pattern perfectly: a category‑leading local brand with deep trust and export potential. Markets rewarded this approach. By the early 1990s, Heinz’s market value had grown to roughly US$10–15 billion. Scale, brand power, and operating discipline reinforced one another. But acquisition‑led growth is never free. Each successive wave of M&A expanded the footprint and lifted shareholder expectations. With every deal came aging assets, capital‑intensive manufacturing plants, and increasing complexity. To sustain growth and fund further acquisitions, the base business had to extract more productivity and cut costs. Over time, this narrowed the margin for error. Many manufacturing sites were already under‑capitalised when acquired. They required sustained reinvestment simply to remain competitive. Too […]

Free 60-minute webinar

$144K recovered. 18% more output. When literacy improves, performance follows. As an operational or HR leader, you see the issues every day. Downtime that shouldn’t have happened. Instructions that were acknowledged but not followed. People waiting around for instructions, not sure of what’s next. And a strange silence during safety briefings or shift handovers. Most leaders call it “poor engagement”. Some call it “poor attitude”. But what if it’s not the real problem? The real constraint holding us back In Kiwi operational environments, at least 50% of frontline teams lack the literacy and numeracy skills to thrive in increasingly complex workplaces. Think manufacturing, construction, and logistics, and that figure is closer to 70%. This isn’t an HR issue; it’s a literacy issue showing up as lost performance. And it’s quietly draining your bottom line. What you’ll experience in 60 minutes: The redacted reality: We’ll apply a “CIA-style” redaction tool to a real-life induction document to show you exactly what a worker with an average reading age actually sees. What looks “clear” to you isn’t always readable to them. Connecting the “performance leaks” to the literacy gap: Connect the dots between downtime, rework, missed targets, and silence in meetings. You’ll see literacy gaps where you once saw attitude and engagement issues. How we start with the numbers, not textbooks: Learn how we build capability around your targets, your operational challenges, and your numbers, and strengthen literacy and numeracy to make it stick. What happens when it clicks: We’ll share real Kiwi case studies where teams built the literacy to read and respond to the work, they delivered an 18% lift in output, and recovered $144K in waste. The Operational Performance Diagnostic: You’ll leave with a high-level Operational Performance Diagnostic to pinpoint exactly where your plant is leaking performance Stop guessing. […]

(I wonder) What is in the Budget for manufacturers?

Another Budget, another election year. Lots of hand wringing? I hope not. The business community needs government to invest more and assist to make life better for all of us. Through these challenging times, we are not hearing from Ministers, expressing concerns, or sharing ideas to address the difficulties businesses are facing. When companies are challenged in moving forward, there needs to be options that can assist. Take for example Wattie’s and McCains, where are the Minister for Regional Development and the Minister for Small Business and Manufacturing? If they are working on a plan to improve the lot of these two companies, they are sure not letting business and communities know what is going on. If there are meetings going on, share the outcomes. Regions like Hawkes Bay are renowned for the quality of their products. Growers all over the country too. Rural business is holding the country together, financially, with their ginormous returns for high quality hort and agricultural export products. It is not the Queen Street farmer driving these efforts! In the Budget, we need to see investment into Manufacturing for companies to go forward, with confidence, and continue to grow. Manufacturing companies need the ability to invest in technology to do better and to enhance our market share. Improved technology can result in improved productivity, which can result in an improved bottom line. We cannot have a budget like the one in 2025, when to balance the books, the Finance Minister needed the money that was to be used for equal pay! I get it that in an election year members of Parliament may not want to comment or share ideas with the population because their words may well be remembered, affecting their chances of re-election. However, they work for us; with business, to bring about […]

NZ‑India free trade deal: were early fears about immigration and investment justified?

by Rahul Sen, Senior Lecturer, Department of Economics and Finance, Auckland University of Technology Depending on which side of the argument you listen to, the recently signed New Zealand-India free trade agreement represents either a huge economic opportunity for New Zealand or a risk to its economic sovereignty. In an election year, we can expect political positioning over something as significant as this deal, given the broader context. India is a huge market of 1.4 billion people, migration is a burning issue globally and economic growth has been elusive during a period of inflation, war and fuel price hikes. Broadly, the agreement reduces barriers to trade in goods, services, capital and skilled labour. It’s not surprising exporters are excited about the opportunities. India is projected to grow at 6.5% this year and the next – faster than New Zealand’s other existing trade partners. The Ministry of Foreign Affairs and Trade’s national interest analysis estimates trade, output and real wages will increase due to the market access for New Zealand goods in the deal. The economic benefits projected by 2050 may even be conservative estimates, given higher-than-modelled gains were seen once the New Zealand-China free trade agreement was in place. But the India deal goes beyond trade in goods and encompasses services and investment liberalisation, which was where the most political opposition was faced. First, it was feared New Zealand could be penalised for not investing enough in India. Second, according to NZ First’s Shane Jones, the agreement opens a door to “unfettered immigration”, displacing local jobs. The hyperbole notwithstanding, then, what does the text of the agreement tell us about the likely economic impact of the deal on New Zealand? Can NZ be penalised for not investing enough? The major sticking point for the Labour Party – whose support for the deal was needed because government coalition partner NZ First opposed it […]

