Developments

Digital transformation on a shoestring: Auckland’s innovative approach to manufacturing

A new insights paper from Tātaki Auckland Unlimited reveals how small manufacturers can embrace digital technologies without breaking the bank or risking disrupting their processes. Manufacturing remains a cornerstone of Tāmaki Makaurau Auckland’s economy, contributing more than $11 billion to the region’s GDP and employing approximately 85,000 people. Despite this significant economic footprint, New Zealand’s manufacturing sector faces persistent productivity challenges compared to other advanced economies. A pioneering initiative called Digital Manufacturing Light aims to change this by helping small and medium-sized enterprises (SMEs) in the manufacturing sector take their first steps toward digital transformation. This month, Tātaki Auckland Unlimited (the region’s economic development and cultural agency delivering on behalf of Auckland Council) is releasing an insights paper that introduces the Digital Manufacturing Light concept and shares findings from a successful pilot programme. The Digital Manufacturing Light pilot, which began in April 2022, was led by the University of Auckland in collaboration with Tātaki Auckland Unlimited. Around 20 Auckland-based organisations participated in the pilot, which included workshops and trial deployments of digital solutions. Pam Ford, Director of Economic Development at Tātaki Auckland Unlimited says, “Digital transformation doesn’t have to be expensive or disruptive. By adopting a phased approach using readily available technologies, manufacturing SMEs can create affordable and low-risk digital solutions that provide immediate benefits.” The Digital Manufacturing Light concept draws inspiration from the United Kingdom’s ‘Digital Manufacturing on a Shoestring’ programme developed by the Institute for Manufacturing (IfM) at the University of Cambridge, and is being developed in collaboration with IfM and partners across Australia and New Zealand. It follows similar principles but has been adjusted to suit the New Zealand business environment. This approach is particularly relevant for New Zealand’s manufacturing sector, which is predominantly composed of small businesses. Of the country’s 24,000 manufacturing businesses, only 1.6% employ […]

The pay equity puzzle: can we compare effort, skill and risk between different industries?

Gemma Piercy, Lecturer, Sociology, Social Policy and Criminology, University of Waikato Bill Cochrane, Senior Lecture in Sociology and Social Policy, University of Waikato Suzette Dyer, Senior Lecturer in Human Resource Management, University of Waikato Last week’s move by the government to amend pay equity laws, using parliamentary urgency to rush the reforms through, caught opposition parties and New Zealanders off guard. Protests against the Equal Pay Amendment Bill have continued into this week, driven to some extent by disappointment that an apparent political consensus on the issue has broken down. In 2017, the National-led government passed a forerunner to the current legislation for the health sector only, the Care and Support Workers (Pay Equity) Settlement Act. Later, in opposition, National also supported the Labour government’s Equal Pay Act in 2018, as well as the Equal Pay Amendment Act in 2020. That legislation was designed to extend a pay equity process to all occupations and create a clearer pathway for making pay equity claims. With both major parties seemingly aligned, some 33 pay equity claims were under way. Those claims – all halted now – involve the education, health and social services sectors. As such, the government would have to meet the costs of successful claims. This explains why one rationale for the law change has been that the claims were potentially too expensive. The other rationale (preferred by Finance Minister Nicola Willis and Workplace Relations Minister Brooke van Velden) is that the existing policy wasn’t sufficiently rigorous in determining the validity of some claims. Unlock new possibilities. In reality, both the cost and the policy framework allowing equity claims to proceed are interrelated: the more permissive the framework, the higher the potential cost to the government and employers. But while equal pay for equal work is the goal, it’s important to understand that equal pay and pay equity are not the […]

