Developments

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

AI is peeling back the layers of ‘low-value’ work

Kenny Ching, Senior Lecturer, Business School, University of Auckland, Waipapa Taumata Rau As generative artificial intelligence (AI) advances at breakneck speed, it is upending assumptions about which jobs are “safe” from automation. Disruption now extends well beyond manual or routine work into white-collar roles once considered untouchable. Tools such as ChatGPT, Claude and Midjourney can produce policy briefs, analytical reports, software code, design assets and marketing copy in seconds. Even in specialised domains, systems such as PolicyPulse can generate structured briefs and thematic syntheses – tasks that once required teams of experts. If AI can so easily replicate large swaths of professional output, how much of the economy rests on work that creates the appearance of value rather than tangible impact? And could New Zealand – anchored in sectors rooted in physical work, human judgement and essential services – be structurally better placed to thrive? AI’s exposure effect A 2023 Goldman Sachs report estimated generative AI could automate work equivalent to 300 million full-time jobs globally. The highest exposure is in administrative, legal and other information-heavy sectors. In 2024, the International Monetary Fund warned that economies reliant on high-skilled services – such as education, law and finance – face both job losses and rising inequality. This echoes author David Graeber’s concept of “bullshit jobs” – roles that add little genuine value. Between 2000 and 2018, most net job growth came from low productivity service sectors such as marketing, consulting and corporate administration. These are precisely the kinds of tasks AI can now perform in seconds. The OECD has noted routine information processing jobs face the greatest risk. AI is not only replacing roles – it is revealing how insubstantial many of them were. Some argue finance illustrates this reality starkly: intended to allocate capital efficiently, the sector has expanded beyond its productive purpose. Businessman Adair Turner famously called much of […]

Kiwi exporters can plan and adapt now we have some tariff certainty

By EMA Head of Membership & Export Simon Devoy New Zealand exporters were dealt a tough blow at the start of August as the United States confirmed an unexpected increase in tariffs on our goods, from a widely predicted 10% to 15%. It appeared the New Zealand government and our trade negotiators had been working on the assumption that the rate would be held at 10%, but that understanding evaporated with a decision made directly by President Donald Trump. The shift reflects Washington’s new trade-first, numbers-driven approach, which leaves little room for nuance or negotiation. In this worldview, a trade surplus equals punishment, and despite New Zealand’s relatively modest NZ$500 million surplus with the US, we found ourselves in the higher tariff bracket while competitors such as Australia and Chile remained at 10% thanks to deficits in recent months. Minister for Trade and Investment Todd McClay, accompanied by New Zealand’s top trade negotiator Vangelis Vitalis, is in Washington to press the case for a reversal. They are there to register concern, seek an explanation for the extra 5%, highlight the strain this places on New Zealand–US relations, and explore a path back to a lower rate. However, the message from the US side has been blunt: the Trump administration believes America has been “ripped off” in past trade arrangements and is determined to redress what it sees as imbalances. For New Zealand, the reality is we have limited leverage. One example of an avenue we could go down is strategic procurement, such as directing some of our planned defence upgrades towards US manufacturers to help offset the surplus. While not a quick fix, such moves could be part of a wider diplomatic and economic strategy. Despite the blow, the latest announcement at least brings certainty after months of speculation and […]

More tools in the toolbox for manufacturing

By Chris Penk, Minister for Small Business and Manufacturing Being the Minister responsible for advocating for New Zealand’s magnificent manufacturers comes with the benefit of being welcomed into factories around the country for tours and meetings. From racing car seats and top-grade pharmaceuticals to steel, bread, and plastic containers, there’s a wealth of products made right here in our backyard beyond what the average Kiwi could even imagine. Time and again, when visiting these businesses, I hear two consistent messages: they need skilled workers to grow, and they need fewer obstacles when selling their world-class products internationally. That’s why I’m proud to share two recent wins that directly respond to those calls and aim to give the manufacturing sector a real boost, helping it grow and build confidence—something very welcome amid the tough global and economic climate. First, we’re tackling one of the most persistent challenges facing the sector: skills shortages. Welders, fabricators, machinists, panel beaters – these are the roles that keep factories running and businesses growing. Unfortunately, in too many regions, there simply aren’t enough people to fill them. With thanks to my colleague, Immigration Minister Erica Stanford, I sincerely hope this pressure is about to ease. Starting in August, ten additional manufacturing and trades roles will be added to the Green List’s Work to Residence pathway. Eligible migrants working in these roles will be able to apply for residency after just two years of experience with an accredited New Zealand employer. This practical change will help fast-track the talent manufacturers need to keep moving. Whether it’s a vehicle painter in the Far North or a pressure welder in the deep south, these roles are crucial to daily operations, and the Government appreciates that bringing in the right people is crucial in providing the stability businesses need to […]

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