Talking point from Mayor Wendy Schollum: McCain and Wattie’s closures

When a major employer closes and another downsizes, the impact doesn’t stop at the factory gate. In Hastings it affects workers, growers, contractors, suppliers, transport operators, local businesses, and families across our region – because when steady jobs disappear, it is felt around kitchen tables, in local shops, and across the wider community. That is why the recent changes at McCain and Wattie’s matter to our community, and why Council has a role to play. Over recent weeks we’ve brought together growers and industry to understand the drivers and impacts, and successfully pushed for a national review of the issues that have resulted in these business decisions. Wattie’s is not just a factory. For many families in this district, it is part of their history. Parents and grandparents worked there. Growers built businesses around supplying it. Contractors and transport operators have relied on it. It is part of Hastings’ identity as a food-producing district. But it is also important to say this clearly: Hastings is not starting from a weak position. We have strong growers, manufacturers, exporters and businesses that continue to play a major role in our district. Hastings is a powerhouse in primary industry, manufacturing, health and technology for the region, which provide about 60 per cent of Hawke’s Bay jobs, and we must remain focused on continued growth. We have an opportunity and a responsibility to respond with urgency to these recent announcements. Since they were made, I have been working with Central Hawke’s Bay Mayor Will Foley, growers and industry, to advocate at a national level with one clear Hawke’s Bay voice. This is a regional and national issue, not just a Hastings issue. Many affected growers are in Central Hawke’s Bay. Workers come from across the region, including Napier. The consequences reach well beyond one […]

Three Ministers for Small Business and Manufacturing in Three Years

Andrew Bayly, Chris Penk and Cameron Brewer have been the ministers for Small Business and Manufacturing in the past three years. How has this happened? Manufacturing in New Zealand requires a strong focus and a minister in the position for the long haul (or three years as the political term permits). To get to know how businesses function and the support they need for success. First there was Andrew Bayly, Chris Penk has been moved up in cabinet and Cameron Brewer is a brand-new appointment. How does the manufacturing community feel about this constant change? Because if National loses the upcoming election, there will have beeen four ministers in a short period of time…but let us not get ahead of ourselves. Manufacturing – all that is made – is consequential to our way of life. It goes without saying that if NZ does not have a manufacturing sector, it does not have an economy. If businesses are concerned about how long a minister is in the position, to do the position justice, they need to make their voices heard. Ministers need time to get to know how manufacturers function – familiarity -and the assistance they require, to enhance our standard of living and celebrate innovation.

Better thinking, better results: The two-day world class productivity simulation that builds capability

By Neil Robinson, a Senior Business Consultant with Argon & Co (Auckland) specialising in productivity improvement, Lean systems and capability building. Welcome back! If you joined us for Article 1, you’ll remember how the World Class Productivity Simulation gives teams a powerful, hands-on experience of what helps — and what hinders — operational performance. Many participants leave that first session with a renewed sense of possibility. “The only sustainable competitive advantage is an organisation’s ability to learn faster than the competition.” — Peter Senge In manufacturing, it’s easy to fall into a trap: when performance dips, the organisation responds with speed — quick fixes, point solutions, and local optimisation. Sometimes that helps. Often it creates new problems elsewhere, because the symptom wasn’t necessarily the system driver. A more reliable approach is to build the capability to think well about improvement — to see what’s really happening, understand what the customer needs, consider the organisation’s direction, and make decisions that improve the whole system rather than one corner of it. That’s the purpose of the two-day World Class Productivity Simulation. Day one creates an unforgettable experience of flow, waste and performance. Day two builds something more enduring: the ability to learn as a team and apply a repeatable method for choosing improvements that stick. Even if you never attend the simulation, the principles below will strengthen your own improvement conversations. The difference between activity and improvement Many sites have no shortage of improvement activity. The real question is whether that activity is producing better system performance: more reliable output, improved quality and delivery, lower cost, safer work, and less firefighting. A simple test is to ask: What problem are we solving — and how do we know? What customer need does this improvement protect or enhance? Which part of the system […]

