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Building a competitive future: The role of Government in NZ Manufacturing

From NZ Manufacturer, September 2025 edition By Sean Doherty Following on from my article, “New Zealand is Poor Because It Chooses To Be,” I have had numerous conversations with friends and manufacturers about the Government’s role in innovation, productivity, and manufacturing. I would like to note that I have left Government service, and the views and guidance I share below are my own. However, they are informed by over 20 years of experience working closely with manufacturers, including the last five years within Government, and the good fortune of gaining a global perspective on interventions other Governments have made to increase manufacturing productivity and longevity. Should the Government take action to help manufacturing? One could argue that the Government already has a lot on its plate, with health, education, police, and infrastructure dominating the headlines, while investing in the future prosperity of the country often seems more challenging. However, it is globally recognised that a strong manufacturing sector is a cornerstone of a dynamic, resilient, and competitive economy. It underpins employment, exports, productivity, and innovation. To put this in the New Zealand context: manufacturing directly employs about 11% of the workforce and contributes approximately 10% to GDP. In 2024, business spending on Research and Development (R&D) reached a record high. However, despite this investment, we are seeing productivity flattening, which squeezes business margins and makes it difficult for businesses to invest in growth and their people. What does the Government support today? While the Government supports numerous business programs, below are some recommendations for manufacturers. I suggest engaging with these initiatives and understanding how they might fit into your plans, so you can invest your time wisely and potentially benefit both your business and the wider industry. Advanced Manufacturing Aotearoa (AMA) This is the only direct investment from the […]

Artisan skill and technology a successful brew at Zealong Tea Estates

With 48 hectares of certified organic Camellia sinensis growing in the heart of the Waikato, Zealong Tea Estate is New Zealand’s only commercial tea estate. You can tour the estate and sculpture walk, sample a high tea at their Tea Room, have a luxurious French-inspired meal at their Camellia Restaurant prepared by a chef plucked from the Michelin-starred kitchens of Paris, or take part in a traditional tasting of their internationally awarded teas. As a visitor destination, it’s a major asset to the region and the teas have been served to the likes of China’s President Xi Jinping and Her Majesty Queen Camilla during official events, and the estate has been filmed for the BBC Earth documentary One Cup, a Thousand Stories, which highlighted the estate’s quality-based approach to producing certified organic tea. Behind the scenes, the process of manufacturing its teas blends artisan skill and technology. The EMA’s Nicholas Russell sat down with Zealong General Manager Sen Kong to find out where they have used technology to improve efficiency but also how the human touch remains irreplaceable. Zealong has invested heavily in both people and technology. Why is the human touch still so crucial in your industry? Sen Kong: Technology plays a huge role in streamlining parts of our operation, such as processing, drying and quality control, but when it comes to the actual picking of the tea, the human hand is still superior. Machines aren’t yet sophisticated enough to distinguish the top three leaves from the rest of the plant, and that matters. Those top three leaves are the most tender and flavour rich. A machine might take too much, or damage the plant, which affects secondary growth. A trained picker knows exactly how to pluck, preserving both the leaf quality and the health of the bush. In addition, tea […]

Cutting red tape to encourage productivity

A visit to Glenbrook Steel Mill By Chris Penk, Minister for Small Business and Manufacturing Among the many things I’ve come to appreciate in this job is just how challenging it can be to run a small business in New Zealand’s regulatory maze – no matter the industry. In the wise words of our Prime Minister, “we can have more growth, more exports, more jobs, and higher wages for every New Zealander – we just have to say yes to letting it happen.” It’s clear to me that, like so many other businesses, manufacturers want to spend more time making things and creating jobs, and far less time buried in paperwork. Too often businesses tell me unclear or outdated regulations stand in the way. For example, machine guarding rules can clash with food safety standards, or exposure limits might fail to reflect the real risks on the ground. Many manufacturers have faced the frustrating reality that rigid rules cost time, money and productivity – without always delivering better safety outcomes. That’s why this Government is pushing ahead with work to clear out the sticky red tape that gums up the works. I want to acknowledge my colleague, Workplace Relations and Safety Minister Brooke van Velden, who has spent recent months engaging with manufacturers across the country. From sawmills to commercial bakeries, businesses have been upfront with Minister van Velden, as they have been with me, about the frustration of navigating grey areas and impractical requirements that tie them in knots. One example that stands out came from a business owner who shared how identical machine guarding passed inspection by WorkSafe in Auckland yet failed in Christchurch. When the same piece of equipment is treated differently depending on who shows up on site, it’s obvious something needs to change. We’re […]