Upskilling your workforce: the secret weapon to staying ahead in tough economies

Convex, an innovative New Zealand plastic packaging company, sees staff training not just as a strategy, but as a vital driver of success. During the Covid-19 pandemic, the company actively invested in upskilling its people to stay agile through the crisis. Now, with New Zealand businesses facing fresh economic challenges, Convex continues to lead by example — showing how ongoing training builds a stronger, more resilient workforce. Convex Operations Manager Aaron Collett says agility and adaptability have been the key to thriving in an industry as competitive as plastics packaging. “Upskilling is a necessity to being and staying competitive, and for us competition is not just local, it’s global,” says Aaron. “Manufacturing is under pressure in New Zealand from imports and staying competitive in the packaging business is tough. A lot of what we do is highly specialised, capital intensive, and relies heavily on skilled trained staff.” He says while training is a non-negotiable at Convex, it must also be scalable through tough times. “Investment in training changes depending on the need, but for us it has always been important to continue upskilling our people, it’s just ‘the where’ and ‘the how’ that changes,” says Aaron. “As a business we certainly have been tested, firstly during Covid and more so recently with the economic downturn. In recent years we’ve had to navigate a new landscape in reduced demand so all areas of the business have been reviewed and training has been reduced in some non-core areas to reduce costs – but apprenticeships and appliance training maintains status quo and we’ve boosted training around HR, mental health and resilience as well as group training utilising the expertise of key suppliers.” One clear benefit of this sustained investment is agility. Trained employees can maximise production efficiency, adapt to new technologies, and take […]

Engineering capacity when and where you need it

Celebrating 10 Years of Caliber Design at SouthMach 2025 Caliber Design is turning 10—and we’re marking the occasion at SouthMach 2025 with a celebration that reflects who we are: practical, people-focused, and project-driven. Visit us at Booth 135 for a slice of birthday cake and go in the draw to win a $1,000 Christchurch Adventure Park voucher. While you’re there, we’d love to talk about how we can help you scale your mechanical engineering capacity, flexibly and efficiently. We’re not a consultancy. We’re not a contractor. Caliber is something different—a secondment-based engineering firm with a growing team of over 60 mechanical engineers working with businesses across New Zealand. We embed engineers directly into your team, on-site or remote, to provide the horsepower you need to get projects across the line. Whether you’re navigating a peak workload, filling a short-term skills gap, or moving a major capital project forward, our engineers are there when and where you need them. From machine design and product development to FEA and project engineering, our team has deep, practical experience across a wide range of industries—from automation and manufacturing to food processing, aerospace, and advanced materials handling. What Makes Caliber Unique? What sets Caliber apart isn’t just our model—it’s our people. We carefully select engineers who bring the right mix of technical ability, communication skills, adaptability, and professionalism. We back them with systems, mentors, and processes that ensure they deliver value quickly. And we stay involved—checking in regularly, monitoring progress, and making sure the secondment is working for everyone. When you engage a Caliber engineer, you don’t just get that one person—you tap into the entire Caliber network. That’s 350+ years of collective experience, shared knowledge, and access to a powerful library of proven templates and systems. As one client put it, “Caliber engineers don’t […]

Chemz: Built on experience, Powered by Kiwi loyalty

From May issue of NZ Manufacturer magazine. We celebrate this outstanding achievement. Chemz: 100 Seasons of Kiwi Innovation and Loyalty A New Zealand-owned success story built on quality, loyalty, and a commitment to solutions that work for Kiwi industries – celebrates 25 year anniversary. -John Berry The Chemz story begins more than 100 seasons ago, on the other side of the world. In 1964, during my OE, I entered the petroleum industry just as marine seismic surveys were beginning to shape the future of energy exploration. Working with Western Geophysical Co. of America, and later with Shell Australia, I gained hands-on experience across the Mediterranean, Gulf States, and Australia. After a decade abroad, I returned home to New Zealand and helped establish an American industrial aerosol brand that soon became a household name. However, when that company shifted from family ownership to corporate control, I knew it was time to step away. Whilst farming in Central Hawke’s Bay offered a refreshing change, it sparked a new vision: the idea of creating a New Zealand-owned aerosol company designed for Kiwi industries and Kiwi conditions. In 2000, that vision became reality. Chemz was formed after discussions with a group of national distributors seeking a new supplier committed to quality, consistency, and genuine service. After working closely with raw material suppliers, industrial chemists, and manufacturing partners, we launched Chemz with just nine products and a simple philosophy: Do it properly, or not at all. Fast forward to today, and Chemz now offers a range of over 100 premium products across the electrical, industrial, automotive, forestry, food, and paint sectors. We continue to develop solutions that meet the tough demands of New Zealand’s climate and industries—because what works overseas doesn’t always work here. Chemz operates from our purpose-built facility in the Whakatu Industrial Area […]