Making scope 3 manageable: how to use spend-based emission factors

Manufacturers need a clear view of emissions across their value chain to identify hotspots, manage risk and meet reporting requirements. The challenge is that supply chains are complex, with limited visibility beyond direct suppliers. This makes scope 3 emissions difficult to quantify. Unlike scope 1 and scope 2, they are rarely measured directly and rely on estimates. Data is often incomplete or unavailable, especially early on. Waiting for perfect data is not realistic. This is where spend-based emission factors come in. They use financial data to estimate emissions, allowing organisations to build a complete scope 3 baseline from the data they already have. Using financial data to get emissions insight Spend-based emission factors link financial data to greenhouse gas emissions. They express the average emissions associated with a dollar spent in a given category. This approach uses national economic data and emissions data to estimate the average emissions per dollar spent. In practice, it allows manufacturers to use their existing spend data to estimate scope 3 emissions. This is exactly how many organisations begin. Financial data is readily available, structured and complete. Using it as a starting point enables a rapid, economy-wide view of emissions without waiting for supplier engagement. Photo by Cooper Hofmann on Unsplash Why this approach resonates with manufacturers Manufacturers operate across complex supply chains, often with a mix of domestic and imported inputs. Understanding upstream emissions in detail is challenging, particularly early on. Spend-based emission factors address this by providing full coverage. Because they are built on national economic accounts and include import data, they capture emissions across both domestic production and international supply chains. This completeness is one of their defining strengths. Every dollar spent is linked to emissions somewhere in the value chain. They are also efficient. Organisations can apply them using […]

The most expensive decision you signed off

Why not investing still shows up on your P&L Not many of us would say it out loud at the next networking event or Friday drinks. The biggest barrier to growth in New Zealand manufacturing isn’t the banks, isn’t the government, and it isn’t Donald Trump. It’s us. David Altana is Head of Growth &Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions It’s the business owner who knows what needs to change but keeps the wallet closed. The operator who will spend sixty grand on a new ute without blinking, but won’t invest $5,000 in a consultant with the knowledge to fundamentally improve how the business runs. Yes, the environment is genuinely difficult. A 15% tariff on New Zealand exports to the US, ongoing US-China trade tension rattling our largest trading partner, and renewed inflationary pressure on input costs driven by conflict in the Middle East. Add unemployment at 5.4%, near a decade high, and it’s no surprise consumer confidence is slipping. Rob Bull is Director of the New Zealand Lean Academy. rob@nzla.nz But this environment also creates the perfect alibi for doing nothing. And doing nothing is still a decision — one with real, measurable consequences. Holding back feels sensible – But it isn’t Of course hesitation feels rational right now. When uncertainty is everywhere, restraint looks like discipline. Deferring a machine upgrade preserves cash. Pausing training protects short‑term capacity. Delaying external support feels responsible. Inside businesses, that restraint shows up in familiar ways. Capital projects slide into the next quarter. Improvement initiatives lose momentum. Capability gaps are acknowledged, then tolerated. Nothing dramatic happens — just a series of small deferrals that quietly become the status quo. But financially, this isn’t neutrality. It’s a position, and one your competitors can see. The […]

New Zealand manufacturers leaving value on the table in functional foods

As global markets shift toward science-led, high-margin nutrition, New Zealand risks missing a significant opportunity in functional foods, reflecting a sector that has been slow to move beyond its traditional commodity mindset, writes Mark Devlin, director of Impact PR and NZ Manufacturer business advisor. New Zealand is sitting on a high-value food innovation opportunity that it continues to under develop, as global food markets move away from commodity nutrition and toward targeted, function-driven products. Much of the sector still exports raw ingredients, while higher-value product development, branding and margin are captured offshore. Reports out of the US suggest that up to one-third of people may have low levels of a specific dairy-derived fatty acid should be viewed in that context – as an example of a potential opportunity for New Zealand manufacturers looking to take advantage of a broader shift in how food is understood, valued and commercialised. The compound in question, C15:0 or pentadecanoic acid, is naturally present in dairy fat and certain fish and was historically overlooked in favour of broad classifications of dietary fat. Current research is examining how individual fatty acids behave in the body, with studies linking higher circulating levels of odd-chain fatty acids to improved metabolic outcomes and lower risk of conditions such as type 2 diabetes and cardiovascular disease. At the centre of that shift is Dr Stephanie Venn-Watson, a veterinary epidemiologist who previously served with the World Health Organization and the US Navy and has spent much of her career advancing understanding of this nutrient. Her research, including long-term analysis of ageing dolphin populations, identified C15:0 as one of the strongest markers associated with healthier metabolic profiles, lower inflammation and reduced metabolic dysfunction. Those findings are directly relevant in New Zealand, where dairy consumption is shifting at the same time as rates […]

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