Dispatches from Europe: Manufacturing crossroads across UK, France, Germany

A guide for New Zealand’s manufacturing leaders Adam Sharman, CEO LMAC Group APAC Having recently spent time on the ground with our team in Europe, it has been interesting to reflect on the common trends and differing approaches to industry support across Europe. Whilst different countries face some of their own unique challenges, priorities, constraints and policy backstops, one thing is clear; across Europe the manufacturing playbook is being rewritten. For New Zealand manufacturing, having an eye on the commonalities and practical differences in the European markets matter as much as the headline trend words (AI, reshoring, decarbonisation). In this article, we reflect on what’s really happening on the ground across the UK, France and Germany— and what we can learn in New Zealand. The UK: fast-to-adopt, policy-energised, skills-constrained UK manufacturers are pushing hard on data, AI and automation as the primary levers for productivity — driven by government programmes (Made Smarter), trade and tax incentives, and a recent policy pivot to a long-term industrial strategy that backs advanced manufacturing and skills investment. That policy momentum is prompting many UK firms to accelerate AI/ML pilots, invest in connected-factory programmes and consider reshoring for resilience. Yet adoption is uneven: SMEs still cite awareness, skills and access to capital as the highest barriers. Leaders should therefore prioritise scalable pilots that deliver measurable OEE (overall equipment effectiveness) gains, pair technology buys with rapid upskilling, and actively use available regional funding and schemes to lower implementation risk. France: state-led modernisation and selective reindustrialisation France combines a deliberately interventionist industrial policy with long-term programmes — “Industrie du Futur” and targeted investment funds — to modernise medium-sized sites and attract strategic projects (gigafactories, batteries, critical supply chains). The French state has used subsidy schemes and coordinated “Team France” efforts to push digitalisation, decarbonisation and on-shoring where […]

Make your emissions reporting easier with spend-based emission factors

Getting started with your carbon footprint doesn’t have to be complicated. Manufacturers across New Zealand are already sitting on one of the most powerful tools for understanding their emissions: their financial data. Spend-based emission factors turn dollars spent into practical emissions estimates, providing you with a fast, accessible way to start measuring and managing your impact. They’re especially helpful for scope 3 emissions from your supply chain, which are typically the hardest to track but often make up the biggest part of your footprint. In this article, we explain what spend-based emission factors are, how you can use them in your business, and where to find the most accurate and up-to-date data for New Zealand. What are spend-based emission factors? Spend-based emission factors are a type of emissions data that connect greenhouse gas emissions with how much money you spend on goods and services. They express emissions as kilograms of carbon dioxide equivalent (CO₂-e) per dollar spent (kg CO₂-e/$). They’re calculated using environmentally-extended input-output (EEIO) models. These models look at the total emissions of a sector (like “fabricated metal products” or “office furniture”) and divide this by the total revenue of that sector. The result is an average emissions intensity per dollar. In simple terms, they give you a ballpark figure: if you know how much you spent in a certain category, you can estimate the emissions that came with it. Why use them? Spend-based emission factors are especially helpful when: →You don’t have access to physical data (like litres of fuel or kilograms of steel) →You need an emissions estimate based on financial records →You’re starting your emissions reporting and want to cover as much ground as possible →You want to identify emissions hotspots in your supply chain before doing a deeper dive. They’re widely used for: →Scope 3 […]

Innovation Stalled

Why the Crown Research Shake-Up is at least a 2-Year Setback In a year where New Zealand’s productivity crisis is finally getting some airtime, the government has managed to stall one of our most important levers for change: innovation. The Crown Research Institute (CRI) reforms were supposed to turbocharge commercialisation and collaboration. Instead, we’ve ended up with a bureaucratic limbo. Restructuring science funding in theory might make sense, but not if it pulls the handbrake on actual innovation for two years while the dust settles. The timing couldn’t be worse. David Altana, Head of Growth & Partnerships at SmartSpace.ai & Co-Founder & Host of The Better SMB Podcast. david@altena.solutions While other nations are doubling down on R&D to fuel economic transformation, New Zealand is in danger of drifting further into irrelevance. We’re already ten years behind our OECD peers on technology adoption. Now, with innovation policy in flux, the few Kiwi companies ready to lead from the front are left waiting for clarity, funding and alignment. Rob Bull, Director of the New Zealand Lean Academy. rob@nzla.nz To understand why this matters, we need to be clear on the difference between innovation, R&D and technology adoption. Innovation is about exploring better ways to lift organisational performance. That a bold business model shift, or solving a customer problem in a novel way. It’s the spark that drives progress. R&D is what fuels that spark. It’s the deliberate investment of time, moneyand expertise to develop the ideas that underpin innovation. It can live inside universities, CRIs, or businesses themselves, but without it, our ideas run shallow. Technology adoption is how we bring it all to life. It’s the moment we take those R&D outcomes or global innovations and embed them into how we actually work. This is where New Zealand, historically, has […]

Company Profile: South Waikato Precision Engineering

Fiona Schroeder, General Manager How are you finding current business conditions? Business has been tough over the last 12 months, across the board, our customers have been “down” and experiencing lower demand. However, it would seem there are some green shoots which will hopefully mean that we have hit the bottom and are now looking forward to a period of gradual growth. What are the main activities of your company? South Waikato Precision Engineering is a manufacturing engineering business. We design and manufacture KNAPP spreader bars, lifting beams, man cages, skid steer attachments and excavator attachments including thumbs. We also manufacture parts for other New Zealand Manufacturers. With 11 CNCs and offline programming, we machine a wide variety of precision parts including tooling steels. We also have fabrication and welding, giving us the capability to manufacture welded parts that require machining in one place rather than having to use two separate suppliers. Our assembly team assemble manufactured parts into sub-assemblies for customers to streamline their manufacturing production. Where are future opportunities for growth, for your company? From a production manufacturing perspective, South Waikato Precision Engineering is partnering with New Zealand manufacturers to produce parts and provide sub-assemblies with the goal to reduce production costs and increase efficiencies to ensure our customers remain competitive in the global market. We believe this approach of assisting our manufacturing customers to reduce costs and use an external supplier to change fixed costs to variable costs will continue to create opportunities for growth both for South Waikato Precision Engineering and our customers. For our own products, KNAPP has the largest range of certified spreader bars and lifting beams available in New Zealand with growing demand from Crane and Hiab companies, manufacturers and warehouses that require compliant, certified lifting equipment. We also see growth in opportunities […]