Article 2: The Crucial Role of System Integrators in Industry 4.0 and Automation

-Frank Phillips, Director, Fulcrum Welcome to the next part of our Industry 4.0 series for SME manufacturers. We’re exploring various companies that can help you embrace advanced technologies and optimise your operations. Today’s focus: System Integrators. Let’s dive in and see how they can drive your business success. System Integrators: The Orchestrators of Connectivity In the realm of Industry 4.0 and automation, system integrators are the maestros who ensure that all the pieces of your technological puzzle work seamlessly together. These companies specialise in connecting various automated systems, ensuring smooth communication and integration between hardware and software components. They act as the bridge that links different technologies, creating a harmonious and efficient manufacturing environment. Maximising Efficiency: How System Integrators Add Value Engaging a system integrator can significantly enhance your manufacturing operations by ensuring that all automated systems and technologies work in unison. Manufacturers facing challenges like disjointed processes, data silos, and inefficiencies can benefit greatly from the expertise of system integrators. By creating a unified system, these professionals help optimise workflows, reduce downtime, and improve overall productivity. System Integrators tend to have significant cyber security knowledge. When establishing a wider Operational Technology (OT) environment they can be key partners to keep your business secure. Journey to Integration: Typical Engagement and Resource Requirements The process of working with a system integrator typically begins with an assessment of your existing systems and a thorough understanding of your integration goals. This phase involves site visits, technical evaluations, and collaborative discussions to identify integration opportunities and challenges. The system integrator then designs a customized integration plan tailored to your specific needs. Expect to allocate internal resources, including IT personnel, operations managers, and system administrators, to collaborate with the system integrator. The engagement can range from a few weeks to several months, depending on the […]

Double materiality: What it is and why it matters to manufacturers

Sustainability isn’t just about ticking boxes for your next report. It’s about seeing the big picture – how the world is affecting your business and how your business is affecting the world. That’s the idea behind double materiality, and it’s something manufacturers across New Zealand should start paying attention to. Read our Need to know: Double materiality guide or get in touch with thinkstep-anz’s expert Martin Fryer to talk through what this could look like for your business. This approach goes beyond compliance. It can help you build a more resilient business, unlock opportunities and manage risks – whether you’re exporting food and beverages, building homes or making parts for machinery. What is double materiality? Double materiality means looking at sustainability from two perspectives: Impact materiality: how your activities affect the environment, society and economy. Financial materiality: how environmental and social issues affect your financial performance, risks and long-term success. This approach is already required in some parts of the world. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) mandates it. Even if you don’t export to the EU, it’s likely your customers or investors will start asking for the same level of transparency. Why does this matter in New Zealand? Even though New Zealand’s reporting regulations currently focus more on financial materiality, there’s growing interest in taking a broader approach. Why? Because it makes business sense. Let’s look at a few examples: Food and beverage manufacturing Impact materiality: The way you source ingredients matters. Are you contributing to deforestation, water stress or unethical labour practices? Financial materiality: If global retailers tighten their supply chain standards (as many already have), you could lose access to key markets unless you can prove your practices are sustainable. What you can do: Use certified ingredients, invest in traceability, or switch to […]

Remanufacturing 101: Reviving parts, reclaiming value

The remanufacturing market unlocks opportunity across sectors for higher margins, affordability, and supply chain resilience. Remanufacturing, the process of restoring used parts to give them a second life, has propelled into the spotlight in recent years by attempts to mitigate supply chain shortages, reach new customers through affordability, and search for high-margin alternatives for parts. Both independent remanufacturing companies and remanufacturing arms within OEMs have proved essential for efficiently restoring parts and creating a way to lower expenses while making operations more efficient. These players provide value across multiple industries, from the well-established space in the automotive sector to more emergent opportunities across sectors such as medical devices and electronics. All of these sectors can benefit from reduced dependence on raw materials, extended product life cycles, and more. But remanufacturing is an inherently complex process, and the industry faces unique challenges. For example, remanufacturers grapple with the unpredictable availability, quantity, and quality of incoming used parts (referred to as “core”), complex pricing due to the volume and long tail of SKUs, and a high volume of unstructured, text-based data generated by product warranty claims. What is remanufacturing? Remanufacturing is the process of restoring core to give it an entirely new life. The core, the starting point for the remanufacturing process, is typically a high-value part that requires technical expertise to be restored to its original function. Within the automotive and industrials industry, parts that can be remanufactured include engines, transmissions, hydraulic components (such as bucket lifters), and drivetrain components (such as clutches and axels), as well as turbochargers and superchargers. Historically, the automotive and industrial equipment industries have had the most use cases for remanufacturing, but a growing number of use cases are emerging in industries such as medical devices, furniture, electronics, and aircraft components. The remanufacturing process typically involves seven […]