Smart manufacturing and the UK government’s industrial strategy

In the following article from the UK there is some good learning to be had for NZ Manufacturers, and if they are listening, Government (MBIE particularly Small Business & Manufacturing), and other key stakeholders on the importance of a solid strategic approach to achieve higher levels of productivity using technology. The UK’s Industrial Strategy, that was released this year, is focused on Advanced Manufacturing with a significant growth target to be achieved with significant investment in the sector growing from the current business investment of £21bn to £39bn in 2035. Clearly not the sort of investment we could compete with in NZ but does demonstrate that investing in Smart Manufacturing is worthwhile for economic prosperity. Within the article are a series of logical steps that can be applied to any industry sector to prepare for and use technology to be a smarter manufacturer. The article is written by James Watson, Parter with Argon & Co, along with Rachel Noll, Manager of Data/AI at IRIS. Smart manufacturing and the UK government’s industrial strategy With a fresh 10-year blueprint for economic growth, the UK’s Industrial Strategy puts advanced manufacturing at the heart of its ambitions. James Watson and Rachel Noll at Argon & Co explore how smarter use of data, automation, and robotics can help manufacturers unlock productivity, resilience and long-term growth The UK Government’s newly launched Industrial Strategy was long in the making, but has arrived with bold ambitions. Its 10-year roadmap for economic growth has a firm bet on advanced manufacturing as one of the eight high-potential industries in the UK, along with sectors like financial services, clean energy, and life sciences. For many operating in this sector, this support couldn’t have arrived soon enough. Manufacturing has been pushed from disruption to disruption, hampered by inflation, persistent labour shortages, and […]

Construction 4.0 Technologies

Opportunities and Scalability for Aotearoa New Zealand’s Construction Industry By Dr. Troy Coyle, CEO, HERA Introduction The construction industry is undergoing a major transformation thanks to new digital technologies, a shift often called Construction 4.0. Inspired by the smart technologies that revolutionised manufacturing, these innovations are now changing how buildings and infrastructure are designed, built, and managed. This overview highlights some of the key technologies shaping this change and considers their potential for New Zealand’s construction sector. The emerging technologies research theme of HERA’s Ngākopa Construction 4.0 project, led by Prof Robert Amor from the University of Auckland, aims to identify the technologies that can support a transition to construction 4.0. Summary of key technologies in Construction 4.0 Building Information Modelling (BIM) is a way of creating detailed 3D digital models of buildings that everyone involved in a project can use. Instead of relying on flat blueprints, BIM lets architects, engineers, and builders work from the same interactive model, reducing mistakes and improving teamwork. It also helps plan costs, timelines, and even assists with managing buildings after construction. The Internet of Things (IoT) connects sensors, tools, vehicles, and even workers on a construction site, collecting real-time information about everything from weather conditions to equipment status. This data helps managers improve safety, avoid delays, and make better decisions by keeping track of what’s happening on site at all times. Augmented Reality (AR) allows project teams to view digital designs overlaid onto the real world using mobile devices or special glasses. This makes it easier to spot design problems early, estimate costs accurately, and manage quality directly on site. Knowledge-based systems use smart computer programs to analyse risks, project timelines, and safety issues, helping teams make better decisions by understanding complex data and uncertainties. Computer vision uses cameras and drones to watch construction sites, automatically spotting safety risks […]

Editorial, August NZManufacturer magazine -When will we hold an Economic Reform Roundtable?

We don’t have a Productivity Commission and we don’t have Callaghan Innovation anymore. No time to be sentimental but, who would run an Economic Reform Roundtable – like the one being held in Canberra this week, with a focus on Productivity? Because we badly need one. We have the determination of EMA, HERA, NZCTU, ECANZ, IPENZ, VANZ to look after their members, assist them to get ahead and open opportunities. The Chambers of Commerce do the same. Technology groups talk the talk for their members as well. But the negotiating aspect, the financial aspect, is needed to build on the 70% of export earnings coming in from the primary sector and ensure that manufacturing from the workshop, science and technology increase their market share on overseas markets. And, of course, it asks the question: “What came out of the Investment Conference held earlier this year in Auckland? Probably a good time to have another look on You Tube at: Sir Paul Callaghan – StrategyNZ: Mapping our Future – March 2011 As a decisionmaker, a leader in your company, you are welcome to share with readers your path to success and what the future looks like. publisher@xtra.co.nz

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