Navigating the tariff maze: How NZ manufacturers can thrive amid trade tensions

Adam Sharman, CEO LMAC Group APAC Tariff turbulence: Understanding the impact on kiwi manufacturers. As trade tensions escalate globally, through the introduction of heavy tariff from the U.S. New Zealand manufacturers find themselves navigating increasingly complex waters. The United States is one of New Zealand’s key export markets worth approximately NZ$9 billion annually, and New Zealand products provide key components in other countries’ supply chains into the USA. The ripple effects of U.S. tariff changes extend far beyond simple price adjustments. When tariffs increase, manufacturers face immediate margin pressure, but also longer-term strategic questions about market positioning and investment priorities. For New Zealand’s primary sector, dairy processors, which have developed specialised ingredients for U.S. food manufacturers, tariff increases could undermine carefully cultivated market positions. Similarly, premium meat exporters who have invested heavily in sustainability certifications and farm-to-table traceability to command premium pricing, could see their value propositions challenged. The impact extends beyond agricultural processing. New Zealand’s high-tech manufacturing sector, including medical device manufacturers and precision agricultural equipment producers, faces similar challenges. For organisations that have established niches in specialised global supply chains where even modest tariff increases could significantly alter competitive dynamics, a focus on IP protection and maintaining certifications required for market access, for example in aerospace, pharmaceuticals and defence help protect market position, and reduce price sensitivity. Strategic pivot: Capitalising on trade war opportunities While tariff increases present challenges, they also create strategic opportunities. As tensions escalate between the United States and other major trading blocs, particularly Europe and China, New Zealand manufacturers could benefit from “tariff arbitrage” – situations where Kiwi products become relatively more competitive due to higher tariffs on competitor nations. Exporting organisations are required to think differently about their global market positioning, both in terms of direct market tariffs and the relative position […]

From Automation to Augmentation: How Industry 5.0 is Redefining Manufacturing

The landscape of manufacturing is undergoing a significant transformation as we transition from the principles of Industry 4.0 to the emerging focus of Industry 5.0. While Industry 4.0 emphasised automation and the integration of digital technologies into manufacturing processes, Industry 5.0 shifts the spotlight towards augmentation, fostering a harmonious collaboration between humans and machines. Evolution from Industry 4.0 to 5.0 Industry 4.0 brought a revolution by embedding automation and data exchange into manufacturing through cyber-physical systems, the Internet of Things, and cloud computing. The central aim was to streamline operations, reduce human intervention, and enhance efficiency. However, as we pivot to Industry 5.0, the emphasis broadens to include the critical role humans play alongside machines, leveraging the unique capabilities of both to drive innovation and adaptability. Key Differences: Automation vs Augmentation The shift from automation to augmentation marks a fundamental change. Automation focuses on machines performing tasks independently, effectively reducing human involvement in repetitive and labour-intensive activities. In contrast, augmentation enhances human capabilities. It is about empowering workers with intelligent systems, using machines to support and elevate human decision-making and creativity rather than replace it. Benefits of Human-Machine Collaboration The synergy between humans and machines in Industry 5.0 offers numerous benefits. It enhances problem-solving capabilities by combining human intuition with machine precision and data processing power. This partnership can lead to more innovative solutions and a more flexible production environment. Moreover, it increases operational efficiency as machines handle repetitive tasks, allowing human workers to focus on more strategic roles that require creativity and complex decision-making. Examples of Successful Augmentation Real-world examples of successful augmentation in manufacturing often involve collaborative robots, known as cobots, working alongside human workers on production lines. These cobots are designed to assist with precision tasks, reducing the physical strain on workers and lowering the risk of human error. […]

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